Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

SI422 > Midterm > Flashcards

Midterm Flashcards

1
Q

operational effectiveness

A

being better than enemy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

strategy

A

doing activities differently

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

what is value creation?

A

inputs + value = outputs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

how does the music industry case relate to value creation?

A

when value is created people in the supply capture it

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

what is value capture?

A

created value each party can internalize (profits they can “capture”)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

what is competitive advantage?

A

firm > industry average

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

industry evolution

A
  1. firms changing the industry
  2. society influencing the industry
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

example of industry evolution

A

ducati didn’t enter the cruiser market to compete against harley (less rivalry)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

strategic activity map

A

aligning strategies to the firm’s goals

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

example of strategic activity map

A

trader joe’s:
1. sailor theme
2. worker’s pay
3. attractive to college

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

what determines industry profitability?

A
  1. suppliers
  2. buyers
  3. rivalry/substitutes
  4. threat of entry
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

how do we approach the five forces?

A

industry level > ”what does the industry look like right now for the firms in it?”

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

factors creating low supplier power

A
  1. many suppliers
  2. low switching costs
  3. industry important to supplier
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

factors creating low buyer power

A
  1. many buyers
  2. high switching costs
  3. industry important to buyer
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

factors creating low rivalry

A
  1. few rivals
  2. growing industry
  3. low exit barriers
  4. high switch costs
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

if barriers to entry are high

A

threat of entry is low

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

factors creating high BTE

A
  1. high capital req
  2. cost disadvantage for new entrants
  3. access to distribution difficult
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

fixed costs vs BTE

A

how numerical costs (ie startup) impact barriers to entry

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

who are the buyers in the grocery industry?

A

wholesalers not the consumers (so if the wholesalers open a cereal factory they influence threat of entry)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

what is differentiation strategy?

A

about product quality NOT being different

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

what’s the differentiation strategy impact?

A

high profits if maintain similar pricing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

what’s the cost leadership impact?

A

cheap but must maintain quality

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

relative cost analysis

A

product cost break down by activity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

when is relative cost analysis most appropriate?

A

for less diversified firms (ducati + trader joe’s)

25
what is the VRIO framework?
1. valuable (resource) 2. rare (resource) 3. hard to imitate (resource) 4. organized to capture value (firm)
26
if you pass the VRIO framework
firm has long term competitive advantage
27
if a firm's resource is not valuable
competitive disadvantage
28
if a firm's resource is not rare
compete on price
29
if a firm's resource not hard to imitate
temporary competitive advantage
30
if a firm's not organized to capture value
temporary competitive advantage
31
what is organized to capture value?
do resources capture value (ie Google's employees ideas)
32
what is non market strategy?
things firms do to leverage themselves (ie lobbying, government incentives, etc)
33
what are market failures?
opportunities for non-market strategies to be relevant (no market failure means no opportunities to lobby)
34
types of market failures
1. monopolies (raise prices w/out losing customers) 2. public goods (no rivalry) 3. externalities (costs firms can impose on others (ie. carbon affecting the public) 4. information asymmetry 5. transaction costs
35
what are non-market strategy goals?
1. improve industry profits 2. improve against rivals 3. improve social environment
36
OITT framework
1. opportunity (improve profits) 2. interest (stakeholders) 3. targets (goals) 4. tools (resources) what is the opportunity, who is interested, what is their goal and what resources can be used?
37
why don't firms pursue CSR?
1. let them eat cake (max profit) 2. icing on cake (greenwashing) 3. deserves cake (stakeholder) 4. have cake + eat (win/win)
38
what is leadership advantage?
not the advantages of first but is first advantageous in the long run? (extended impact!)
39
network effect
advantageous when other people are on it (social media)
40
learning effect
producing more units increases efficiency in making the product
41
pioneering cost
will the guys after benefit from my initial costs? (ie. mobile money case—convincing government + developing infrastructure)
42
horizontal integration corporate strategy
moving across separate industries (can we lower our costs or raise WTP?)
43
vertical integration corporate strategy
w/in one industry + quality impacted (can we lower costs or raise WTP?)
44
better off test
does it lower cost or increase WTP? (ie. Apple iPad + Mac) 1. passing = integrating + ownership 2. failing = remaining separate
45
ownership test
failing = firms need to reach contract agreement (long term vs short term)
46
super soaker
1. Johnson create a great toy. 2. need distributor 3. distributors capture most value
47
lipitor
value creation declined (generic drug)
48
music industry
record labels capture most value
49
coke + pepsi (5 forces)
1. bottling hard to replicate 2. high barrier to entry 3. bottlers have low power 4. forward integration (more process control) 5. marketing makes rivalry high
50
coors
1. shifted to more store vs bars 2. people at home more 3. high BTE from economies of scale 4. wanted to narrow + differentiation
51
ducati
1. did not fight harley 2. differentiation 3. increased intangible value
52
trader joe's (strategic map + rca)
1. small stores 2. niche customer 3. cost leader 4. no branding
53
zipcar (VRIO)
1. marketing 2. technology 3. parking 4. mainly not in VRIO
54
mpesa
1. networking effect 2. pioneer cost
55
tata
1. indian law say 2% to CSR 2. tata does although unprofitable
56
apple
1. horizontal integration 2. economies of scale help 3. innovation increase WTP
57
disney + pixar (toy story)
1. vertical integration 2. disney needed pixar for toy story 3. pixar leverage from relationship specific investment (toy story)
58
easter eggs
1. jellyfish protein 2. questrom macy's + JC penny 3. bell telephone 4. bu bridge 5. US woman phd

SI422 (2 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions