Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Strategy and Organisation - UvA > Week 2 > Flashcards

Week 2 Flashcards

1
Q

What are the foundation for strategy?

A

Resources

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

In general, the sustainability of competitive advantage is a function of?

A
  1. The rate of core competence obsolescence because of environmental changes
  2. The availability of substitutes for the core competence
  3. The imitability of the core competence
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

When is a business-level strategy effective?

A

A business-level strategy is effective only when it is grounded in exploiting the firm’s core competencies and competitive advantages.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Name the conditions affecting managerial decisions about resources, capabilities and core competencies:

A
  1. Uncertainty (Regarding characteristics of the general and the industry environments, competitors actions, and customer preferences)
  2. Complexity (Regarding the interrelated causes shaping firms environments and perceptions of the environment)
  3. Intra-organizational conflicts (among the people making managerial decisions)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Tangible resources are assets that can be..

A

..observed and quantified.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Name the 4 types of tangible resources according to S&O

A
  • Financial
  • Organisational
  • Physical
  • Technological
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Intangible resources are assets that are..

A

..rooted deeply in the firms history routines. They are relatively difficult for competitors to analyse and imitate.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Same three types of intangible resources

A
  • Human (like knowledge)
  • Innovative (like ideas)
  • Reputational (like reputation with customers)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Capabilities exist when resources have been purposely __________ to achieve a specific task or set of tasks.

A

Integrated

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Define core competencies

A

Core competencies are capabilities that serve as a source of competitive advantage for a firm over its rivals. They distinguish a company competitively and reflect its personality

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What does VRIN stand for?

A

Valuable
Rare
Costly to Imitate
Nonsubstitutable

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Define the value-chain analysis

A

A value chain analysis shows how product moves from the raw material stage to the final customer.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What does the Value-chain analysis allow the firm?

A
  • Allows the firm to understand the parts of its operations that create value and those that do not.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What is a value-chain segmented into?

A
  • Primary activities
  • Support activities
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Define primary activities (value-chain)

A

Primary activities are involved with a products physical creation, its sale and distribution to buyers and its service after the sale.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Define Support activities (value-chain)

A

Support activities provide the assistance necessary for the primary activities to take place.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What must a resource or capability allow the firm to be a source of competitive advantageness?

A

It must allow the firm to perform an activity in a manner that provides value superior to that provided by competitors; or to perform a value-creating activity that competitors cannot perform

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What is outsourcing used for?

A

Outsourcing is used for for resources and capabilities that are not a source of core competence and competitive advantage.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Where must firms outsource?

A

Firms must outsource only activities where they cannot create value or where they are at a substantial disadvantage compared to competitors.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Whats the consequences of outsourcing?

A
  • Potential loss in firm’s innovative ability
  • loss of jobs within companies
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

What is the fundamental objective of using any type of strategy?

A

-> gain strategic competitiveness and earn above-average returns

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Define Business-level strategy

A

Business-level strategy is an integrated and coordinated set of commitments and actions the firm uses to gain a competitive advantage by exploiting core competencies in specific product markets.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

How does a firm position itself differently from competitors?

A

To position itself differently from competitors, a firm must decide whether it intends to perform activities differently or to perform different activities.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Does a firm competing in a signle-product market area in a single geographic location need a corporate-level strategy to deal with geographic diversity?

A

No

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Name the three dimensions by which a firm’s relationship with customers are characterized.

A
  1. The reach (firms access and connection to customers)
  2. The richness (depth and detail of the two-way flow of information between the firm and the customer)
  3. Affiliation (facilitating useful interactions with customers)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

In terms of customers, when selecting a business-level strategy, what does the firm determine?

A

The firm determines who will be served, what needs those target customers have that it will satisfy, and how those needs will be satisfied.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

Firms choose from among five business-level strategies to establish and defend their desired strategic position against competitors. Name them:

A
  • Cost leadership
  • Differentiation
  • Focused cost leadership
  • Focused differentiation
  • Integral cost leadership/ differentiation
28
Q

Define the cost leadership strategy

A

The cost leadership strategy is an integrated set of actions taken to produce goods or services with features that are acceptable to customers at the lowest cost, relative to that of competitors.

29
Q

What do cost leaders concentrate on?

A

Cost leaders concentrate on finding ways to lower their costs relative to competitors by constantly rethinking how to complete their primary and support activities to reduce costs still further while maintaining competitive levels of differentiation

30
Q

Why do firms use value-chain analysis?

A

To identify the parts of the company’s operations that create value and those that do not

31
Q

What are the risks of using a cost-leadership strategy?

A
  • Processes used by cost leader to produce and distribute its good or service could become obsolete because of competitors innovations
  • Too much focus by the cost leader on cost reduction may occur at the expense of trying to understand customers perception of competitive levels of differentiation.
32
Q

Define the Differentiation strategy

A

The differentiation strategy is an integrated set of actions taken to produce goods or services taht customers perceive as being different in way that are important to them

33
Q

What customers do cost leaders serve?

A

Typical customer in an industry

34
Q

What customers do differentiators target?

