FINALS Flashcards
According to Mintzberg and Quinn, a __________ is the pattern or plan that integrates a nation’s or organization’s major goals, policies and action sequences into a chosen whole
Strategy
__________________________ is the way or plan of attaining technological goals and technological changes. These are formulated at the national level and at the enterprise level.
Technology Strategy
Externalization-Oriented Strategy. This strategy aims at seeking technological development with an objective to tap external market.
Technology Strategy at National level
Under this strategy, there is a restricted role for FDI. This strategy seeks to foster/encourage indigenous technology development i.e., developing domestic technology capabilities in general or in selected strategic industries.
Technology Strategy at National level
some examples of this type of strategy are:
1. minority joint ventures (with minor share to foreign collaborator)
2. technological assistance to domestic firms
3. encouraging import of capital goods
According to Bentz, Martino & Mintzberg, this means “a formal set of enterprise intentions that allocates available resources and sets priorities based on clearly stated technological and enterprise objectives and a perceived environment in which the process is to be embedded.
Technology Strategy at Enterprise level
re: Factors that influence enterprise’s technology strategy
_________________ : technological leadership can be sustained only if competitors cannot copy it
Sustainability of technological lead
re: Factors that influence enterprise’s technology strategy
First mover advantages: enterprise gets many advantages like _____________
increased reputation, pre-empting competition, early profits, new sales, etc.
re: Factors that influence enterprise’s technology strategy
First mover disadvantages: certain disadvantages and risks can adversely affect the first mover like _________
cost of regulatory approvals, cost of educating buyers, demand uncertainty, low cost imitation by competitors, risk of technological discontinuities of existing technology/products/processes
Based on factor analysis, an enterprise may adopt any of the following technology strategies:
Technology leadership strategy
Technology followership strategy
Under this strategy, a firm seeks to be the first to introduce technological changes/innovations
technology leadership strategy
A conscious & active strategy, by which a firm chooses not to be first on innovations
Technology followership strategy
The ______________________ framework directly influences technology generation in a nation
government technology policy
___________ depends upon the technology strategy of the organization/enterprise
technology generation
_______________________ sets the direction for technology development in the organization and to some extent also influences technological strategies of competitors as well
Technology strategy of the organization
Technology develops through a process of _____________, ___________________, and _______________.
Creativity, invention, innovation
re: S Curve of Technology Evolution
What are the 4 major stages in the evolution of performance characteristics?
- Emergence
- Rapid Improvement
- Declining Improvement
- Maturity
___________________: when the new technology comes into existence, but shows little improvement in its performance characteristics
Emergence
_______________: when performance characteristics improve at an accelerating pace
Rapid Improvement
________________: when the pace of improvement declines
Declining Improvement
______________: when further improvements become very difficult to achieve
Maturity
Why does the S Churve Shape of Technological Evolution occur?
- Learning process
- Technology limits
- Performance of the newer technology is lower than that of the older technology
_______________ concerns the selection and management of a mix of businesses competing in several industries or product markets
Corporate-level strategy
- it is the way a company creates value through the configuration and coordination of multi-market activities
Why vertically integrate?
- Market Power (increase revenue)
- entry barriers
- down-stream price maintenance
- up-stream power over price - Efficiency (lower cost)
- specialized assets & the holdup problem
- protecting product quality
- improved scheduling
What are the risks in undertaking cooperative agreements or strategic alliances?
- Adverse selection
- Moral hazard
- Holdup
_________ is when partners misrepresent skills, ability, and other resources
Adverse selection
_________ is when partners provide lower quality skills and abilities than they had promised
Moral Hazard
_________ is when partners exploit the transaction specific investment made by others in the alliance
Holdup
What are motivations for Diversification?
- Value-Enhancing Motives
- Value-neutral Motivations
- Devaluate Motivations
What are value-enhancing motives
- increase market power (multi-point competition)
- R&D and new product development
- Developing new competencies (stretching)
- transferring core competencies (leveraging)
__________ is diversification motivated by poor economic performance in current businesses
motivations that are “value neutral”
what are motivations that “devaluate”
- agency problem
- managerial capitalism
- maximize management compensation
- sales growth maximization
A _________ is a strategy through which two firms agree to integrate their operations on a relatively co-equal basis because they have resources and capabilities that together may create a stronger competitive advantage
Merger
___________ is a strategy through which one firm buys a controlling or 100% interest in another firm with the intent of using a core competence more effectively by making the acquired firm a subsidiary business within its portfolio
Acquisition
A ______________ is a type of acquisition strategy wherein the target firm did not solicit the acquiring firm’s bid
takeover
Attributes of Effective Acquisitions
Complementary Assets or Resources
Friendly Acquisitions
Careful Selection Process
Maintain Financial Slack
Scenarios where the bidder can do well
- Luck
- Asymmetric Information
- Specific-synergies between the bidder and the target
Pressures for Local Responsiveness
- Differences in customer tastes and preferences
- Differences in infrastructure and traditional practices
- Differences in distribution channels
- Host government demands
Four Basic Strategies
- Global Strategy
- Transnational Strategy
- International Strategy
- Multidomestic Strategy
_____________ is creating value by transferring competencies and products to foreign markets where indigenous competitors lack those competencies and products
International Strategy
- makes sense if a company has a valuable competence that indigenous competitors in foreign markets lack and if it faces weak pressure for local responsiveness and cost reductions
____________ is developing a business model that allows a company to achieve maximum local responsiveness
Multidomestic Strategy
- makes sense when there are high pressures for local responsiveness and low pressures for cost reductions
- companies may become too decentralized and lose the ability to transfer skills and products
____________ is focusing on increasing profitability by reaping cost reductions that come from experience curve effects and location economies; pursuing a low-cost strategy on a global scale
Global Strategy
- makes sense where there are strong pressures for cost reductions and demand for local responsiveness is minimal
___________ is simultaneously seeking to lower costs, be locally responsive, and transfer competencies in a way consistent with global learning
Transnational Strategy
Choice of Entry Mode
- Exporting
- Licensing
- Franchising
- Joint ventures
- Wholly-owned subsidiaries
- Choosing among Entry Modes
__________________ is a self-regulating business model that helps a company be socially accountable to itself, its stakeholders, and the public.
Corporate Social Responsibility
- also called corporate citizenship
Types of CSR
- Philanthropic Responsibility
- Ethical Responsibility
- Legal Responsibility
- Economic Responsibility
_______________ is the system of rules, practices, and processes which a firm is directed and controlled. It essentially involves balancing the interests of a company’s many stakeholders, such as shareholders, senior management executives, customers, suppliers, financiers, the government, and the community.
Corporate Governance
___________ refers specifically to the set of rules, controls, policies, and resolutions put in place to direct corporate behavior. A board of directors is pivotal in _______________.
Governance
Corporate Governance Models
- Anglo-Ameriacan Model
- Continental Model
- Japanese Model
