Exam 1 Vocab

Question 1

Operational Effectiveness

Answer 1

doing similar activites better than competitors

Question 2

Competitive Strategy

Answer 2

Doing different activites from rivals or similar ones in different ways

Question 3

Strategy

Answer 3

establishing and sustaining a unique position; creating fit among activites

Question 4

Types of strategic positions

Answer 4

Variety-based, needs-based, accessed-based

Question 5

Variety-Based positioning

Answer 5

Producing subset or products

Question 6

Needs-based positioning

Answer 6

Serving needs of particular group

Question 7

Accessed-based positioning

Answer 7

finding different ways to access customers

Question 8

Trade-offs

Answer 8

doing more of one thing and less of another

Question 9

strategic advantage

Answer 9

Way of doing things that makes company more successful than others; coherent whole, greater than sum of individual activites

Question 10

What are the 3 types of fit

Answer 10

Simple consistency, reinforcing fit, optimization of effort

Question 11

Simple Consistency

Answer 11

fit between activities and overall strategy

Question 12

Reinforcing fit

Answer 12

fit among activities themselves

Question 13

Optimization of effort

Answer 13

fit with activites and high order goals and objectives

Question 14

Value Chain Framework

Answer 14

maps out how activites fit together

Question 15

Strategic group

Answer 15

group of firms that compete on similar strategies that differ from other groups

Question 16

4 key elements of strategy formulation

Answer 16

1. company strengths and weaknesses
2. personal values of key implementers
3. industry opportunities
4. Broad social expectations

Question 17

Competitive disadvantage

Answer 17

firm gets profit below average industry profit level

Question 18

Competitive parity

Answer 18

obtains profit at average profit leve

Question 19

Temporary competitive advantage

Answer 19

profit above industry average for short period of time

Question 20

Sustained competitive advantage

Answer 20

profit above industry average for long time

Question 21

Distinctive competencies

Answer 21

firm specific resources that give it value-enhancing strategies

Question 22

Business level strategy

Answer 22

plan to use firm resources and distinctive competencies to gain competitive advantage

Question 23

Focused Cost-leadership strategy

Answer 23

offers low priced products to one group of customers

Question 24

Cost leadership strategy

Answer 24

offers low priced products to many customers

Question 25

Focused differentiation strategy

Answer 25

offers unique products to one group of customers

Question 26

Differentiation Strategy

Answer 26

offers unique products to many customers

Question 27

What are the stages of the industry life cycle

Answer 27

embryonic, growth, stakeout, maturity, decline

Question 28

What are the types of business strategies

Answer 28

Focused Cost-leadership, cost leadership, focused differentiation, differentiation

Question 29

What are the generic business strategies

Answer 29

Product differentiation, market segmentation, distinctive competencies

Question 30

What are the 5 Forces Frame Work

Answer 30

Threat of new entrants, bargaining power of suppliers, bargaining power of buyers, threat of substitutes, industry rivalry

Question 31

What is Resource-Based View

Answer 31

Suggested by Barney that firms should look inward to find sources of competitive advantage

Question 32

Low-cost strategy

Answer 32

minimizing operational costs to offer products at a lower price than competitors

Question 33

Hill’s contingency framework

Answer 33

Combining differentiation with low-cost strategies depending on environment