exam 2 Flashcards
Competitive advantage:
- providing greater value for customers than competitors can, ultimate outcome **
Combines theory
industrial organization economies
Threats of substitute
function product or service replaceable not from a direct competitor.
model framework:
clusters different firms into groups
Based on key strategy dimensions
example: design firm in a bigger company
RBV
- resource based view
- sees resources as key to superior firm performance
VRIO
not a firm level conducted for the firm resources
V: valuable
R: rare
I: cost to initiate
O: organized to capture the value of the resources/ capabilities
Differentiation strategy:
create higher value than competitors
Charge higher prices
Keep the cost structure
Offer services with unique offerings
S curve pattern of innovation:
slow initial progress, then rapid progress, then slow again as tech matures and reaches its limit in the market; tech improves in performance, bc of new design or new materials & new generations
Tech cycle:
birth of new tech, ends when that tech reaches its limit and is replaced
Innovation streams:
patterns of innovation over time that can create sustainable competitive advantage
Tech discontinuity:
unique combo of existing tech that creates a significant breakthrough in performance or function
Discontinuous change:
tech substitution & design competition
Dominant design:
new accepted market standard for tech, failing to adopt this dom design may result in tech lockout
Incremental design:
altering the dominant design by lowering costs & improving functions
Organizational decline:
occurs when orgs don’t recognize need for change
5 stages of organizational decline:
Blinded, Inaction, Faulty action, Crisis, Dissolution
Trade barriers:
gov imposed regulations that increase the cost & restricts # of imported goods, for example a tariff
International agreements:
GATT: general agreement on tariffs & trades
Reduces tariffs, limits gov subsidies, protects intellectual property
WTO: world trade organization
Deals with global rules of trade between nations & ensures that trade flows smoothly and predictably
Regional agreements
areas in which barriers on trade between countries are reduced
ex: NAFTA: north american free trade agreement
MNC strategies:
global consistency & local adaption
the 8 entry modes of international business
exporting, cooperative contract, licensing, franchise, strategic alliance, joint venture, wholly owned affiliates, global new ventures
cooperative contract
foreign business owner pays a company a fee for the right to conduct that business in the respective country
strategic alliance
companies combine key resources, costs,risks, tech, & people
joint venture
2 existing companies collab to make a third company
wholly owned affiliates:
foreign offices facilities that are wholly controlled by a parent company
hofsmede’s dimensions:
Cultural differences like:
Power difference
Individualism vs collectivism
Uncertainty avoidance
Long term orientation
Indulgence
Four concepts for organizations vertical structure:
Work specialization : division of labor
Authority: chain of command
Hierarchy : span of mgm
Centralization: decision making
Departmentalization:
method of subdividing work and workers into separate organizational units that take responsibility for completing particular tasks
Divisional approach:
when departments are grouped together based on similar organizational outputs or called m-form (multidivisional form)
Matrix approach
combines function and divisional approaches, improves coordination & information, & dual lines of authority
- doesn’t respond to unity of command as it has dual lines of authority
3 Job redesign: types
Rotation: periodically moving workers from one specialized job to another
Enlargement: increase # of different tasks that a worker performs in one job
Enrichment: increasing the # of tasks and giving authority and control to that worker to make meaningful decisions
5 Job characteristics:
Skill variety
Task identity
Task significance
Autonomy
Feedback
Work teams & purpose:
small # of people that are mutually accountable for:
Achieving performance goals
Improving independent work processes
Helping firms in responding to specific problems & challenges
Team characteristics:
Norms
Cohesiveness
Conflict
conflict type c
Cognitive: c-type: focus on problem related differences of opinion
conflict type a
Affective: a-type: emotional reactions that occur due to personal disagreements
Team conflict tools:
Superordinate goals
Mediation
Negotiation
special types of teams:
Cross functional: composed of employees from different functional areas of organizations
Virtual: composed of geographically or organizationally dispersed coworkers
Project: crested to complete a one time projects with limited time
Autonomy types of teams:
semi autonomous, self managing and self designing
semi autonomous type team:
all have partial autonomy /decision making power and solving problems related to a task of producing a product
minority domination:
one or two people dominate team discussions
Social loafing:
withhold their efforts and fail to perform their share