A

Customers whom value is created by the manner in which the firms products differ from those produced and marketed by competitors.

35
Q

When does continuous success with the differentiation strategy result?

A

When the firm consistently upgrades differentiated features that customers value and/ or creates new ones without significant cost increases

36
Q

Name the risks of a differentiation strategy:

A
  • Customers might decide that the price differential between the differentiator’s product and the cost leader’s product is too large
  • A firm’s means of differentiation may cease to provide value for which customers are willing to pay.
  • Experience can narrow customers perceptions of the value of product’s differentiated features
  • counterfeiting
37
Q

Define focus strategies

A

The focus strategy is an integrated set of actions taken to produce goods or services that serve the needs of a particular competitive segment.

38
Q

Give some examples of specific market segments that can be targeted by a focus strategy

A

A particular buyer group, a different segment of a product line, or a different geographic market.

39
Q

Whats the essence of the focus strategy?

A

The essence of this strategy is the exploitation of a narrow target’s differences from the balance of the industry.

40
Q

What are the risks of focus strategies?

A
  1. A competitor may be able to focus on a more narrowly defined competitive segment and out-focus the focuser
  2. A company competing on an industry-wide basis may decide that the market segment served by the firm using a focus strategy is attractive and worthy of competitive pursuit
  3. This one involved with a focus strategy is that the needs of customers within a narrow competitive segment may become more similar to those of industry-wide customers as a whole, over time.
41
Q

Define integrated cost leadership/ differentiation strategy

A

The integrated cost leadership/ differentiation strategy involves engaging in primary and support activities that allow a firm to simultaneously pursue low cost and differentiation.

42
Q

What the objective of using a integrated cost leadership/ differentiation strategy

A

the objective is to efficiently produce products with some differentiated features

43
Q

Name three sources of flexibility that are particularly useful for firms trying to balance the objectives of continuous cost reductions and continuous enhancements to sources of differentiation:

A
  • Flexible manufacturing systems
  • information networks
  • total quality management systems
44
Q

Define total quality management

A

Total quality management is a managerial innovation that emphasizes an organisations total commitment to the customer and to continuous improvement of every process through the use of data-driven, problem-solving approaches based on the empowerment of employee groups and teams.

45
Q

Firms that fail to perform the primary and support activities in an optimum manner become stuck _______

A

in the middle.

46
Q

Define competitors

A

Firms operating in the same market, offering similar products and targeting similar customers are competitors.

47
Q

Define competitive rivalry

A

Competitive rivalry is the ongoing set of competitive actions and competitive responses that occur among firms as they manoeuvre for an advantageous market position.

48
Q

Define Competitive behaviour

A

Competitive behaviour is the set of competitive actions and competitive responses the firm takes to build or defend its competitive advantages and to improve its market position.

49
Q

Define multimarket competition

A

The firms competing against each other in several product or geographic markets are engaged in multimarket competition

50
Q

Define competitive dynamics

A

All competitive behaviour is the competitive dynamics

51
Q

Where does competitive rivalry evolve from?

A

From the pattern of actions and responses as one firm’s competitive actions have noticeable effects on competitors, eliciting competitive responses for them.

52
Q

Define Competitor analysis

A

Competitor analysis is the first step the firm takes to be able to predict the extend and nature of its rivalry with each competitor

53
Q

Define the market commonality

A

market commonality is concerned with the number of markets with which the firm and a competitor are jointly involved and the degree of importance of the individual markets to each.

54
Q

When firms produce similar products and compete for the same customers, the competitive rivalry is likely to be _________

A

high

55
Q

A firm with greater multimarket contact is ______ likely to initiate an attack, but _____ likely to move aggressively when attacked.

A

Less; More

56
Q

Multimarket competition ________ competitive rivalry

A

reduces

57
Q

Define resource similarity

A

Resource similarity is the extent to which the firms tangible and intangible resources are comparable to a competitors in terms of both type and amount

58
Q

Name Three drivers of competitive actions and responses

A
  1. Awareness
  2. Motivation
  3. Ability
59
Q

Why is it useful to understand a competitors awareness, motivation and ability?

A

It helps the firm predicting the likelihood of an attack by that competitor and the probability that a competitor will respond to actions taken against it.

60
Q

Define competitive action

A

Competitive action is a strategic or tactical action the firm takes to build or defend it competitive advantages or improve its market position.

61
Q

Define a competitive response

A

A Competitive response is a strategic or tactical action the firm takes to counter the effects of a competitors competitive advantage

62
Q

Define “First mover”

A

A first mover is a firm that takes an initial competitive action in order to build or defend its competitive advantages or to improve market position.

63
Q

Define “The second mover”

A

The second mover is a firm that responds to the first movers competitive action, typically through imitation.

64
Q

Define a “late mover”

A

A late mover is a firm that responds to a competitive action a significant amount of time after the first movers action and the second movers response

65
Q

How can a late mover be successful?

A

They can be successful if they develop a unique way to enter the market and compete.

Strategy and Organisation - UvA (6 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions