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AUDIT: Chapter 4 > STRATMGMT - Chapter 5 > Flashcards

STRATMGMT - Chapter 5 Flashcards

1
Q

TRUE OR FALSE: If there is a long delay between an attack and a response, this generally provides the attacker an edge

A

TRUE

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2
Q

service industries

A

franchising

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3
Q

This involves creating a new, untapped market rather than competing with rivals in an existing market.

A

Blue ocean strategy

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4
Q

It refers to the nature of raw material and other inputs that firms need to create goods and services

A

Factor conditions

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5
Q

“driving pleasure”

A

Fahvergnugen

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6
Q

What strategy captures the essence of the saying “you get what you pay for”

A

Differentiation Strategy

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7
Q

borrowed from the arts

A

Bricolage

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8
Q

This refers to a firm that has operations in more than one country

A

Multinational corporation

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9
Q

the determinants of national advantage

A

Diamond model

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10
Q

This adds complexity to decisions about whether to respond to a rival’s moves

A

Multipoint Competition

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11
Q

This is most frequently used in manufacturing industries

A

Licensing

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12
Q

With this strategy, a firm tries to balance the desire for efficiency with the need to adjust to local preferences within various countries

A

Transnational strategy

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13
Q

This refers to how challenging it is to survive domestic competition

A

Firm strategy, structure, and rivalry

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14
Q

What are the possible responses to Disruptive Innovation?

A
  1. Ignore the disruption, thus focus on the traditional strategy
  2. Attacking the other dimensions
  3. Simply match the competitor’s move
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15
Q

TRUE OR FALSE: Firms tend to cooperate in activities located far in the value chain from customers, and competition generally occurs close to customer

A

TRUE

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16
Q

Cost leaders manage to charge low prices but have a profit through the use of ___________

A

Efficiency

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17
Q

highlights a complex interaction

A

Co-opetition

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18
Q

TRUE OR FALSE: Successful use of a differentiation strategy depends only on offering unique features to potential customers

A

FALSE

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19
Q

This is generally best suited for “creating a pie”

A

Cooperation

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20
Q

This strategy requires competing based on price to target a narrow market

A

Focused cost-leadership

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21
Q

This refers to when a firm faces the same rival in more than one market

A

Multipoint Competition

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22
Q

This strategy attempts to convince customers to pay a premium price for its good or services by providing unique and desirable features

A

Differentiation Strategy

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23
Q

He argued that technological advances and increased interconnectedness is leveling the competitive playing field between developed and emerging countries

A

Thomas Friedman

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24
Q

A business operation in a foreign country that a firm full owns

A

Wholly owned subsidiary

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25
Q

TRUE OR FALSE: One drive of the rapid growth of external business over the past two decades has been the opening up of large companies

A

FALSE (external-internal)

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26
Q

This involves whether a firm is trying to gain an edge by lowering costs down or by offering something unique in the market

A

Competitive Advantage

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27
Q

Firms that uses focused cost leadership generally perform poorly because they lack a clear market or competitive pricing

A

FALSE (focused cost leadership-stuck in the middle)

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28
Q

cut-throat

A

Red ocean strategy

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29
Q

It occurs when rivals do not act aggressively because each recognizes that the other can retaliate in multiple markets.

A

Mutual Forbearance

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30
Q

TRUE OR FALSE: The pharmaceutical industry is the location of many strategic alliances

A

TRUE

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31
Q

series of upsprings

A

Arab spring

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32
Q

A firm using a ___________ sacrifices responsiveness to local requirements within each of its markets in favor of emphasizing efficiency

A

Global Strategy

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33
Q

TRUE OR FALSE: Overcoming advantages in factor conditions leads companies to develop unique skills

A

FALSE (disadvantage-advantage)

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34
Q

This refers to the general way of positioning a firm within an industry

A

General strategy

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35
Q

This is the lower-end brand that a firm introduces to try to protect a firm’s market share without damaging the firm’s existing brands

A

Fighting brand

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36
Q

A finnish rock band that has created a niche for itself by combining heavy metal music with the imagery and costumes of Vikings

A

TURISAS

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37
Q

Who discovered the idea of business-level strategy?

A

Michael Porter

38
Q

Narrow Market

A

Niche

39
Q

It is created when the costs of offering goods and services decreases as a firm is able to sell more items

A

Economies of Scale

40
Q

A small position that a firm intentionally establishes within a market in which it does not yet compete

A

Foothold

41
Q

It is a cooperative arrangement in which two or more organizations each contributing to the creation of new entity.

A

Joint venture

42
Q

This refers to the potential for a company’s operations in a country to struggle because of difference in language, customs, norms, and customer preferences

A

Cultural risk

43
Q

This refers to the potential for a country’s economic conditions and policies, property rights protections, and currency exchange rates to harm a firm’s operations within a country

A

Economic risk

44
Q

It occurs when job that had been sent overseas are returning home

A

Reshoring

45
Q

Cost leaders rely on this one to achieve efficiency

A

Economies of Scale

46
Q

granting the right to use

A

franchising

47
Q

What are the advantages of marketing internationally?

