Chapter 4-6 Flashcards
1
Q
Social: what are environmental forces, who do they affect , do they effect everyone the same ?
A
Macroenvironmental forces affect industries and individual firms within them .
The focus at this stage of analysis is on the industry, not the firm.
Certain forces are more prominent in some industries than in others.
2
Q
Social: What are types of Macroenvironmental Forces
A
- Political-Legal forces
- Economic forces
- Social forces*
- Technological forces*
Collectively,referred to as PEST.
3
Q
Social: What are example of Social Forces
A
Social Forces:
i. Societal values
ii. Trends
iii. Traditions
iv. Religious practices
v. Concern for the . environment
4
Q
Social: What is Case #1 of social force
A
Social ForcesCase #1 Eating Habits
-Consumers “super size” while demanding healthier foods.
Ex: Many fast food restaurants have been “supersizing” their meal combos adding extra fries and larger drinks, while at the same time expanding alternatives for items such as grilled chicken sandwiches and salads
5
Q
Social: What is Case #2 of social force
A
Social Forces Case #2 Automobiles
- contrary to other parts of the world demand for large vehicles remains strong in the U.S. amidst cries for greater fuel economy.
6
Q
Social: What is Case #3 of social force
A
Social Forces Case #3 Global Concerns:
Social forces are influenced by national culture, the generally accepted values, traditions, and patterns of behavior in a society. Firms should recognize these cultural differences.
Some firms struggle because their managers consciously refer to their own cultural values as a standard of judgment, a phenomenon known as the self-reference criterion.
7
Q
Social: what influences social forces
A
Social forces are influenced by national culture, generally accepted values, traditions, and patterns of behavior in a society.
Firms should recognize these cultural differences b/c those operating in multiple countries must address multiple sets of social forces.
8
Q
How does Social force of Global Concerns affect industries
A
Some firms struggle because their managers consciously refer to their own cultural values as a standard of judgment, a phenomenon known as the self-reference criterion.
9
Q
What is the the macroevniromental force of technological forces ?
A
Technological forces are
Scientific improvements & innovations such as the
internet which is arguably the most pervasive technological force affecting most industries.
10
Q
Technology: what did Thomas Friedman man theorize about the world because of technology
A
Thomas Friedman theorized that the world is flat due to the fact that “Any activity that can be digitized and moved around will get moved around.”
11
Q
Technology: How has technology impacted contact with developing nations.
A
telecommunications firms laid fiber optic cables across the oceans to connect the U.S. with China and India. Since the dot-com bust, these cables have provided high quality, low cost contact with developing nations,
12
Q
Technology: How has strategy been impacted by the internet
A
the Internet plays a substantial role, critics challenge “new business models” are needed to compete in the “new economy.” Michael Porter and others argue the market forces that governed the traditional economy have not disappeared in the Internet economy.
13
Q
Technology: What is the concept of aggregation and aggregation?
A
Large firms exist because they can perform most tasks more efficiently than they would otherwise i outsources; many progressive firms have “disaggregated” by no longer perform all of their functional activities, but instead “reaggregate” by searching for partners who can perform some of the activities more efficiently.
14
Q
Technology: What are some strategic dimensions because of the internet.
A
Internet has influenced strategic management in specific ways. The Five Strategic Dimension of the Internet:
- Movement Toward Info Symmetry
- Internet as a Distribution Channel
- Speed
- Interactivity
- Cos Reductions and Cost Shift potential
15
Q
Technology: What’s Strategic Dimension of the Internet: Movement Toward Info Symmetry
A
Typical markets are characterized by information asymmetry:sellers control key information that is not available to buyers. The Internet promotes information symmetry: buyers and sellers share information.
16
Q
Technology: What’s Strategic Dimension of the Internet: Internet as a Distribution Channel
A
The Internet acts as a distribution channel for non-tangible goods and services. Consumers can purchase items (i.e. airline tickets, insurance, stocks, and computer software) online without the necessity of physical delivery.
