final exam Flashcards
types of stakeholders
capital market, product market, organizational
3 parts of external environment that affect strategic action
general environment, industry environment, competition environment
sources of competitive advantage
core competencies
definition of industry
group of firms producing substitute products
segments of general environment
demographic, economic, political/legal, sociocultural, technological, global, sustainable physical environment,
5 business level strategies
cost leadership, differentiation, focus, integrated cost leadership/ differentiation
market commonality
number of markets with which firm and competitors are involved and degree of importance of individuals markets to each
why is product quality important
firm looks credible in eyes of consumer, and can predict declines in competitors revenue if their quality sucks
types of competitive action
strategic and tactical
types of corporate level strategies
diversification
motivation for diversification
antitrust regulation and tax laws, low performance, uncertain future cash flows, synergy and firm risk reduction
three main restructuring strategies
downsizing, downscoping, leveraged buyouts
international strategy and its focus
both business and corporate level. at business level firms use generic level strategies (Cost leadership etc). at corporate level its multi-domestic, global, and transnational international strategies
different kinds of strategic alliances
joint venture, equity, non-equity
how can competition be reduced?
tacit collusion, mutual forbearance