A
  1. Access to new customers
  2. Lowering costs
  3. Diversification of business risk
48
Q

This sacrifices efficiency in favor of emphasizing responsiveness to local requirement within each of its markets

A

Multidomestic strategy

49
Q

rapid and unpredictable moves

A

Hypercompetition

50
Q

Refers to the potential for government upheaval or interference with business to harm an operation within a country

A

Political risk

51
Q

What are the three international strategy?

A
  1. Multidomestic strategy
  2. Global strategy
  3. Transnational strategy
52
Q

TRUE OR FALSE: One route toward a best-cost strategy is for a firm to adopt a business model whose fixed costs and overhead and very high relative to the costs that competitors are absorbing

A

FALSE (high-low)

53
Q

“He who hestitates is lost”

A

Joseph Addison

54
Q

Occurs when a firm’s assets in a country are seized by te national government

A

Nationalization

55
Q

It involves creating goods within a firms home country and then shipping them to another country

A

Exporting

56
Q

What are the five basic options to enter a new market?

A
  1. Exporting
  2. Creating a wholly owned subsidiary
  3. Franchising
  4. Licensing
  5. Joint venture & strategic alliances
57
Q

TRUE OR FALSE: The pursuit of uniqueness is often taken to the proverbial “next level” by firms using a Focused cost-leadership

A

FALSE (cost leadership - differentiation)

58
Q

What are the four factors under diamond model?

A
  1. Demand condition
  2. Factor condition
  3. Related and supporting industries
  4. Firm strategy, structure, and rivalry
59
Q

This exists when making the initial move into a market allows a firm to establish a dominant position

A

First-mover advantage

60
Q

This allow firms to enjoy success that might not otherwise be reached

A

Cooperative Moves

61
Q

What are the three types of risk when marketing internationally?

A
  1. Political risk
  2. Economic risk
  3. Cultural risk
62
Q

TRUE OR FALSE; Making a first move is generally risky

A

FALSE (generally-inherently)

63
Q

A firm following is strategy offers products or services with acceptable quality and features to a broad set of customers at a low price.

A

Cost-Leadership Strateggy

64
Q

Land, labor, infrastructure, and capital markets are example of what factor?

A

Factor conditions

65
Q

Firms that charge relatively low prices and offer substantial differentiation are using what strategy?

A

Best-cost strategy

66
Q

key components of modern vehicles

A

Electronics

67
Q

TRUE OR FALSE: A relative lack of market research can lead cost leaders to be less skilled than other firms at detecting important environmental changes.

A

TRUE

68
Q

powerful framework

A

Diamond Model

69
Q

This strategy explains that an effectively serving the specialized needs of a niche market can create great riches.

A

Focused Differentiation Strategy

70
Q

It addresses the question of how a firm will compete in a particular industry

A

Business-level strategy

71
Q

“the early birds gets the worm”

A

First-mover advantage

72
Q

It means using whatever resources and materials are available as inputs to create a product

A

Bricolage

73
Q

This refers to the nature of domestic customers

A

Demand conditions

74
Q

TRUE OR FALSE: Executive apply the concept of Joint Venture when they combine ideas from existing businesses to create a new business

A

FALSE (Joint venture-bricolage)

75
Q

It refers to the potential that an operation might fail

A

Business risk

76
Q

This strategy requires offering a unique features that fulfill the demands of a narrow market.

A

Focused Differentiation

77
Q

This involves whether a firm is trying to attract customers in general or trying to attract a specific segment of customers.

A

Scope of Operations

78
Q

These are strategies that involves targeting a relatively narrow niche of potential customers

A

Focus strategies

79
Q

They are known for insisting on very high levels of quality, aesthetics, and reliability.

A

Japanese consumers

80
Q

The extent to which firms’ domestic suppliers and other complementary industries are developed and helpful

A

Related and supporting industries

81
Q

What are the two dimensions of business-level strategy?

A
  1. Competitive Advantage
  2. Scope of operations
82
Q

A firm is said to be a ___________ if it does not offer features that are unique enough to convince the customer to buy its offerings, and its prices are too high to compete effectively based on price

A

Stuck in the middle

83
Q

companies exist in what type of world?

A

flat world

84
Q

An innovation that conflicts with and threatens to replace traditional approaches to competing within an industry

A

Disruptive Innovation

85
Q

This occurs when goods and services offered under different brands are located close to one another.

A

Colocation

86
Q

This involves very rapid and unpredictable moves and countermoves that can undermine competitive advantage

A

Hypercompetition

87
Q

This enables firms to share resources and to learn from one another’s strengths

A

Cooperation

88
Q

TRUE OR FALSE: Business risk is reduced when a firm is involved in multiple countries

A

TRUE

89
Q

TRUE OR FALSE: A firms’ business level strategy should try its hardest to serve the varied needs of different segment of customers in an industry.

A

FALSE

90
Q

It is a cooperative arrangement between two or more organizations that does not involve the creation of a new entity

A

Strategic Alliances

91
Q

TRUE OR FALSE: Focusing on generic strategies allows executives to concentrate on the core elements of firms’ business-level strategies

A

TRUE

92
Q

What are the three factors that determines the likelihood that a firm will respond to a competitive move?

A
  1. Awareness
  2. Motivation
  3. Capability

AUDIT: Chapter 4 (8 decks)

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