Exam 1 Flashcards
What are the core components of strategy?
The core components of ______ are goals, resources, environment, and action.
Define “goals”
_____ are purposes, mission, values, etc.
Define “resources”
_____ are strengths, weaknesses, knowledge, skills, capabilities, etc.
Define “environment”
________ is/are the customers, suppliers, competitors, complementors, society, etc.
Define “action”
_____ is the intended, emergent, or realized pattern plan, structure, or theme.
Define “strategy”
_____ is a purpose-driven and environmentally embedded pattern of resource deployments
Describe Section 1 in Strategy
______ is Analysis (environmental, industry, competitor, complementor, internal)
Describe Section 2 in Strategy
_____ is Options (differentiation, integration, diversification)
Describe Section 3 in Strategy
_____ is Choice & Implementation
Draw Template #1: Ford
Draw Template #1: Chipotle
What are the two views of an organization?
Holistic and fragmented two views of __________.
What is included in the Environmental Analysis?
GDP, Disposable/Discretionary Income, Consumer Confidence, Interest Rates, Inflation Rates, Availability of Credit, Stock Market Trends, Unemployment and Undermployment, Currency Values, Commodity Values, and Energy Costs are included in the ___________.
Define “GDP”
_____ is all of the goods and services produced domestically
What are the four stages of the economy?
Recession, Early Recovery, Late Recovery, Early Recession are the ____________.
What are 3 sectors that profit during a recession?
cyclicals and transports, technology, and industrials profit during a ___________.
What are 3 sectors that profit during an early recovery?
industrials, basic materials, and energy profit during a ______________.
What are 3 sectors that profit during a late recovery?
Energy, staples, and services profit during a ________.
What are 3 sectors that profit during an early recession?
Services, utilities, cyclicals and transports profit during a __________.
Define “disposable and discretionary income”
_________ is average after tax income
What kind of affect do stock market trends have on consumer confidence?
______ have an indirect effect on consumer confidence
Define “unemployment”
________ is actively searching and unable to find work
Define “ underemployment”
________ includes the unemployed, discouraged, part-time, and overqualified
What are the 3 Environmental Analysis Principals?
The 3 _____________ are have a critical eye, know your business, and get behind the numbers
What are the 11 Sociocultural Factors?
Family demographics, generational demographics, other demographic categories, attitudes towards business, immigration patterns, ethical values, environmental attitudes, leisure time activities, educational attainment, work-ethic/work-family balance, convenience/time pressures are the _________________.
What are the 10 governmental/legal factors?
government regulations, tax laws and changes, lobbying efforts, government spending, foreign regulations, intellectual property rights, state, county, and municipal, import and export policy, general political climate, and government subsidies are the ________________.
What are the 8 technological factors?
computing, telecommunication, manufacturing, infrastructure, security, energy, work force skills, and macro R&D efforts are the _____________.
What is included in the Industry Analysis?
competitive rivalry, threat of buyers, threat of suppliers, new entrants, and substitutes
What are the advantages to competitive rivalry?
Product/service innovation, value, and long-term industry viability are advantages to _______.
What are the disadvantages to competitive rivalry?
lower revenue leading to price wars, customer choice, and “stolen” customers, higher costs leading to product development, customer service, and advertising are disadvantages to _____.
What are the 9 factors that increase rivalry?
numerous, equally balanced competitors; slow/zero/negative industry growth; high fixed costs and/or storage costs; low product differentiation; low switching costs; high strategic stakes; unevenly distributed subsidies; high exit barriers; and low within-industry market entry barriers are the ______________________.
What do buyers want that can hurt sellers?
____ want low prices and better quality and service that can hurt _________.
What makes a buyer more formidable?
Power and price sensitivity make a buyer more ________.
What are the 8 factors that increase the threat of buyers?
large volume orders, information availability, buyers could backward integrate, standardized products, low switching costs, high percentage buyer costs, operating losses, low impact goods and services are factors that increase _________.
What do suppliers want?
_______ want higher prices and lower quality.
What are 7 factors that increase the threat of suppliers?
few suppliers, high percentage of supplier profits, suppliers could forward integrate, industry health of low importance to suppliers, differentiated products, high switching costs, few viable substitutes are the 7 factors that increase _______.