17
Q
Tehnology:What’s Strategic Dimension of the Internet: Speed
A
Internet offers opportunities to improve the speed of transactions and the process that leads up to and follows it.
18
Q
Technology: What’s Strategic Dimension of the Internet: Interactivity
A
Consumers discuss their experiences with products and services .Firms can readily exchange information with trade associations that represent their industries.
19
Q
Technology: What’s Strategic Dimension of the Internet: Potential for cost reductions and cost shifting
A
Internet provides businesses with opportunities to minimize their costs(fixed and variable) enhancing flexibility.
20
Q
what are the forms of E-Commerce
A
Form of Electronic Commerce include : Bossines: i.B2B ii.B2C (Ex:Amazon) iii.B2G
Consumers:
i. C2B (Ex: Priceline)
ii. C2C (Ex: Ebay)
21
Q
Technology: How is Electronic Commerce affecting companies
A
traditional firms are integrating e-commerce into their existing business models, combo known as clicks and bricks. Firms are attempting to build synergy between traditional and virtual storefronts.
22
Q
Technoloyg: What is the concept of commoditization
A
Commoditization—Firms are having a more difficult time distinguishing their products and services from those of their rivals. buyers tend to reduce the purchase decision to a few factors (features or quality)If they cannot distinguish among the competitors view the product as a commodity and base their final purchase decision on price.
23
Q
Technology: What is the concept of mass customization
A
Technology has enabled firms to engage in Mass Customization which is the ability to individualize product and service offerings to meet specific buyer needs.
24
Q
Technology: What is environmental scanning
A
Environmental scanning is macroenvironmental trends the systematic collection and analysis of information about relevant . (ex: Keeping up with business trends )
25
Technology: what is the challenge today in environmental scanning:
challenge is making sense of the infor ; deluge of reports, press releases, statistics, etc.
26
Technology: what is the benefits of environmental scanning
Benefits of environmental scanning include:
i. increased general awareness of environmental changes
ii. Greater effectiveness in governmental matters
iii. effective diversification and resource allocation decisions a
27
what are Case Analysis Steps 7–8 Social & Technological Forces
Case Analysis Steps 7–8 Social & Technological Forces:
i. Identify the specific social (step 7) and technological (step 8) forces
ii. Specify precisely how the factors identified affect the industry.
iii. Focus on the industry, not the firm.
28
Who controls organization direction
Stakeholders—individuals or groups who are affected by or can influence an organization’s operations
29
What is organization mission
Mission is the reason for the firm’s existence
30
what are organization goals
Goal are desired ends toward which efforts are directed
31
What are organization objectives
Objectives are specific, quantifiable versions of goals
32
What is The Agency Problem
The agnency problem is a situation in which a firm’s managers—the “agents” of the owners—fail to act in the best interest of the shareholders.
33
Where is The Agency problem rooted
problem is rooted in moral hazard, when the parties in an arrangement (owners and managers) do not share equally in risks and benefits.
34
How is the Agency problem complicated
its complicated by adverse selection, the inability of shareholders to identify the precise competencies and personal attributes of top managers when they are hired.
35
What are examples of the Agency Problem
Agency Problems include:
i. Management Serves Its Own Interests
ii. Management and Stockholders Share Same Interests
36
what the prospective of agency problem #1 where Management Serves Its Own Interests
Perspective #1 on the Agency Problem
Executives seek to grow the firm because compensation increase with firm size.
Executives diversify the firm to increase prospects for survival at the expense of profitability.
37
what the prospective of agency problem #2 Management and Stockholders Share Same Interests
Perspective #2 on the Agency Problem
Due to managers' livelihoods being directly tied to the success of the firm, they manage it in the best interest of the shareholders.
Stock options can support this perspective by “turning the managers into owners.”
38
What is Managerial Ethics
Managerial Ethics refers individual responsibility to make business decisions that are legal, honest, moral, and fair.
