Final

Question 1

Macro-environment

Answer 1

includes all relevant factors and influences outside its boundaries

Question 2

strategically important factors

Answer 2

Direction
Objectives
Strategy
Business model

Question 3

Industry

Answer 3

a group of firms producing products that are close substitutes

Question 4

Driving Forces

Answer 4

major underlying causes of changing industry and competitive conditions.

Question 5

Industry’s Dominant Economic Traits

Answer 5

Market size and growth rate
Number of rivals
Scope of competitive rivalry
Buyer needs and requirements
Degree of product differentiation
Product innovation
Supply/demand conditions
Pace of technological change
Vertical integration
Economies of scale
Learning and experience curve effects

Question 6

Learning/experience effects

Answer 6

when a company’s unit costs decline as its cumulative production volume increases because of Accumulating production know-how, Growing mastery of the technology

Question 7

The bigger the learning or experience curve effect,

Answer 7

the bigger the cost advantage of the firm with the largest cumulative production volume

Question 8

How to find how strong competitive forces are

Answer 8

identify main sources of competitive forces and strength of these forces, use five forces model of competition

Question 9

porters five forces model

Answer 9

bargaining power of suppliers, threat of new entrants, bargaining power of buyers, and threat of substitute products

Question 10

Strategy

Answer 10

an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage

Question 11

Enterprise-level strategy

Answer 11

what do we stand for?

Question 12

corporate level strategy

Answer 12

what businesses do we hold in our portfolio

Question 13

business-level strategy

Answer 13

an integrated and coordinated set of commitments and actions designed to provide value to customers and gain a competitive advantage by exploiting core competencies in specific, individual product markets
asks how do we compete in this business?

Question 14

Cost Leadership

Answer 14

Integrated set of actions aimed at attaining low cost (relative to competitors) with acceptable features

Question 15

Differentiation

Answer 15

Integrated set of actions aimed at producing products that customers view as different in way(s) that are significant to them

Question 16

Focused low cost and differentiation

Answer 16

Integrated set of actions aimed at meeting the needs of a particular competitive segment

Question 17

Integrated Low-Cost/Differentiation Strategy

Answer 17

Integrated set of actions aimed at attaining both low cost and products that customers view as different in way(s) that are significant to them

Question 18

Competence

Answer 18

an activity that a company has learned to perform well

Question 19

Core Competence

Answer 19

a competitively important activity that a company performs better than other internal activities

Question 20

Distinctive Competence

Answer 20

a competitively important activity that a company performs better than its rivals and therefore represents a competitively superior resource strength

Question 21

4 Criteria of Sustainable Competitive Advantage

Answer 21

Rare
Valuable
Costly to Imitate
Nonsubstitutable

Question 22

Value Chain Analysis

Answer 22

Identify which resources and capabilities add value

Question 23

Strength

Answer 23

something a firm is good at doing or a characteristic that gives it an important capability (skills, expertise, resource, capability, or achievement)

Question 24

Weakness

Answer 24

something a company lacks or does poorly (in comparison to others) or a condition that puts it at a disadvantage

Question 25

opportunity

Answer 25

something in the environment that may be exploited to the firm’s advantage

Question 26

Threat

Answer 26

something in the environment that has the potential to reduce a firm’s performance or destroy its competitive advantage.