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(MAN301) Strategic and International Management > Lecture 2 > Flashcards

Lecture 2 Flashcards

1
Q

What is a strategic group?

A

A cluster of competitors that have similar approaches and market positions

Strategic groups help in understanding competitive dynamics within an industry.

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2
Q

What is the first step in constructing a strategic group map?

A

Identify the competitive characteristics that differentiate firms in the industry

This step is crucial for visualizing market positions.

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3
Q

What do you do after plotting firms on a two-variable map?

A

Assign firms occupying about the same map location to the same strategic group

This helps to categorize firms based on their competitive characteristics.

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4
Q

What should be done with the strategic groups on the map?

A

Draw circles around each strategic group, making the circles proportional to the size of the group’s share of total industry sales revenues

This visual representation aids in understanding market concentration.

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5
Q

What are tangible resources?

A

Cash, machines, financial assets, IT and communications systems, organizational design and reporting structure, planning, coordination and control systems

Tangible resources are physical and measurable assets.

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6
Q

What are intangible resources?

A

Brand, partnerships, network of distributors, company culture, incentive system, patents, human assets and intellectual capital

Intangible resources contribute significantly to competitive advantage.

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7
Q

Define dynamic capability.

A

An organization’s ability to adapt and renew its internal resources and competencies in order to achieve strategical superiority

Dynamic capabilities are essential for adapting to changing market conditions.

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8
Q

What does the VRIO framework stand for?

A

Valuable, Rare, Inimitable, Organized

The VRIO framework helps assess resources for sustainable competitive advantage.

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9
Q

What is the Resource-Based View (RBV) of the firm?

A

Argues that a company’s competitive advantage is derived from its internal resources and capabilities, rather than just external market factors

RBV emphasizes the importance of internal strengths.

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10
Q

Fill in the blank: The resources in the VRIO framework must be _______ to deliver a sustainable competitive advantage.

A

organized

Proper organization of resources is crucial for leveraging competitive advantage.

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11
Q

What is the market-based view of the firm?

A

Thinking strategically about a firm’s external environment.

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12
Q

What is the resource-based view of the firm?

A

Thinking strategically about a firm’s internal environment.

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13
Q

What is resource immobility?

A

Assumption in resource-based view that resources can’t easily move across firms.

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14
Q

What is resource heterogeneity?

A

Assumption in resource-based view that a firm is a bundle of resources and capabilities that differ across firms.

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15
Q

What are the key aspects of market growth?

A
  1. Current market size in units or sales. 2. Past, current, and expected rate of growth for the market/industry. 3. Growth doesn’t guarantee profitability.
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16
Q

What are the stages of market development?

A
  1. Development 2. Growth 3. Maturity 4. Decline.
17
Q

What is the proliferation of competing products?

A

Increase in the number and variety of products offered by different companies in the same market or industry.

18
Q

What does the macro environment include?

A

Political, Economical, Social, Technological, Environmental factors, Global forces, Demographics.

19
Q

What are Porter’s Five Forces?

A
  1. Competition from rival sellers. 2. New entrants. 3. Substitute products producers. 4. Bargaining power of suppliers. 5. Bargaining power of customers.
20
Q

What are complementors?

A

Producers of complementary goods/services. Cooperative interactions might be realized to maximize value.

21
Q

What is scenario analysis?

A

A tool to consider different alternative scenarios and their consequences. What is the worst/best development? What actions would this particular scenario require?

22
Q

What are resources in a business context?

A

A productive input or competitive asset that is owned or controlled by the company (e.g. cash, buildings, a fleet of oil tankers, intellectual property).

23
Q

What influences the macro environment?

A

PESTEGD Forces influence it.

24
Q

What does the ‘P’ in PESTEGD stand for?

A

Political & Legal factors.

25
Q

What are some examples of Political & Legal factors?

A

Political climate, strength of institutions, labour laws, antitrust laws, tax policy.

26
Q

What does the ‘E’ in PESTEGD represent?

A

Economical factors.

27
Q

What are some examples of Economical factors?

A

Rates of economic growth, unemployment rates, inflation, interest, trade deficit/surplus, savings, per capita domestic product, stocks and bonds affecting consumer confidence.

28
Q

What does the ‘S’ in PESTEGD stand for?

A

Social factors.

29
Q

What are some examples of Social factors?

A

Lifestyle, values, feminism, body positivity, traditional family values.

30
Q

What does the ‘T’ in PESTEGD represent?

A

Technological factors.

31
Q

What does the ‘E’ in PESTEGD refer to?

A

Environmental factors.

32
Q

What are some examples of Environmental factors?

A

Natural resources (water, ore), terrain, weather.

33
Q

What does the ‘D’ in PESTEGD stand for?

A

Demographics.

34
Q

What are some examples of Demographic factors?

A

Growth rate, size, age distribution, income distribution.

35
Q

What are Global forces in the context of PESTEGD?

A

Conditions and changes in global markets, including political events and policies towards international trade, sociocultural practices, and the institutional environment in which global markets operate.

36
Q

Growth (of a market) ___________ profitability

A

doesn’t guarantee

(MAN301) Strategic and International Management (11 decks)

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