39
What is difficult about Managerial Ethics
Agreeing on what is “moral” and “fair” can be a difficult task
40
What isn't difficult about Managerial Ethics
Agreeing on what is “legal” and “honest” may not be difficult.
41
What are the 6 Perspectives on Managerial Ethics
The 6 Perspectives on managerial emetics are
1. Utilitarian View
2. Self-Interest View
3. Rights View
4. Justice view
5. Integrative Social contracts view
6. Religious view
42
What is the Utilitarian Perspective on Managerial Ethics
The Utilitarian view:
| Anticipated outcomes and consequences should be the only considerations when evaluating an ethical dilemma.
43
What is the Self-Interest Perspective on Managerial Ethics
The Self-Interest view:
| Benefits of the decision-maker(s) should be the primary considerations.
44
What is the Rights Perspective on managerial ethics
The Rights view:
| Evaluate organizational decisions on the extent to which they protect basic individual rights
45
What is the Justice Perspective on managerial ethics
The Justice view:
| All decisions will be made in accordance with pre-established rules or guidelines.
46
What is the Integrative Social Contracts Perspective on managerial ethics
The Integrative Social Contracts view:
| Decisions should be based on existing norms of behavior, including cultural, community, or industry factors
47
What is the Religious Perspective on managerial ethics
The Religious view:
| Decisions should be based on personal or religious convictions.
48
What are the 6 Explanations for Unethical Behavior
```
6 Explanations for Unethical Behavior include:
People:
1. Deny responsibility
2. Deny injury
3. Deny rights of victims
4. Engage in Social weighting
5. Appeal to higher values
6. Invoke the Metaphor of the ledger
```
49
Describe the explanation for unethical behavior : Deny responsibility
Individuals deny responsibility, rationalizing that they have no other choice but to participate in unethical behavior.
50
Describe the explanation for unethical behavior : Deny injury
Individuals deny injury, suggesting that the unethical behavior did not really hurt anyone.
51
Describe the explanation for unethical behavior : Deny rights of victims
Individuals deny rights of the victims, rationalizing that “they deserve what they got anyway
52
Describe the explanation for unethical behavior : Engage in Social weighting
Individuals engage in social weighting by making carefully controlled comparisons.
53
Describe the explanation for unethical behavior : Appeal to higher values
Individuals can appeal to higher values by suggesting that justification of the unethical behavior is due to a higher order value.
54
Describe the explanation for unethical behavior : Invoke the Metaphor of the ledger
Individuals may invoke the metaphor of the ledger, arguing that they have the right to engage in certain unethical practices because of other good things they have done.
55
What is social responsibility
Social Responsibility refers to the expectation that businesses should serve both society and the financial interests of the shareholders.
56
What is the difference between the ethics vs social responsibility
Ethics is about the individual; social responsibility is about the firm.
57
What are the Pros of Corporate Social Responsibility
Pros of Corporate Social Responsibility :
i. focus on the need for firms to “give back” to the community.
ii. highlights both influence and resources available to firms in terms of advertising, product development, and community involvement.
iii. generally good business and can stave off government regulation.
58
What are the Cons of Corporate Social Responsibility
Cons of Corporate Social Responsibility :
i. triple bottom line, firms must maintain and improve social and ecological performance in addition to economic performance
ii. firms should be active socially only when doing so enhances profits. Managers don’t know what’s in the best interest of society and they shouldn’t spend shareholder resources on giving back to society
59
what is Sustainable Strategic Management
Sustainable strategic management (SSM) is a broader notion of social responsibility refers to the strategies and related processes that promote superior performance from both market and environmental perspectives.
60
what does Sustainable Strategic Management perspective strive for
The SSM perspective seeks to integrate the needs to earn profits and to serve society
61
What is corporate takeover
Takeover is a purchase of a controlling quantity of shares of a firm by an individual, a group of investors, or another organization.
62
What is leveraged buyout
Leveraged Buyout (LBO): Takeovers that rely heavily on borrowed funds.
