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Business Strategy and Policy I > Midterm > Flashcards

Midterm Flashcards

1
Q

a company’s strategy is

A

the set of coordinated actions that its managers take in order to outperform the company’s competitors and achieve superior profitability

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2
Q

competitive advantage

A

whenever a company has some type of edge over rivals in attracting buyers and coping with competitive forces

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3
Q

sustainable competitive advantage

A

elements of the strategy that give buyers lasting reasons to prefer a company’s products or services over those of competitors

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4
Q

deliberate strategy

A

consists of proactive strategy elements that are planned

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5
Q

emergent strategy

A

consists of reactive strategy elements that emerge as changing conditions warrant

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6
Q

business model

A

management’s blueprint for delivering a valuable product or service to customers in a manner that will generate revenues sufficient to cover costs and yield an attractive profit

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7
Q

the fit test

A

how well does the strategy fit the company’s situation?

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8
Q

the competitive advantage test

A

is the strategy helping the company achieve a competitive advantage? is the competitive advantage likely to be sustainable?

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9
Q

the performance test

A

is the strategy producing superior company performance?

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10
Q

commercial endeavours

A

refers to the markets the organization serves, the products and services it offers, and the needs it professes to meet in the marketplace

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11
Q

employee interaction

A

refers to the value-creating skills an organization’s employees bring to the marketplace. the success of many businesses lies with the specialized skills that exist within its labor force

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12
Q

organizational culture and decision-making structure

A

is a reflection of the framework of the business activities and decision-making ecosystem that exists within an organization

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13
Q

business

A

refers to the mission-focused activities aimed at identifying the needs of a particular market or markets and the development of a solution to such needs through the acquisition and transformation of resources into goods and services that can be delivered to the marketplace at a profit

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14
Q

business models

A

can be best visualized as the underlying operational platform or structure which a business uses to position its approach to a given market and thereby generates its revenue and, most importantly, derive its profit

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15
Q

activities

A

refer to key processes an organization undertakes in order to deliver products and services to the marketplace

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16
Q

resources

A

refers to four core areas: assets, labour, capital, and managerial acumen

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17
Q

assets

A

refers to 1: the infrastructure and resource base of the organization 2: the resources that the organization has at its disposal and that it can utilize in the generation of business activity and, ultimately, profit

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18
Q

labour

A

refers to the human resource (talent) requirements of the business

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19
Q

capital

A

refers to the money needed by an organization to support asset-based expenditures, meet operating cash requirements, and invest in the development of new products and/or services which the organization desires to introduce into the marketplace.

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20
Q

managerial acumen

A

refers to the foresight, drive, knowledge, ability, decision-making competency, and ingenuity of the organization’s key individuals—its owners or top-level managers.

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21
Q

partners

A

refers to complementary dependencies and/or relationships we have with other organizations that are deemed essential to the design, development, and delivery of products and services to the marketplace.

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22
Q

cost structure

A

the expenses that will be incurred as a result of offering products and/or delivering services to the marketplace.

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23
Q

product/service portfolio

A

refers to the different items, products, and/or services that a company offers for sale.

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24
Q

opportunity assessment

A

is analyzing the marketplace in such a way (via marketing research and data analytics) that enables the organization to determine which segments are most likely to respond to its communication messages and purchase its products and/or services.

