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Principles Of Management > Chapter 6 > Flashcards

Chapter 6 Flashcards

1
Q

Resources

A

Assets, capabilities, processes, employee time, information, and knowledge that an organization controls.

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2
Q

Competitive advantage

A

Using resources to provide greater value for customers than competitors can

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3
Q

Sustainable competitive advantage

A

When other companies cannot duplicate the value a firm is providing to customers

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4
Q

Valuable resources

A

Allow companies to improve their efficiency and effectiveness

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5
Q

Rare resources

A

Resources that are not controlled or possessed by many competing firms

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6
Q

Imperfectly limitable resources

A

Resources that are impossible or extremely costly or difficult to duplicate

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7
Q

Nonsubstitutable resources

A

No other resources can replace them and produce similar value or competitive advantage

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8
Q

Competitive inertia

A

A reluctance to change strategies or competitive practices that have been successful in the past

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9
Q

Strategic dissonance

A

Discrepancy between a company’s intended strategy and the actions managers take when actually implementing that strategy

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10
Q

Situational analysis (SWOT)

A

Strengths, weaknesses,opportunities, and threats assessment in an organization internal environment and the opportunities and threats in external environment

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11
Q

Distinctive competence

A

Company that can make do or perform better than its competitors

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12
Q

Shadow strategy task force

A

Company actively seeking out its own weaknesses and then thinking like it’s competitors trying to determine how they can be exploited for competitive advantage

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13
Q

Core capabilities

A

Less visible internal decision making routine, problem solving process and organizational cultures that determine how efficiently inputs can be turned into outputs

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14
Q

Strategic group

A

Group of other companies within an industry against which top managers compare evaluate and benchmark their company’s strategic threats and opportunities

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15
Q

Core firms

A

Central companies in a strategic group

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16
Q

Secondary firms

A

Firms that use strategies related to but somewhat different from those of core firms

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17
Q

Strategic reference points

A

Targets that managers use to measure whether their firm has developed the core competencies that it needs to achieve a sustainable competitive advantage

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18
Q

Corporate level strategy

A

Overall organizational strategy that addresses the question

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19
Q

Diversification

A

Owning stocks in a variety of companies in different industries

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20
Q

Portfolio strategy

A

Corporate level strategy that minimizes risk by diversifying investment among various businesses or lines

21
Q

Acquisitions

A

Other companies to buy

22
Q

Unrelated diversification

A

Creating or squaring companies in completely unrelated business

23
Q

BCG Matrix

A

Portfolio strategy that managers use to categorize their corporations businesses by growth rate and relative market share which helps decide how to invest corporate funds

24
Q

Stars

A

Are companies that have a large share of fast growing market

25
Q

Question marks

A

Are companies that have a small share of a fast growing market

26
Q

Cash cows

A

Companies that have a large share of a slow growing market

27
Q

Dogs

A

Companies that have a small share of a slow growing market often not profitable

28
Q

Grand strategy

A

Broad strategic plan used to help an organization achieve its strategic goals

29
Q

Growth strategy

A

To increase profits, revenues,market share, or the number of places in which the company does business

30
Q

Stability strategy

A

Continue doing what they have been doing just doing it better

31
Q

Grand strategy

A

A broad corporate level strategic plan used to achieve strategic goals and guide

32
Q

Stability Strategy

A

A strategy that focuses on improving the way in which company sells the same products or services to the same customers

33
Q

Retrenchment strategy

A

A strategy that focuses on turning around very company performance by shrinking the size or scope of the business

  • making cost reductions by laying off employees close performing stores, offices,or manufacturing plants
  • by closing or selling entire lines of products or services
34
Q

Recovery

A

The strategic actions taken after retrenchment to return to a strategy

35
Q

Industry level strategy

A

A corporate strategy that addresses the question “How should we compete in this industry”

36
Q

Character of rivalry

A

A measure of the intensity of competitive be between companies in an industry

37
Q

Purpose

A

To protect your company from the negative effects of industry competition and to create a sustainable competitive advantage

38
Q

Cost leadership

A

Producing a product or service of acceptable quality consistently lower production cost than competitors can , so that the offer the product or service at the lowest price in the industry

39
Q

Differentiation

A

Providing a product or service that is sufficiently different competitors offerings that customers are willing to pay a premium product

40
Q

Focus strategy

A

Using cost leadership or differentiation to produce a specialized product or service for a limited specially targeted group of customers in a particular geographic region or market segment

41
Q

Adaptive strategies
To chose an industry level strategy that is best suited to change an organizations external environment
Defenders?

A

Companies using an adaptive strategy

42
Q

Prospectors

A

Companies using an adaptive strategy that seeks fast growth
Searching for new market opportunities
Encouraging risk takers
Being the first to bring innovative new products to market

43
Q

Reactors

A

Do not follow a consistent

44
Q

Firm level strategy

A

A corporate strategy that addresses the question should we compete against a firm

45
Q

Direct competition

A

Rivalry between two companies that offer similar products or services ,acknowledge each other as rivals and act on each others market place

46
Q

Market commonality

A

The degreee to which two companies have of products services or customers in multiple markets

47
Q

Resource similarity

A

The extent to which a competitor has a similar and kinds of resources

48
Q

Attack

A

A competitive move designed to reduce a rivals market share

A full attack strategy can provoke harsh retaliatory responses

49
Q

Response

A

A counter move prompted by a rivals attack or improve a company’s market share or profit
Match or mirror competitors move

Principles Of Management (15 decks)

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