63
What are the Pros of Takeovers
Pros of Takeovers include:
i. Takeovers provide a needed system of checks and balances.
ii. The threat of a takeover can pressure managers to operate their firms more efficiently.
64
What are the Cons of Takeovers
The Cons of Takeovers:
i. need to pay back large loans cause management to overemphasize the short term.
ii. Extra debt required for an Leveraged Buyout (LBO) can lead to bankruptcy.
65
What's outsourcing
Outsourcing is contracting out a firm’s non-core, non-revenue-producing activities to other organizations primarily to reduce costs.
66
What's offshoring
Offshoring is relocating some or all of a firm’s manufacturing or other business processes to another country to reduce cost
67
How are outsourcing and offshoring different
offshoring is similar to outsourcing, but it enables the firm to retain control of the operations abroad instead of relinquishing them to other firms.
68
whats an incentive for both outsourcing and offshoring
Cost-cutting is the incentive for both outsourcing and offshoring
69
What kind of jobs are being outsourced
Some “white collar” jobs are now being outsourced, including attorneys and accountants.
70
What is Corporate Level Strategy
corporate-level strategy is the strategy top management formulates for the overall corporation.
71
What other Levels formulate Strategy
Strategies are also formulated at the business (competitive) and functional levels.
72
What are Corporate Profile options
Corporate Profile has 3 options:
1. single industry
2. related industries
3. unrelated industries
73
Whats the Corporate Profile option: single industry
Compete in a single industry:
| Allows a firm to specialize, but “all eggs are in a single basket.”
74
Whats the Corporate Profile option: related industries
Compete in related industries:
| Allows a firm to develop synergy among the business units.
75
what is synergy as it relates to the Corporate Profile option: related industries
Synergy occurs when the combination of two organizations results in higher effectiveness and efficiency than would otherwise be generated separately.
76
Whats the Corporate Profile option: unrelated industries
Compete in unrelated industries:
| Minimizes risk through diversification
77
What are Corporate Strategy options
Corporate Strategy has 3 options:
1. Growth (increase in size)
2. Stability (retain current size)
3. Retrenchment (decrease in size)
78
What are Corporate Strategy : Growth Strategies
Growth Strategies include :
i. internal growth
ii. external growth
iii. merger
iv. acquisition
Growth is not necessarily the best strategic alternative for every healthy organization
79
What are Corporate Strategy : Growth Strategy- internal growth
Internal Growth- expanding by internally increasing its size and sales.
80
What are Corporate Strategy : Growth Strategy- external growth
External Growth- acquiring other companies.
| usually occur more quickly than internal growth, can enable a firm to modify its corporate profile
81
What are Corporate Strategy : Growth Strategy- merger
Merger is when two or more firms, roughly similar sizes, combine into one through an exchange of stock
82
What are Corporate Strategy : Growth Strategy- acquisition
Acquisition is a form of merger whereby one firm purchases another, often with a combination of cash and stock
83
What are five growth alternatives
integrating newly acquired entities into the current organization can be difficult
five growth alternatives are:
1. horizontal integration
2. horizontal related diversification
3. conglomerate (unrelated) diversification
4. Vertical integration
5. Strategic alliances
84
What is growth alternative: horizontal integration
firm that acquires other companies in the same line horizontal integration of business allows a firm operating in a single industry to grow rapidly without moving into other industries.
85
What is growth alternative: diversification
diversification is when a firm acquires a business outside its present scope of operation, but with similar or related core competencies, the firm’s key capabilities and collective learning skills that are fundamental to its strategy, performance, and long-term profitability.
86
What is growth alternative: conglomerate (unrelated) diversification.
conglomerate (unrelated) diversification when a corporation acquires a business in an unrelated industry to reduce cyclical fluctuations in cash flows or revenues,
87
What is growth alternative: Vertical integration
Vertical integration is merging various stages of activities in the distribution channel
88
what is backward integration
a firm acquires its suppliers (i.e., expanding “upstream”), is backward integration
89
what is forward integration
a firm acquiring its buyers (i.e., expanding “downstream”) is engaging in forward integration.
