Strategic Management Flashcards
What strategies tend to be bottom-up?
Emergent Strategies
The “threat of participation” is NOT a part of what framework?
Porter’s Five Forces Framework
A company’s mission is….
The reason for existence of the company
When should you use an industry analysis?
To improve a firm’s positioning within an industry.
To identify a suitable positioning for the firm
To identify an industry for entry
What assertions are a source of First Mover Advantage?
Buyer switching costs
Technological leadership
Preemption of assets
When a resource is hard to copy it is….
Strategically Valuable
In VRIO, I stands for…
Costly to imitate
SWOT allows you to…
apply VRIO to determine strengths and weaknesses
What are the threats of outperformance?
Slack,Imitation, Substitution, Holdup
Value Chain Analysis allows you to…
A. Identify operational bottlenecks
B. Identify competitive advantages
C. Identify social costs
What strategy can be used by any organization regardless of industry context?
Generic Strategy
Two examples of cost drivers in value chains are?
Learning and linkages
How do firms achieve and sustain competitive advantage?
Provide a great offering and execute well the processes and activities that deliver the offering
What is a Complementor in Value Net Analysis?
Complementor adds value to your product and without it, your product is worth less.
What is the fundamental question of cooperative interaction?
How can I work with others to make the pie bigger?
A vertical added value matrix between the parent company and it’s business is called?
The Heartland Matrix
What is the Growth-share matrix?
A business to business matrix analysis. Cash Cow, Dogs, Stars, Question Marks
Risk-taking is NOT
A motive for diversification
What are motives for diversification?
Economy of Scope Growth Parenting advantage Risk Reduction Strategic control
Strategies for Unrelated Diversification
Portfolio Management
Restructuring
Strategies for Related Diversification
Transferring skills
Sharing activities
A “Ballast” business in Heartland Matrix is?
a firm does NOT see a parenting opportunity for improving the business, but may get its success factors.
When is it best to favor an alliance over an acquisition?
When a collaboration’s outcome is highly uncertain.
Why do markets assign lower values to conglomerates that engage in business outside of their core values?
Those conglomerates are more difficult to monitor
The economies of scope are frequently smaller than the additional coordination costs
Due diligence for an acquisition is usually done on what issues?
Investment
Financial Tax
Legal
IT
What are some drivers of alliances?
Strengthen competitive position
Access complementary assets
Hedge against uncertainty
Enter new markets
Learning races are considered a risk in what activity?
Alliances
Three types of strategies to create and capture value abroad?
Deployment Strategy
Deepening Strategy
Development strategy
Development Strategy
Obtain new capabilities that increase willingness to pay or decrease cost.
Deepening Strategy
Use existing capabilities to increase willingness to pay or decrease costs
Deployment Strategy
Increase scale and maintain willingness to pay and costs
What do organization need to know when assessing whether to enter new geographic markets?
- The implication of any adjustments of its business model
- Which parts of the business model can be adjusted to fit new environments
- Which environmental traits its business model cannot function without
What is the paradox of being consistent?
A situation in which organizations with the greatest advantage at home are often the most likely to fail when expanding globally.
What type of market is Greenfield entry best for?
Emerging and fragmented
What type of market is acquisition/partnership best suited for?
Mature markets with strong players
