exam 2

Question 1

Competitive advantage:

Answer 1

• providing greater value for customers than competitors can, ultimate outcome **

Question 2

Combines theory

Answer 2

industrial organization economies

Question 3

Threats of substitute

Answer 3

function product or service replaceable not from a direct competitor.

Question 4

model framework:

Answer 4

clusters different firms into groups
Based on key strategy dimensions
example: design firm in a bigger company

Question 5

RBV

Answer 5

• resource based view
• sees resources as key to superior firm performance

Question 6

VRIO

Answer 6

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

Question 7

Differentiation strategy:

Answer 7

create higher value than competitors
Charge higher prices
Keep the cost structure
Offer services with unique offerings

Question 8

S curve pattern of innovation:

Answer 8

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

Question 9

Tech cycle:

Answer 9

birth of new tech, ends when that tech reaches its limit and is replaced

Question 10

Innovation streams:

Answer 10

patterns of innovation over time that can create sustainable competitive advantage

Question 11

Tech discontinuity:

Answer 11

unique combo of existing tech that creates a significant breakthrough in performance or function

Question 12

Discontinuous change:

Answer 12

tech substitution & design competition

Question 13

Dominant design:

Answer 13

new accepted market standard for tech, failing to adopt this dom design may result in tech lockout

Question 14

Incremental design:

Answer 14

altering the dominant design by lowering costs & improving functions

Question 15

Organizational decline:

Answer 15

occurs when orgs don’t recognize need for change

Question 16

5 stages of organizational decline:

Answer 16

Blinded, Inaction, Faulty action, Crisis, Dissolution

Question 17

Trade barriers:

Answer 17

gov imposed regulations that increase the cost & restricts # of imported goods, for example a tariff

Question 18

International agreements:

Answer 18

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

Question 19

Regional agreements

Answer 19

areas in which barriers on trade between countries are reduced
ex: NAFTA: north american free trade agreement

Question 20

MNC strategies:

Answer 20

global consistency & local adaption

Question 21

the 8 entry modes of international business

Answer 21

exporting, cooperative contract, licensing, franchise, strategic alliance, joint venture, wholly owned affiliates, global new ventures

Question 22

cooperative contract

Answer 22

foreign business owner pays a company a fee for the right to conduct that business in the respective country

Question 23

strategic alliance

Answer 23

companies combine key resources, costs,risks, tech, & people

Question 24

joint venture

Answer 24

2 existing companies collab to make a third company

Question 25

wholly owned affiliates:

Answer 25

foreign offices facilities that are wholly controlled by a parent company

Question 26

hofsmede’s dimensions:

Answer 26

Cultural differences like:
Power difference
Individualism vs collectivism
Uncertainty avoidance
Long term orientation
Indulgence

Question 27

Four concepts for organizations vertical structure:

Answer 27

Work specialization : division of labor
Authority: chain of command
Hierarchy : span of mgm
Centralization: decision making

Question 28

Departmentalization:

Answer 28

method of subdividing work and workers into separate organizational units that take responsibility for completing particular tasks

Question 29

Divisional approach:

Answer 29

when departments are grouped together based on similar organizational outputs or called m-form (multidivisional form)

Question 30

Matrix approach

Answer 30

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

Question 31

3 Job redesign: types

Answer 31

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

Question 32

5 Job characteristics:

Answer 32

Skill variety
Task identity
Task significance
Autonomy
Feedback

Question 33

Work teams & purpose:

Answer 33

small # of people that are mutually accountable for:
Achieving performance goals
Improving independent work processes
Helping firms in responding to specific problems & challenges

Question 34

Team characteristics:

Answer 34

Norms
Cohesiveness
Conflict

Question 35

conflict type c

Answer 35

Cognitive: c-type: focus on problem related differences of opinion

Question 36

conflict type a

Answer 36

Affective: a-type: emotional reactions that occur due to personal disagreements

Question 37

Team conflict tools:

Answer 37

Superordinate goals
Mediation
Negotiation

Question 38

special types of teams:

Answer 38

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

Question 39

Autonomy types of teams:

Answer 39

semi autonomous, self managing and self designing

Question 40

semi autonomous type team:

Answer 40

all have partial autonomy /decision making power and solving problems related to a task of producing a product

Question 41

minority domination:

Answer 41

one or two people dominate team discussions

Question 42

Social loafing:

Answer 42

withhold their efforts and fail to perform their share