90
What is growth alternative: strategic alliances
Strategic alliances aka partnerships occur when two or more firms agree to share the costs, risks, and benefits associated with pursuing new business opportunities.
91
What is stability
Stability is attempting to maintain the present size and scope of operations
92
When is stability preferred over growth
Stability is more attractive than growth when:
i. Industry growth is slow or non-existent
ii. Costs associated with growth do not exceed its benefits
iii. Growth may place great strains on quality and customer service.
iv. Large, dominant firms may not want to risk prosecution for monopolistic practices
93
What are retrenchment strategies
retrenchment strategy is when a firm deliberately reduces its size when it employs a retrenchment strategy
94
When do firms employ retrenchment strategies
When performance is disappointing retrenchment strategy may be appropriate.
95
What is corporate restructuring and when does it occur
corporate restructuring is a reorganization process of a firm and often accompanies retrenchment strategy
96
What is the event turnaround
turnaround seeks to transform the corporation into a leaner, more effective firm.
includes such actions as: eliminating unprofitable outputs, pruning assets, reducing the size of the workforce, cutting costs of distribution, and reassessing the firm’s product lines and customer groups.
97
what are examples of turnaround
turnaround includes such actions as:
i. eliminating unprofitable outputs
ii. pruning assets
iii. reducing the size of the workforce
iv. cutting costs of distribution
v. reassessing the firm’s product lines and customer groups.
98
What is divestment
Divestment is selling one or more of a firm’s business units
99
When is divestment necessary
Divestment may be necessary when:
i. the industry is in decline
ii. when a business unit drains resources from more profitable units
iii. when a business unit is not performing well
iv. when a business unit is not synergistic with other corporate holdings.
100
What is Liquidation
Liquidation is the strategy of last resort, and terminates the business unit by selling its assets
101
How is liquidation related to divestment
liquidation represents a divestment of all the firm’s business units and should be adopted only under extreme conditions.
102
what is Case Analysis Step 9: Identify the Corporate Strategy
Case Analysis Step 9: Identify the Corporate Strategy:
- What is the corporate profile?
- What is the corporate strategy?
- Provide support and explain the details
103
what is the Boston Consulting Group Growth-Share Matrix
Boston Consulting Group (BCG) Matrix is corporate portfolio framework that examines the relationships among business units held by a single firm.
104
What are four kinds of businesses within the Boston Consulting Group (BCG) Matrix
There are four kinds of businesses within the Boston Consulting Group (BCG) Matrix :
i. stars
ii. question marks
iii. cash cows
iv. dogs
105
What is the Boston Consulting Group (BCG) Matrix business type : stars
Stars high growth potential & high market share
106
What is the Boston Consulting Group (BCG) Matrix business type : question marks
Question Marks- high growth potential, but low market share
107
What is the Boston Consulting Group (BCG) Matrix business type : cash cows
Cash Cows- low growth potential, but high market share
108
What is the Boston Consulting Group (BCG) Matrix business type : dogs
Dogs- low growth potential & low market share
109
What are the Boston Gorup Matrix BCG Matrix Four Options for Strategic Managers
BCG Matrix Four Options for Strategic Managers:
1. Build Market Share with stars and question marks
2. Hold market share with cash cows
3. harvest (milk) as much short term cash as possible
4. Divest business
110
What are some considerations of corporate strategy
Corporate Strategy Considerations:
i. Involvement at the international level (minimal)
ii. Involvement at the multinational level (moderate)
iii. Involvement at the global level (maximum
111
What are some characteristics of Global Corporate Strategy Option 1: involvement at the International Level
```
Global Corporate Strategy Option 1:Involvement at the International Level:
i. importing
ii. exporting
iii. international licensing
iv. International franchising
v strategic alliances
```
112
What are some characteristics of Global Corporate Strategy Option 2:Involvement at the Multinational Level
Global Corporate Strategy Option 2:Involvement at the Multinational Level:
i. direct investment in other countries
ii. subsidiaries operate independently form each other
113
What are some characteristics of Global Corporate Strategy Option 3:Involvement at the Global Level
Global Corporate Strategy Option 3:Involvement at the Global Level:
i. direct investments abroad
ii. subdivisions are independent
114
What are Six Global Orientation Considerations that help determine appropriateness of an option
Six Global Orientation Considerations: that help determine Which Option Is Most Appropriate:
1. Are customer needs abroad similar to those in the firm’s domestic market
2. Are differences in transportation and other costs abroad conducive to producing goods and services abroad
3. Are the firm’s customers or partners already involved in global business
4. Will it be difficult to distribute goods and services abroad
5. Will government trade policies facilitate global expansion
6. Can managers in one country learn from managers in other countries
115
what is a business unit
Business Unit:
| An organizational entity with its own mission, set of competitors, and industry
116
what is competitive advantage
Competitive Advantage:
| A state whereby a business’ successful strategies cannot easily be duplicated by competitors.