What are the 8 factors that increase the threat of new entrants?
low economies of scale; low “network” effects; low buyer switching costs; low capital requirements; late mover benefits; access to distribution channels; high government subsidies and/or low regulations; welcoming incumbent response are the 8 factors that increase ______.
What are the 6 factors that increase threat?
less expensive options, high buyer price sensitivity, higher performance, low buyer switching costs, risk taking customers, low price/high performance trends are the factors that increase _______.
Name the groups that have 9 factors that increase the threat.
Rivalry has ___ factors that increase threat.
Name the groups that have 8 factors that increase the threat.
Threat of buyers, threat of new entrants have ____ factors that increase threat.
Name the groups that have 7 factors that increase the threat.
Threat of suppliers has ____ factors that increase threat
Name the groups that have 6 factors that increase the threat
Threat of substitutes have ___ factors that increase threat.
What is included in a competitor/complementor analysis?
strategic group maps, types, leveraging, and coopetition are included in the _______ analysis.
What is a strategic group map used for?
______ is used to identify and analyze clusters, identify key competitors (through clusters and s/w), and mobility barriers.
What is the purpose of mobility barriers?
the purpose of ___________ is to assess the variabililty of positioning moves, and predicting competitor analysis.
Describe how to construct a strategic group map.
To __________, select 2 critical variables in the industry and plot on an x and y axis, plan out other variables,
What kinds of variables should not be included in a strategic group map?
correlated or categorical variables should _______ be included in a _________.
What is a continuous variable?
a _________ is a number variable with full range. ex: sales price
What is a categorical variable?
a ________ stays within a category. ex: color of mascots
What kinds of variables should be included in a strategic group map?
continuous variables should be included in a _______________.
What should other variables in a SGM represent?
Other variables should represent Size, Shapes, Shadings, and Colors in a _____.
Can the selection of different variables create different maps?
The selection of different variable can create VERY different maps.
Define “triangulation”
_______ is using three points of definition
Define “proxy”
______ is a substitute for, “approximately”
Draw the Complementor Analysis Chart
Draw the Complementor Analysis Chart.
What are the types of Complementors?
Value producing, transaction, and value perception are types of _________.
What are value producing complementors?
_________ are complementors that increase the value of goods and services
What are transaction complementors?
_______ are complementors that enhance the exchange
What are value perception complementors?
______ are complementors that percieve more value
What is not considered complementory?
Internal groups and financial transactions are NOT considered _________.
What are ways to leverage complementors?
Possible cooperative strategies, possible expansions, and free-riding/piggybacking are ways to ___________.
What are some possible cooperative strategies?
strategic alliances, joint ventures, trade associations, lobbying efforts are examples of ___________.
What are some examples of possible expansions?
related diversification and vertical integration are examples of ______.
Define “coopetition”
______ is the simultaneous cooperation and competition
Coopetition creates _____ in many _____ relationships with competitors, suppliers, buyers, and complementors.
Coopetition creates duality in many interfirm relationships with __________.
Organizations compete to _____ a market, with entry barriers, differentiation, and cost leadership
Organizations compete to divide a market, with _______>
Organizations cooperate to _____ a market, with strategic alliances, joint ventures, distribution agreements.
Organizations cooperate to grow a market with ________.
Draw the Coopetition Matrix.
Draw the Coopetition Matrix
What is the relationship of coopetition to organizational performance?
The relationship between _____ and _____ is not clear and has mixed empirical results
Does coopetition have costs?
_____ has costs of time, expertise, capital, and opportunity
When do organizations engage in high levels of coopetition?
When there are adequate organizational resources, managerial capabilities, and urgent organizational performance needs, organizations engage in ______.
Draw the Coopetition Diagram
Draw the Coopetition Diagram.
Define “VRIO”
______ is value rarity inimitability organization
Define “core competence”
____ is how we create value/what we’re good at. The set of skills across an organization to exploit resources and produce added value.
Define “distinctive competence”
____ is the best thing we do better than others.
What are the four organizational outcome possibilities?
competitive disadvantage, competitive parity, competitive advantage, and sustainable competitive advantage are the _______.
What are the four Yes’s to SCA?
is there value to customers/organizations? is there rarity among competitors? is there inimitability for future companies? is there organization to fully exploit? are the four ____________.
