Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

4490 Capstone > Exam 2 > Flashcards

Exam 2 Flashcards

1
Q

Business level strategy

A

Goal directed actions managers take in their quest for competitive advantage when competing in a single product market

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Strategic tradeoffs

A

Choices between a cost or value position; necessary because higher value tends to generate higher cost

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Differentiation strategy

A

Generic business strategy that seeks to create higher value for customers than the value that competitors create

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Cost leadership strategy

A

Generic business strategy that seeks to create the same or similar value for customers at a lower cost

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Scope of competition

A

The size (narrow or broad) of the market in which the firm chooses to compete

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Focused strategy

A

Narrow competitive scope

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Economies of scope

A

Savings that come form producing 2 or more outputs at less cost than producing each output individually despite using same resources/technology

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Economies of scale

A

Decreases in cost per unit as output increases

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Minimum efficient scale (MES)

A

Output range needed to bring down the cost per unit as much as possible, allowing a firm to stake out the lowest cost position that is achievable through economies of scale

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Diseconomies of scale

A

Increases in cost per unit when output increases

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Blue ocean strategy

A

Business level strategy that successfully combines differentiation and cost leadership activities using value innovation to reconcile the inherent tradeoffs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Value innovation

A

Simultaneous pursuit of differentiation and low cost in a way that creates a leap in value for both the firm and the consumers; considered a cornerstone of blue ocean strategy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Value curve

A

Horizontal connection of the points of each value on the strategy canvas that helps strategists diagnose and determine courses of action

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Strategy canvas

A

Graphical depiction of a company’s relative performance vis a vis its competitors across the industry’s key success factors

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Invention

A

Transformation of an idea into a new product/process or the modification and recombination of existing ones

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Patent

A

A form of intellectual property that gives the inventor exclusive rights to benefit from commercializing a technology for a specified time period in exchange for public disclosure of the underlying idea

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Trade secret

A

Valuable proprietary information that is not in the public domain and where the firm makes every effort to maintain its secrecy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Innovation

A

Commercialization of any new product/process or recombination/modification of existing ones

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

First mover advantage

A

Competitive benefits that accrue to the successful innovator

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Entrepreneurship

A

Process by which people undertake economic risk to innovate

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Industry life cycle

A 
Introduction
Growth
Shakeout
Maturity
Decline
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Network effects

A

Positive effect (externality) that one user of a product provides for the value of the service to another user

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Standard

A

Agreed upon solution about a common set of engineering features and design choices

