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Strategic Management > Exam 2 > Flashcards

Exam 2 Flashcards

0
Q

Competitive Rivalry

A

the ongoing set of competitive actions and competitive responses that occur among firms as they maneuver for an advantageous market position.

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1
Q

Competitors

A

firms operating in the same market, offering similar products, and targeting similar customers.

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2
Q

Competitive Behavior

A

the set of competitive actions and responses a given firm takes to build or defend its competitive advantages and to improve its market position

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3
Q

Multimarket Competition

A

occurs when firms compete against each other in several product or geographic markets

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4
Q

Competitive Dynamics

A

refer to all competitive behaviors–that is, the total set of actions and responses taken by all firms competing within a market

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5
Q

market commonality

A

concerned with the number of markets with which the firm and a competitor are jointly involved and the degree of importance of the individual markets to each.

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6
Q

Resource Similarity

A

is the extent to which the firm’s tangible and intangible resources are comparable to a competitors in terms of both type and amount.

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7
Q

Competitive Action

A

a strategic of tactical action the firm takes to build or defend its competitive advantages or improve its market position

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8
Q

Competitive Response

A

a strategic or tactical action the firm takes to counter the effects of a competitor’s competitive action

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9
Q

Strategic Action/Strategic Response

A

market based move that involves a significant commitment of organizational resources and is difficult to implement and reverse

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10
Q

Tactical Action/ Tactical Response

A

market based move that is taken to fine-tune a strategy; it involves fewer resources and is relatively easy to implement and reverse

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11
Q

First Mover

A

firm that takes an initial competitive action in order to build or defend its competitive advantages or to improve its market position

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12
Q

Second Mover

A

firm that responds to the first movers competitive action, typically through imitation.

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13
Q

Late Mover

A

firm that responds to a competitive action a significant amount of time after the 1st mover’s action and 2nd mover’s response.

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14
Q

Quality

A

exists when the firms’ goods or services meet or exceed customers’ expectations

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15
Q

Slow Cycle Markets

A

markets in which the firm’s competitive advantages are shielded from imitation, commonly for long periods of time, and where imitation is costly

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16
Q

Fast Cycle Markets

A

markets in which the firms capabilities that contribute to competitive advantages aren’t shielded from imitation and where imitation is often rapid and inexpensive.

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17
Q

Standard Cycle Market

A

markets in which the firm’s competitive advantages are partially shielded from imitation and imitation is moderately costly.

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18
Q

Corporate Level Strategy

A

specifies actions a firm takes to gain a competitive advantage by selecting and managing a group of different businesses competing in different product markets

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19
Q

Economies of Scope

A

cost savings that the firm creates by successfully sharing some of its resources and capabilities or transferring one or more corporate level core competencies that were developed in one of its businesses to another of its businesses

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20
Q

Corporate Level Core Competencies

A

complex sets of resources and capabilities that link different businesses, primarily through managerial and technological experience, and expertise.

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21
Q

Market Power

A

exists when a firm is able to sell its products above the existing competitive level or to reduce the costs of its primary and support activities below the competitive level, or both.

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22
Q

Multipoint Competition

A

exists when two or more diversified firms simultaneously compete in the same product areas or geographical markets.

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23
Q

Vertical Integration

A

exists when a company produces its own inputs (backward integration) or owns its own source of output distribution(forward integration)

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24
Q

Financial Economies

A

cost savings realized through improved allocations of financial resources based on investments inside or outside the firm.

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25
Q

Synergy

A

exists when the value created by business units working together exceeds the value that those same units create working independently

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26
Q

Merger

A

a strategy through which two firms agree to integrate their operations on a relatively co-equal basis

27
Q

Acquisition

A

strategy through which one firm buys a controlling, or 100%, interest in another firm with the intent of making the acquired firm a subsidiary business within its portfolio

28
Q

Takeover

A

special type of acquisition wherein the target firm does not solicit the acquiring firms bid, thus, takeovers are unfriendly acquisitions.

29
Q

Restructuring

A

strategy through which a firm changes its set of businesses or its financial structure

30
Q

Downsizing

A

a reduction in the # of a firm’s employees and, sometimes, in the number of its operating units. It may or may not change the composition of the company’s portfolio

31
Q

Downscoping

A

divestiture, spin-off, or some other means of eliminating businesses that are unrelated to a firm’s core business. It has a more positive effect on firm performance than downSIZING.

32
Q

Leveraged Buyouts (LBO)

A

restructuring strategy whereby a party (typically a private equity firm) buys all of a firm’s assets in order to take the firm private. *most to restructure firm, some to build firm resources & expand.

33
Q

International Strategy

A

strategy through which the firms sells its goods or services outside its domestic market.

34
Q

multidomestic strategy

A

international strategy in which strategic and operating decisions are decentralized to the strategic business units in individual countries or regions for the purpose of allowing each unit the opportunity to tailor products to the local market.

