test 1 study guide

Question 1

what is strategy

Answer 1

explicit, rigorous, formal planning versus a set of flexible, goal oriented actions

Question 2

what are some strategy theories on how to compete successfully

Answer 2

1. firms have both intended and emergent strategies
2. one firms strategies may not work in all situations
3. past success does not guarantee future success
4. often difficult to change strategy
5. it should give coherence to decisions and actions
6. managers must exert strategic leadership

Question 3

what does strategic management entail?

Answer 3

the analysis of internal and external environments of firms to maximize the utilization or resources in relation to objectives

Question 4

definition of strategic management

Answer 4

formation, implementation and evaluation of managerial actions that enhance the value of the business enterprise. it is the process through which strategies are chosen and implemented. also centered on problems relating to the creations and sustainability to competitive advantage

Question 5

how do firms behave? 3 views

Answer 5

industry based view- focuses on competitive forces
resource based view- focus on strength and weaknesses or capabilities
institution based view- government and societal forces

Question 6

intended strategy

Answer 6

decisions are determined only by analysis

Question 7

realized strategy

Answer 7

decisions determined by both analysis and unforeseen environmental developments and unanticipated resource constraints or changes in managerial preferences

Question 8

static strategy

Answer 8

where are we competing?
how are we competing?

competing for the present

Question 9

dynamic strategy

Answer 9

what do want to become?
what do we want to achieve?
how will we get there?

preparing for the future

Question 10

industry definition

Answer 10

a group of firms producing good or services that are similar to each other

Question 11

dominance of external environments

Answer 11

the industry itself has more influence than the managers decision making within organizations

Question 12

industry properties determining performance

Answer 12

economies of scale
barriers to market entry
diversification 
product differentiation
degree of concentration

Question 13

industrial organizational model (IO)

Answer 13

focuses on environment outside of firm

Question 14

resource based model

Answer 14

focuses on inside of firm

Question 15

vision

Answer 15

an enduring picture of what the firm wants to be and achieve

Question 16

corporate social responsibility

Answer 16

accepting responsibilities that extend beyond the interest of shareholders

for ethical reason
self interest
sustainability, reputation, license to operate

Question 17

mission

Answer 17

is more concrete than a firms vision. more effective with strong ethical standards

Question 18

the external environment consists of 3 things

Answer 18

the immediate industry environment
larger macro environment
environment of groups with a stake in the firm

Question 19

factors beyond a firms control

Answer 19

demographic
socio cultural
legal/ political 
technological
economic
global

Question 20

product width

Answer 20

number of different product lines

ex: GE sells fridges, dishwashers, etc

Question 21

product length

Answer 21

the number of items in a product line

ex: the different types of fridges

Question 22

product depth

Answer 22

the number of versions offered of each product in the line

ex: the different types of that specific fridge maybe one has an ice maker and the other does not

Question 23

line extension

Answer 23

adding a new product to a line

ex: colors, styles, flavors, etc

Question 24

line stretching

Answer 24

old navy, gap, banana republic

Question 25

upward stretching

Answer 25

ex: toyota to lexus

Question 26

downward stretching

Answer 26

banana republic to gap

Question 27

product life cycle

Answer 27

how a certain product type evolves overtime

Question 28

product audit

Answer 28

a marketing managements decisions regarding whether each product should be continued as is, improved, modified or deleted

Question 29

brand

Answer 29

identifies one sellers good or service as distinct from competitors

Question 30

brand equity

Answer 30

the set of assets or liabilities linked to the brand that add or subtract value

based on: differentiation, satisfaction, market share, perceived quality, brand personality

Question 31

brand identity

Answer 31

the set of human characteristics associated with a brand

Question 32

co branding

Answer 32

arrangement that associates a brand with another brand. two companies form an alliance toward together to create marketing synergy

Question 33

brand portfolio

Answer 33

the set of all brands a particular form offers for sale in a particular product/ service category or segment

Question 34

brand extension

Answer 34

using existing brand name to enter a completely different product class