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Product innovation

A

New or recombined knowledge embodied in new products

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Process innovation
New ways to produce existing products or deliver existing services
26
Crossing the chasm framework
Model that shows how each stage of the industry life cycle is dominated by a different customer group
27
Markets and technology framework
Model to categorize innovations along the market (existing/new) and technology (existing/new) dimensions
28
Incremental innovation
Existing tech | Existing market
29
Radical innovation
New tech | New mkt
30
Architectural innovation
New market | Existing tech
31
Disruptive innovation
New tech | Existing market
32
Winner take all markets
Markets where the leader captures almost all market share and is able to extract much of the value created
33
Innovation ecosystem
Firm embedded in a complex network of suppliers, buyers and complementers; requires interdependent strategic decision making that can lead to incremental innovations
34
Reverse innovation
Innovation developed for emerging economies before being introduced in developed economies
35
Open innovation
Framework for R&D that proposes permeable firm boundaries to allow a firm to benefit from both internal and external ideas and inventions; sharing goes both ways
36
Absorptive capacity
Firm's ability to understand external technology developments, evaluate them, and integrate them into current products or create new ones
37
Corporate strategy
Decisions that senior management make and the goal-directed actions it takes to gain and sustain competing advantage in several industries and markets simultaneously
38
Transaction costs
All internal and external costs associated with an economic exchange, whether within a firm or in markets
39
Transaction cost economies
Framework to predict boundaries of the firm, which is important to forming a corporate strategy that leads to competitive advantages
40
External transaction costs
Costs of searching for a firm/individual to contract, and then negotiating, monitoring and enforcing the contract
41
Internal transaction costs
Costs pertaining to organizing an economic exchange within a hierarchy (administrative costs)
42
Principal agent problem
KNOW THIS ONE
43
Information asymmetry
KNOW THIS ONE
44
Strategic alliances
Voluntary arrangements between firms that involve the sharing of knowledge, resources, and capabilities with the intent of developing processes, products or services
45
Licensing
Form of long-term contracting in the manufacturing sector that enables firms to commercialize intellectual property
46
Franchising
A long term contract in which a franchisor grants a franchisee the rights to use the franchisor's trademark and business processes to offer goods and services that carry the franchisor's brand name
47
Credible commitment
Long term strategic decision that is both difficult and costly to reverse
48
Joint venture
Stand alone organization created and jointly owned 2 or more parent companies
49
Vertical integration
Firm's ownership of its production/distribution (inputs/outputs)
50
Industry value chain
Describes transformation of raw materials into finished goods and services along distinct vertical stages
51
Specialized assets
Unique assets with high opportunity cost | Site specificity, physical-asset specificity, human-asset specificity
52
Vertical market failure
When markets along the industry value chain are too risky, and alternatives are too costly in time or money
53
Taper integration
Vertically integrated but also relies on outside-market firms
54
Strategic outsourcing
Moving one or more internal value chain activities outside the firm's boundaries to other firms in the industry value chain
55
Diversification
Increase in the variety of products and services a firm offers or markets and the geographic regions in which it competes
56
Product diversification strategy
Corporate setting in which a firm is active in several different product markets
57
Geographic diversification strategy
Corporate strategy in which a firm is active in several different countries
58
Product market diversification strategy
Corporate strategy in which a firm is active in several different product markets and several different communities
59
Related diversification strategy
Corporate strategy in which a firm derives less than 70% of its revenues from a single business activity and obtains revenues from other lines of businesses that are linked to the primary business activity
60
Related-constrained diversification
Related diversification where executives only pursue businesses where they can apply the resources and core competencies already available in the primary business
61
Related-linked diversification strategy
Kind of related diversification strategy in which executives pursue business opportunities that share only a limited number of linkages
62
Unrelated diversification strategy
Corporate strategy in which firm derives less than 70 percent of revenues from a single business and there are few if any linkages between businesses
63
Conglomerate
Follows unrelated diversification strategy
64
Core competence market matrix
Framework to guid corporate diversification strategy by analyzing combos of new/existing core competencies and markets
65
Diversification discount
Situation in which the price of highly diversified firms is valued at less than the sum of individual business units
66
Diversification premium
Stock price is valued at greater than sum of business unit parts
67
Growth share matrix
Question mark Dog Star Cash cow
68
Build borrow or buy framework
Model that aids firms in deciding how to obtain new resources (internal development, alliance, acquisition)
69
Relational view of competitive advantage
Strategic management framework that proposes that critical resources and capabilities frequently are embedded in strategic alliances that span firm boundaries
70
Real options perspective
Approach to strategic decision making that breaks down a larger investment decision into a set of smaller decisions that are staged sequentially over time
71
Co-opetition
Cooperation by competitors to active a strategic objective
72
Learning races
Situations in which both partners in a strategic alliance are motivated to form an alliance for learning , but the rate at which the firms learn may vary
73
Non equity alliance
Partnership based upon contracts between firms
74
Equity alliance
Partnership in which at least one partner has partial ownership stake in the other
75
CVC corporate venture capital
Equity investments by established firms in entrepreneurial ventures (an equity alliance)
76
Alliance management capabilities
Firm's ability to effectively mange 3 alliance related tasks concurrently: Partner selection and alliance formation Alliance design and governance Post formation alliance management
77
Merger
Joining of two independent companies into a combined entity
78
Acquisition
Purchase/takeover of one company by another
79
Horizontal integration
Process of merging with competitors, leading to industry consolidation
80
Managerial hubris
Form of self delusion in which managers convince themselves of their superior skills in the face of clear evidence to the contrary

4490 Capstone (2 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions