EXAM 3 STUDY CARDS

Question 1

What is strategy?

Answer 1

A long-term plan for achieving goals

Question 2

Formulation & Implementation

Answer 2

Formulation: Deciding what to do
Implementation: Performing activities necessary to do what is planned

Question 3

Difference between corporate and business strategy

Answer 3

Corporate:

Business: Ways a firm goes about achieving objectives

Question 4

Cost-leadership and differentiation strategy

Answer 4

Cost-leadership: Firms that use this strategy seek to make their P&S at the lowest cost compared to their competitor while maintaining quality.

Differentiation: Set of actions designed to produce/deliver goods or services that customers perceive differently that benefit them.

Question 5

International Strategy

Answer 5

Using corporate strategy to guide choices of which markets a firm competes in

Question 6

Importing, Outsourcing, and Offshoring

Answer 6

Importing: Sale of P&S in one country that are sourced in another country
Outsourcing: Contracting with third parties to do some of a company’s work on its behalf
Offshoring: Taking some business function out of the company’s country origin to perform in another

Question 7

Vision and Mission statements / Organizational Values

Answer 7

Vision: Future-oriented declaration of an organization’s purpose and aspirations

Mission: Statement of purpose that describes who the company is and what it does

Question 8

SWOT Analysis

Answer 8

Strengths
Weaknesses
Opportunities
Threats

Question 9

Difference between global, multi-domestic, and transnational strategy

Answer 9

Global: Home office centralizes & controls decision-making authorities

Multi-Domestic: Maximizes local responsiveness by giving decision-making authority to local businesses to create P&S optimizes to their local market

Transnational: Combines firm-wide operating efficiencies and core competencies with local responsiveness tailored to difference countries

Question 10

What are the 5 KEY elements of the strategy diamond?

Answer 10

Arenas
Differentiators
Vehicles
Staging
Economic Logic

Question 11

What is entrepreneurship?

Answer 11

Recognition of opportunities and the use of creation of resources

Question 12

Entrepreneurship Process

Answer 12

1. Identify Opportunities
2. Plan and prepare, and venture
3. Resource the venture and take action

Question 13

Truths & Myths about entrepreneurship

Answer 13

Truths:
- Work hard & are driven
- See cup half full
- Strive for integrity
- Burn with competitive desire to win
- Dissatisfied with the status quo and seek opportunities
- Use failure as a learning tool
- Believe they can make a difference

Myths:
- They are born, not made
- Make more money
- Being original is essential
- It takes a lot of money
- Must be risk takers

Question 14

Difference between entrepreneurship and intrapreneurship

Answer 14

Entrepreneurship: Recognizes opportunities

Intrapreneurship: Takes place in a business that already exists

Question 15

Social Entrepreneurship

Question 16

Born-global Firms

Answer 16

(Global Start-Up) is an organization that seeks significant competitive advantage from the use of resources of and sales of outputs in multiple countries

Question 17

Difference between Angel Investor and Venture Capitalist

Question 18

Types of Planning

Answer 18

Strategic: Long-range planning typically 3 years or more setting a plan to compete effectively

Tactical: 1 to 3 years and specifies fairly concrete ways to implement a plan

Operational: Short-range planning that takes organizational-wide strategic & tactical plans and specifies concrete action steps to achieve those plans

Question 19

POLC Framework

Answer 19

Planning
Organizing
Leading
Controlling

Question 20

Research and Development (R&D) - Why is it important?

Answer 20

Research identifies new knowledge and ideas and development turns those ideas into tangible products or processes

Question 21

What is involved in innovation?

Question 22

Process innovation and open innovation

Answer 22

Process Innovation: Implementing a new or significantly improved process

Open Innovation: Generates new business ideas through employee input beyond a company’s R&D

Question 23

Components of Intellectual Property

Answer 23

Patents
Trademarks
Trade Secrets
Copyrights
Licensing

Question 24

Identify examples of: Patents, trademarks, trade secrets, copyrights, and licensing

Question 25

Purpose of the World Intellectual Property Organization (WIPO)

Answer 25

• Seeks to harmonize national intellectual property legislation & procedures
• Provide services for international applications for industrial property rights
• Exchange intellectual property information
• Provide legal & technological assistance
• Facilitate the resolution of private IP disputes
• Marshal information technology as a tool for storing, accessing, and using valuable IP info

Question 26

Components of Global Marketing (4 P’s)

Answer 26

Product
Price
Promotion
Place

Question 27

Importance of Global Sourcing

Answer 27

Buying raw material and/or components that go into a company’s product from around the world

Question 28

Distribution Management - what is it?

Answer 28

Channels less developed markets in hopes to seek novel solutions for distributing their products

Question 29

Advantages and disadvantages of multi-sourcing

Answer 29

Advantages:
- More flexibility in distribution time
- Negotiates lower rates
- Switch between suppliers with minimal downside loss of time or resources

Disadvantages:
- Quality across suppliers may be less uniform
- Less influence with each supplier
- Higher coordination and management costs

Question 30

Differences between outsourcing and offshoring

Answer 30

Offshoring differs from Outsourcing in that the firm retains control of operations and directly hires the employees.

Question 31

Supply-Chain Management

Answer 31

Planning & management of all activities involved in sourcing, procurement, conversion, and logistics

Question 32

Stock-Out & Safety Stock

Answer 32

Stock-Out: No more stock of the company’s product

Safety Stock: Inventory that the company holds to ensure that it wont run out during a delay or crisis