Quickfire business + MET

What is the neoclassical theory of the firm

Firms can be reduced to maths, input labour and capital, output goods

What is a supply chain

Three or more companies

Linked by flows

Of products services finances and information

What are the two sources of invention

Technology push, market pull

What is Analogy & Transfer

See something and adapt it for a different field. Eg sticky plant balls inspired velcro

What is mapping (technology push)

Finding gaps to invent in. Eg the resistor and inductor both had mechanical parallels (damper and spring) but the capacitor did not (inerter)

What is the transaction costs theory of the firm

The market has more transactions, save money by being a firm instead

What is the property rights view of the firm

Owning stuff is good if things go wrong bc you don’t have to worry about contracts

What is the Marxist view of the firm

Make profit by paying workers less than they make you

What is a managerial theory of the firm

Shareholders want to maximise profit but managers want to maximise their welfare

What is a behavioural theory of the firm

Uncertainty makes optimisation impossible. Workers work better with rewards

What is a capabilities approach to the firm

Having skills gives competitive advantage and causes firms to exist

What are evolutionary theories of the firm

Some firms grow bc they get lucky

What is MES

Minimum efficient scale- costs go down as a firm grows, then up again as it becomes more complex

What constrains growth of a firm

Money, technology, market size, management skills and objectives

What is horizontal expansion

Doing more of the same thing (car company buys car company)

What is vertical integration

Doing a different part of the big picture (car company buys tyre company)

What is a conglomerate

Merging unrelated firms (amazon buying a film studio)

How does the government correct market distortion

Taxes

What is a collusion

Two competing firms have a secret sometimes not allowed agreement to raise prices together or divide the market

What is predatory pricing

Accept a loss and lower prices until your competition goes bust, then raise prices again

What is Porter all about

Being unique, different, deepen don’t diversify

What is Barney’s strategy lens

Have capabilities that are hard to imitate

What is Adner’s strategy lens

Partnerships most key

What is McGrath’s strategy lens

Agility key, no such thing as uniqueness, only ability to move in and out fast

What is the right amount of diversification

A moderate amount (inverted U shape for performance vs diverseness)

What is VRIO

Valuable rare inimitable organised, needed for sustained competitive advantage

Marketing strategy what is STP

Segmentation Targeting Positioning

What are the four P’s of marketing tactics

Product (value creation)

Promotion (value communication)

Place (value delivery)

Price (value capture)

Does a promotion give long term advantage

No, sales spike then dip after, no net revenue increase

How do you do segmentation

Think about customer needs, wants, behaviours, descriptors

What is positioning in market strategy

Having significant and meaningful differentiation from the competitors in the mind of the customer

Why do digital products diffuse faster

More easily scalable

What is social contagion theory

The internet lets attitudes, emotions, behaviours and beliefs spread so fast it is like a virus (ice bucket challenge)

What are porters five forces (we want to mute them or exploit weak forces)

Rivalry amongst existing competitors

Threat of new entrants

Threat of substitute products

Bargaining power of buyers

Bargaining power of suppliers

What goes in the brand positioning statement

The target customers, the competition, the USP

What is 3C analysis

Company, customer, competitor. Happens before segmentation

What is a customer insight

A deep understanding about the motivations that underly customer behaviour

VRSIO

Valuable, rare, (not) substitutable, (not) imitable, organised

5 types of stakeholder

Initiator influencer decider buyer user