117
what are generic strategies
Generic Strategies:
| A simple categorization of competitive strategies available to businesses
118
what is a strategic group
Strategic Group:
| Businesses employing the same generic strategy.
119
What are Proter's Generic Strategies
Porter’s Generic Strategies:
1. Low Cost Strategy
2. Differentiation Strategy
3. Low Cost Differentiation Strategy
120
What does Porter's Generic Strategy: Los Cost (cost leadership w/o focus) entail
Low-Cost (Cost Leadership) Strategy (without focus):
i. Produce basic no-frills products and services for mass market of price-sensitive customers.
ii. Often (but not always) build market share through low prices
iii. Low initial investment and low operating costs.
iv. Often outsource to reduce costs.
v. Vulnerable to price competition.
121
What does Porter's Generic Strategy: Focus–Low-Cost Strategy entail
Focus–Low-Cost Strategy:
i. Emphasizes low costs while serving a narrow segment of the market, producing no-frills products or services for price-sensitive customers in a market niche.
ii. Compete only in a niche where cost advantages relative to large competitors can be enjoyed.
iii. Vulnerable to price competition
122
What does Porter's Generic Strategy:Differentiation Strategy (without focus) entail
Differentiation Strategy (without focus):
i. Produce and market to industry products/services t readily distinguished from those of competitors
ii. Emphasize scientific breakthroughs, technology, and flexibility
iii. Differentiation can be based on the product’s physical characteristics or other factors (i.e quality, marketing, or service.)
123
What does Porter's Generic Strategy:Focus-Differentiation Strategy entail
Focus-Differentiation Strategy:
i. Produce and market highly differentiated products/ services for specialized needs of market niche.
ii. Customers in a niche might be willing to pay higher prices for specialized products/services
124
What does Porter's Generic Strategy:Low-Cost–Differentiation Strategy (without focus) entail
Low-Cost–Differentiation Strategy (without focus):
| i. Emphasize both low costs and differentiation.
125
What is the combination strategy debate
Combination Strategy Debate: According to Porter, i. low cost and differentiation aren't compatible in the long run
ii. efforts to differentiate generally increase a business’ relative cost position.
iii. Others argue that the two may be compatible, although combining strategies is usually more difficult to accomplish.
126
What are 5 Ways a Business Can Pursue a Low-Cost–Differentiation Strategy
5 Ways a Business Can Pursue a Low-Cost–Differentiation Strategy:
1. Commitment to Quality
2. Differentiation based on low costs
3. Process innovations
4. Product innovations
5. Value Innovations
127
What does Low-Cost–Differentiation Strategy business pursuit : Commitment to Quality provide
Commitment to quality not only improves outputs but also reduces costs involved in scrap, warranty, and service after the sale.
