Strategy & Globalization (M42) Flashcards
These are conditions that threaten management’s ability to execute strategies and achieve the firm’s objectives
Business Risks
What are the general environment factors? (6)
1) Economic
2) Demographic
3) Political & Legal
4) Sociocultural
5) Technological
6) Global
This is a set of factors that influence the firm’s competitive actions
Industry Environment
What are the 5 forces in the Porter model for industry analysis?
1) Competitors
2) Potential Entrants into the Market
3) Equivalent Products
4) Bargaining Power of Customers
5) Bargaining Power of Input Suppliers
Inflation rates are what type of general environment factor
Economic
Population size is what type of general environment factor
Demographic
Antitrust laws, tax laws, and deregulation philosophies are what type of general environment factor
Political & Legal
Workforce Diversity is what type of general environment factor
Sociocultural
This is a market where only one buyer exists for all sellers
Monopsony
The power of customers determines the firm’s ability to increase prices or lower quality of their products
Bargaining Power of Customers
The power of suppliers affects a firm’s ability to negotiate price or quality concessions
Bargaining Power of Suppliers
This sets forth the purpose of an organization, including its distinguishing characteristics
Mission
This sets forth where the organization would like to be in the future
Vision
This is used to develop strategies to minimize risks and take advantage of major opportunities
SWOT Analysis
The simple regression formula is as follows:
y = a +bx
What does ‘y’ stand for?
The dependent variable
The simple regression formula is as follows:
y = a +bx
What does ‘a’ stand for?
The y-axis intercept
The simple regression formula is as follows:
y = a +bx
What does ‘b’ stand for?
The slope of the line
The simple regression formula is as follows:
y = a +bx
What does ‘x’ stand for?
The independent variable
What are the two target scopes for generic business strategies, as dictated by Porter?
1) Broad (Industry-Wide)
2) Narrow (Market Segment)
What are two advantages a company can have in their products?
1) Low Cost
2) Product Uniqueness
How can a company differentiate their product?
1) Physical Characteristics
2) Perceived Differences (brand name)
3) Support Service Differences
This is the sharing of key information from the point of sale to the final consumer back to the manufacturer, the manufacturer’s suppliers, and the supplier’s suppliers
Supply Chain Management
This involves contracting for the performance of processes by other firms
Outsourcing
When given a regression analysis problem, Adjusted R Squared measures what?
The percent of the variance in the dependent variable explained by the independent variable
