Part 1 & 2 Flashcards
What is the aim of Anstoff’s matrix?
Framework that outlines different growth paths and possibilities.
What are the two dimensions of the Anstoff matrix?
Product and Market (New \ Existing)
Why should companies go through a market selection process before they internationalize?
Companies are unlikely to serve all markets in the world, need to focus and select a smaller number of markets to be active in. o It helps select the right countries for a product or business model increasing the chances of succeeding in the market
What is the difference between market capacity and market potential?
Market capacity = wider, bigger theoretical number.
Market potential = realistic, smaller subset of people, households, companies where you can sell your products.
Can calculate by volume only OR multiply by the price
Is a market scoring model objective?
Not entirely objective, but better than making decisions out of thin air.
- Bias in choosing criteria and in assigning weightings to the criteria, often also biases in assigning values for the criteria
+ The positive is that a selection process creates a system that can be easily reviewed and checked
What does research say about how companies internationalize?
References to Upsula model and Borne Global Framework. In the Borne Global Framework, there are very different ways to explain how companies internationalize: stage-wise approach or in a more drastic & quick approach.
2 streams of thought:
* Upsula school (start with psy close countries, share language / cultrure, export gradually. companies internationalize step by step with increased financial commitment and increased geographic distance over time.
* Born-globals - become international globally in a short space of time - service / it companies, short space of time (6-12 months). companies rapidly internationalize often using the possibilities provided by e-commerce and the internet in general
3 key elements of globalization?
Capital base, supply chain, market presence
What does disintegration of value chain mean?
o value chain is separated and spread across the g
Value chain is separated and spread across the globe
Why did Rugman conclude there were only 9 truly global companies?
Only 9 companies had an equal spread of revenues across the world
Why do strategy, org design and marketing show tensions between polar positions
when operating globally?
Because tradeoffs must be made between cost savings and regional
adaptation, you need a combination of both polar positions; centralization vs.
decentralization & standardization vs. adaptation
What is the role of regional headquarters?
o Provide local insights into the region and function as a coordinator between
global hq and local subsidiaries. Pool resources & knowledge for the local markets
What different perspectives do scholars of marketing take?
- Theoretical: How can we explain consumer behavior
- Information based: obtain info for marketing decisions
- Strategic: successful marketing strategies
- Instrumental: how to implement strategies using marketing instruments (4P)
- Implementation: Organize and control marketing and sales
- Institutional: What marketing do I need in different institutional settings?
(B2B, Services, …) - Leadership: Market-led organizational culture
What did Drucker see as the purpose of business?
To create a customer à only two main tasks: marketing and innovation
Regis McKenna’s Marketing definition?
Regis McKenna defines Marketing as everything – Marketing is not only
consisting of marketing functions, but also rather a whole philosophy and
businesses should be marketing oriented
Which two questions help navigate the semantic jungle?
a. Hierarchy and focus (what level is the strategy on (global, local, top
management, middle management) and what does it tackle (supply chain,
marketing, …)
What does it mean that strategy is about making choices?
A company must choose to do some things and not other
Porter – Operational Efficiency vs. Strategy
OR = doing what you do better. Strategy = figuring out what you should do
Why should strategies question prevailing business models?
Because searching for new opportunities is the job of strategy – increase the
odds of succeeding by choosing the right races to compete in
What are the key building blocks of the Strategy Cascade?
a. winning aspiration
b. where we play
c. how we win
d. capabilities
e. management systems
What drives the where to play question?
market definition, market segmentation, market position, market attractiveness
What are the two basic alternatives companies pursue to gain competitive
advantage?
a. low cost vs differentiation strategy
Why is it so important to measure the right thing?
a. to avoid wrong decisions/activities; making decisions in line with your strategy
is very important
Why does the Strategy Cascade have feedback loops?
Because of ongoing dynamic changes that affect strategies.
Porter’s three generic strategies?
Lower price, differentiation, and focus
Playing the spread?
You can aim for low price and differentiation
Treacy and Wiersema, three corporate success strategies?
Product leadership, Operational excellence, customer intimacy
Four main questions companies should address in order to derive new value
proposition?
- Reduce (What factors should we reduce below industry average?)
- Raise (What factors should we raise above average?)
- Create (What factors should we create?)
- Eliminate (What factors should we eliminate?)
In what way does the Resource Based View of the Firm alter how managers analyze
corporate strategy?
Porters strategies told you what you should do, but never how you can do it.
The RBV looks at resources and capabilities in order to formulate a strategy