Building quality can reduce the costs of rework, scrap, and servicing the product after the sale
128
What does quality do for a business.
Building quality into a product can reduce the costs of rework, scrap, and servicing the product after the sale
129
What are benefits for the business for ow-Cost–Differentiation Strategy business pursuit : Commitment to Quality provide
the business benefits from increased customer satisfaction and repeat sales, which can improve economies of scale.
130
What does Low-Cost–Differentiation Strategy business pursuit : Differentiation based on low costs provide
Differentiation on the Basis of Low Costs
firms that achieve low-cost positions also lower their prices because many of their competitors may not be able to afford to match their price level
131
What does Low-Cost–Differentiation Strategy business pursuit : Process innovations provide
Process innovations increase the efficiency of operations and distribution.
132
In addition to lowering cost, what else does What does Low-Cost–Differentiation Strategy business pursuit : Process innovations provide
Although these improvements are normally thought of as lowering costs, they can also enhance product or service differentiation.
133
What does Low-Cost–Differentiation Strategy business pursuit : product Innovations provide
Product innovations are typically presumed to enhance differentiation but can also lower costs.
134
What does Low-Cost–Differentiation Strategy business pursuit : Value innovations
provide
Value innovations Modify products, services, and activities in order to maximize the value delivered to customers
135
when do you differentiate value innovatoins
Differentiate products and services only when associated cost hikes can be justified by increases in overall value and by pursuing cost reductions that result in minimal, if any, reductions in value
136
What is Focus–Low-Cost/Differentiation Strategy
combines all of the facets of low costs, differentiation, and focus to produce highly differentiated products or services for the specialized needs of a select group of customers while keeping costs low.
137
What's involved with multiple strategies
```
Multiple strategies” isn't “combination strategy
Employs more than one strategy simultaneously, each tailored to the needs of a distinct market or class of customers.
```
138
What is The Miles and Snow Strategy Framework
4 business strategy options :
1. Prospectors
2. Defenders
3. Analyzers
4. Reactors
139
What is The Miles and Snow Strategy Framework: Prospectors
Prospectors seek first mover advantages by introducing new products and services
140
What is The Miles and Snow Strategy Framework: Defenders
Defenders seek stability and only compete in a predictable segment of the market.
141
What is The Miles and Snow Strategy Framework: Analyzers
Analyzers represent a middle ground between prospectors and defenders and emphasize flexibility and second mover advantages.
142
What is The Miles and Snow Strategy Framework: Reactors
Reactors lack consistency and perform poorly.
143
what is Case Analysis Step 10: Business-Level Strategy
Case Analysis Step 10: Business-Level Strategy:
i. Apply both the Porter and Miles & Snow typologies.
ii. Discuss the uniqueness of the strategy, including how it differs from competitors that might employ the same generic strategy.
iii. Provide details
144
What is the strategy of a small business size
Small businesses tend to enjoy the advantages of speed, flexibility, and lower initial investment.
145
What is the strategy of a large business size
Large businesses tend to enjoy benefits associated with economies of scale.
146
What is the strategy of a mid-size business size
Mid-size businesses often (but not always) struggle in terms of performance because they may lack either set of advantages
147
what is Case Analysis Step 11: Business-Level Strategies of Competitors
Case Analysis Step 11: Business-Level Strategies of Competitors:
i. Utilize at least one of the generic strategy typologies (i.e., Porter or Miles & Snow) to describe the strategies of competitors.
ii. Draw a picture to illustrate the clustering of businesses in an industry along several generic strategy approaches.
148
How do you asses Strategies
Assessing Strategies:
I Although the distinctions between generic business strategies are readily made in theory, they are not always easy to assign in practice.
ii. Formulating an effective competitive strategy is almost impossible without a clear understanding of the primary competitors and their strategies
149
What are some global concerns
Global Concerns:
i,Common advice: “Think globally, but act locally.”
ii, Should a business vary its strategy considerably from one country to another, or should consistency be emphasized