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25
positioning
refers to our ability to develop a unique, credible, sustainable, and valued place in the minds of our customers for our brand, products, and/or services.
26
value proposition
is a statement that summarizes whom a product or service is geared toward and the benefits the purchaser will realize as a result of using the product or service.
27
revenue model
focuses on the relationship between the prices organizations are able to charge for their services, the volume of purchases they are able to generate, and the profitability derived from such activity.
28
for-profit companies
are organizations whose overarching objective is profitability and wealth creation on behalf of their shareholders and stakeholders.
29
not-for-profit organizations (NFPs)
are organizations whose overarching objective is not profitability and wealth creation but to deliver services to the people, groups, and communities that they serve via a model of collective interest and social goal achievement.
30
stakeholder
refers to individuals, groups, or organizations that have a direct or indirect relationship with an organization, and that can be impacted by its policies, actions, and decisions. Stakeholders could include customers, suppliers, government, employees, and so on.
31
visionary leadership
involves inspiring your workforce (talent) to pursue a shared goal, beyond ordinary expectations.
32
strategy
refers to the development of plans and decisions that will guide the direction of the firm and determine its long-term performance.
33
tactics
refers to the immediate-term actions which a firm executes in order to meet the short-term objectives set forth in the current planning cycle.
34
profit
is the “bottom line” result an organization has realized for an identified, immediate period of time. In simple terms, Total Revenue − Total Expenses = Profit.
35
profitability
measures how well a company is using its resources over a specific period of time to generate earnings relative to its competitors.
36
stockholders
refers to any person, company, or organization that owns at least one share of stock in a specific company.
37
G7/8
is a quasi-organization comprising the world’s major fully developed economies. The G7 consists of the United States, Japan, Germany, Great Britain, France, Italy, and Canada
38
comparative advantage
refers to the ability of a country to produce or supply goods or services at a lower cost than other countries or to possess resources or unique services that are unavailable elsewhere.
39
foreign direct investment (FDI)
occurs when a company or individual from one country makes an investment into a business within another country. This investment can reflect the physical ownership of productive assets or the purchase of a significant interest in the operations of a business.
40
law of supply and demand
refers to the ability of the market, independent of external influences, to determine the price for which a product or service will be bought and sold.
41
open system
refers to an economic system that adheres to the principles of economic freedom: the law of supply and demand, full and open access to the principles of private ownership, entrepreneurship, and wealth creation, and an absence of regulation on the part of government.
42
controlled systems
refers to economic systems where the fundamentals of the law of supply and demand, private ownership, entrepreneurship, and wealth creation are largely restricted or absent, and the government fully controls the economic direction and activity.
43
mixed economic system
refers to an economic system that contains components of both open and controlled systems. It includes the core principles of economic freedom, with some degree of centralized economic planning and government regulation and involvement.
44
chartered banks
are financial institutions regulated under the Canada Bank Act. Their primary responsibility is to bring together borrowers and lenders by accepting deposits and lending out money—all in a manner that safeguards the interests of their customers.
45
GDP
refers to the total market value of the goods and services (economic output) a nation produces domestically over a period of time (generally one calendar year).
46
inflation
is a rise in the level of prices of goods and services within an economy over a period of time.
47
parity
means being equal or equivalent to; specifically, the value of one currency being equal to that of another.
48
PPP (purchasing power parity)
a measure that takes into account the relative cost of living and the inflation rates of each country, and adjusts the total value of economic activity accordingly.
49
hostile takeover
refers to an attempt by a company to take over another company whose management and board of directors are unwilling to agree to the merger or takeover.
50
recession
is a period of time that marks a contraction in the overall economic activity within an economy. A recession is typically believed to occur when an economy experiences two or more quarters of negative GDP movement.
51
PESTEL Analysis
refers to a macro-level assessment of the political, economic, social, technology, environmental, and legal trends that can or will impact the markets within which an organization competes.
52
protectionism
is the outcome of the intent of economic policies that are put in place to protect or improve the competitiveness of domestic industries via impeding or restricting the openness of a market or markets to foreign competitors through the use of tariffs, trade restrictions, quotas, artificial control of currency values, or other related activities.
53
purely competitive markets
are markets that are characterized by a number of similar (undifferentiated) products or services, the absence of a dominant market leader, and few barriers to entry.
54
monopolistic markets
are markets that possess a number of different suppliers of products and services, but the nature of the product or service, along with the marketing effort initiated by businesses within the sector, has enabled true differentiation to set in.
55
oligopoly-based markets
are markets that contain a small number of suppliers that control a large percentage of market share within the market, and that compete on the basis of products and/or services that have achieved success in distinguishing themselves from their competitors.
56
monopoly-based markets
are markets that are served by a single product/service supplier.
57
commoditization
is the process by which products and/or services that have been considered unique and/or distinguishable in the past become similar, or non-differentiated in the eyes of the consumer.
58
strategic inflection point
is the point at which the extent of industry change requires management to consider changing the company's strategic vision
59
strategic plan
maps out where a company is headed, establishes strategic and financial targets, and outlines the basic business model, competitive moves, and approaches to be used in achieving the desired business results
60
strategic vision
describes management's aspirations for the company's future and the course and direction charted to achieve them
61
mission statement
describes the enterprise's present business and purpose
62
difference between a strategic vision and mission
a strategic vision portrays a company's aspirations for its future whereas a company's mission describes the scope and purpose of its present business
63
values or core values
certain beliefs, traits, and behavioral norms that management has determined should guide the pursuit of its vision and mission
64
objectives
are an organization's performance targets - the specific results management wants to achieve
65
well chosen objectives are
specific, measurable, time-limited, challenging, achievable
66
stretch objectives
set performance targets high enough to stretch an organization to perform at its full potential and deliver the best possible results
67
extreme stretch goals
are warranted only under certain conditions
68
financial objectives
communicate management's goals for financial performance
69
strategic objectives
lay out target outcomes concerning a company's market standing, competitive position, and future business prospects
70
balanced scorecard
is a widely used method for combining the use of both strategic and financial objectives, tracking their achievement, and giving management a more complete and balanced view of how well an organization is performing
71
the four dimensions of a balanced scorecard
financial, customer, internal process, organizational (formerly called Growth and Learning)
72
corporate strategy
establishes an overall game plan for managing a set of businesses in a diversified, multibusiness company
73

Business Strategy and Policy I (2 decks)

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