35
Q

Global Strategy

A

A global strategy is an international strategy in which a firms’ home office determines the strategies that business units are to use in each country or region.

36
Q

Transnational Strategy

A

an international strategy through which the firm seeks to achieve both global and local responsiveness.

37
Q

Liability of Foreigness

A

a set of costs associated with various issues firms face when entering foreign markets

38
Q

Regionalization

A

ie; NAFTA, OAS, EU, etc.

39
Q

Exporting

A

an entry mode through which the firm sends products it produces in its domestic market to international markets. Popular entry mode.

40
Q

Licensing

A

entry mode in which an agreement is formed that allows a foreign company to purchase the right to manufacture and sell a firm’s products within a host country’s market or a set of host countries’ markets

41
Q

Strategic Alliance

A

entry mode among firms using international strategies… it finds a firm collaborating wiht another company in a different setting in order to enter one or more international markets.

42
Q

Acquisitions/”Cross-Border Acquisition”

A

entry mode through which a firm from one country acquires a stake in or purchases all of a firm located in another country.

43
Q

Greenfield Venture

A

entry mode through which a firm invests directly in another country or market by establishing a new wholly owned subsidiary.

44
Q

Political Risks

A

denote the probability of disruption of multinational enterprises by political forces or events whether they ocur in host countries, home countries, or result from changes in the international environment.

45
Q

Economic Risks

A

include fundamental weaknesses in a country or region’s economy with the potential to cause adverse effects on firms’ efforts to successfully implement their international strategies.

46
Q

International Diversification Strategy

A

strategy through which a firm expands the sales of its goods or services across the borders of global regions and countries into a potentially larger number of geographic locations or markets.

47
Q

Cooperative Strategy

A

means by which firms collaborate for the purpose of working together to achieve a shared objective. AKA collaborative or relational advantage.

48
Q

Strategic Alliance

A

cooperative strategy in which firms combine some of their resources and capabilities for the purpose of creating a competitive advantage.

49
Q

Joint Venture

A

strategic alliance in which two or more firms create a legally independent company to share some of their resources and capabilities for the purpose of developing a competitive advantage

50
Q

Equity Strategic Alliance

A

Alliance in which two firms own different percentages of the company they have formed by combining some of their resources and capabilities for the purpose of creating a competitive advantage.

51
Q

Non-Equity Strategic Alliance

A

alliance in which two or more firms develop a contractual relationship to share some of their resources and capabilities for the purpose of creating a competitive advantage.

52
Q

Business Level Corporate Strategy

A

A strategy though which firms combine some of their resources and capabilities for the purpose of creating a competitive advantage by competing in one or more product markets

53
Q

Complimentary Strategic Alliances

A

business level alliances in which firms share some of their resources and capabilities in complimentary ways for the purpose of creating a competitive advantage.

54
Q

Vertical Complementary SA’s

A

Firms share some of their resources and capabilities from different stages of the value chain for the purpose of creating a competitive advantage.

55
Q

Horizontal Complementary Strategic Alliance

A

an alliance in which firms share some of their resources and capabilities from the same stage(or stages) of the value chain for the purpose of creating a competitive advantage.

56
Q

Explicit Collusion

A

when two or more firms negotiate directly to jointly agree about the amount to produce as well as the prices for what is produced.

57
Q

Tacit Collusion

A

exists when several firms in an industry indirectly coordinate their production and pricing decisions by observing each others’ competitive actions and responses.

58
Q

Mutual Forbearance

A

form of tacit collusion in which firms do not take competitive actions against rivals they meet in multiple markets.

59
Q

Corporate level Strategies

A

strategy through which a firm collaborates with one or more companies for the purpose of expanding its operations.

60
Q

Diversifying Strategic Alliance

A

a strategy in which firms share some of their resources and capabilities to engage in product and/or geographic location.

61
Q

Synergistic Strategic Alliances

A

strategy in which firms share some of their resources and capabilities to create economies of scope.

62
Q

Franchising

A

strategy in which a firm (the franchisor) uses a franchise as a contractual relationship to describe and control the sharing of its resources and capabilities with its partners (franchisees).

63
Q

Cross-Border SA’s

A

strategy in which firms with headquarters in different countries decide to combine some of their resources and capabilities for the purpose of creating a competitive advantage.

64
Q

Network Cooperative Strategy

A

strategy wherein several firms agree to form multiple partnerships for the purpose of achieving shared objectives.

65
Q

Stable Alliance Network

A

formed in mature industries where demand is relatively constant and predictable. Through this network, firms try to expand their competitive advantages to other settings while continuing to profit from operation in their core, relatively mature industries.

66
Q

Dynamic Alliance

A

used in industries with short product life cycles. In these networks, partners typically explore new ideas and possibilities with the potential to lead to product innovations, entries into new markets, etc.

Strategic Management (3 decks)

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