MGMT 3000 Jeopardy Review

Which activity of managing organizations (the alpha activity according to Lyons) encompasses the following question: How does the competitive landscape shape the potential for success or failure?

Strategy (inverted triangle) or Strategic Positioning (pillar view)

A business framework that identifies and analyzes multiple groups that interact with the firm and attempts to align organizational practices to satisfy the needs of these various constituencies

Stakeholder view of the firm

A tool that managers use to scan the business horizon for key events and trends that will affect the business in the future

Environmental Scanning

Forecasting the likely result that might occur when several events and stakeholders are linked together

Scenario Building

The systematic assessment of the external environment to prepare for a possible range of alternative futures for the organization

Contingency Planning

The firm context consisting of competitors, suppliers and customers is the 1)—, while the firm context consisting of technological, economic, politcal/legal, and sociocultural dimensions is the 2)-

1) Task Environment

2) General Environment

The trade agreement that replaced NAFTA in 2020 providing stronger rules on labor and environmental standards

USMCA (United States Mexico Canada Agreement)

____ is the Hofstede term which describes the degree to which people in a culture or country are uncomfortable with unstructured, ambiguous, unpredictable situations.

Uncertainty Avoidance

Applying a SWOT analysis, declining customer demand for landfill waste disposal, increasing customer expectation of greater waste recycling and less landfill waste disposal, and pressure from environmental groups for environmentally-sensitive waste disposal each represented a(n) _____ in WMI's ______  environment.

1) Threats

2) External

The principle underlying the idea of globalization that countries should specialize in producing goods for which they have the lowest opportunity cost of production.

Comparative Advantage

While many claim that this provides the moral backbone to businesses, in reality, it often simply reflect society's minimum standards

The Law

While common in some countries as a way to gain an illicit advantage, the Foreign Corrupt Practices Act ("FCPA") generally makes this practice illegal for a U.S company or a company listed on a U.S. stock exchange

Bribery

The ethical philosophy claiming that behaviors are considered moral if they produce the greatest good, or utility, for the greatest number of people

Utilitarianism

An ethical philosophy claiming that motives and universal rules are important aspects in judging what is right or wrong

Kantianism

The disclosure of information by a member of an organization that is evidence of illegal or immoral conduct to executives in a company or regulating agencies outside a company

Whistleblower

Pursuing a set of unique activities that provide value to customers; making trade-offs about which businesses to pursue, what products to produce, and which customers to serve; and aligning resources to achieve organizational objectives

Strategy

A firm achieves it when it creates more economic value than competitors by engaging in a strategy that is difficult or impossible for others to duplicate

Competitive Advantage

Apple has demonstrated a sustained ability to design, manufacture and market products that seamlessly integrate hardware and software, and which offer a superior user experience compared to competing products. Under the resource view of sustainable competitive advantage, the inability of other companies to copy or come up with a different product to effectively compete with Apple's products, suggests that Apple has resources that are _____ and _____.

1) Imperfectly Immitable

2) Non-substituable

Under the Strategic Framework, after assessing the external and internal environments, it is the next step in the strategy-making process

Formulating Vision and Mission

A time in the life of a business or industry when its fundamentals are about to change.

Strategic Inflection Point

Name the Five Forces of Porter's Five Forces Model

1) Threat of New Entrants

2) Bargaining Power of Customers

3) Threat of Substitutes

4) Bargaining Power of Suppliers

5) Rivalry Among Existing Competitors

The primary thing that reduces the Threat of New Entrants in a

particular industry (hint: 5-Hour Energy's strategy circumvented this)

Barriers to Entry

Choosing an iPhone because you don't want to be the only "green message" among other iPhone users, is an example of this.

Demand-side Benefits of Scale (network effect)

Name at least one factor that increases the power of suppliers

• Supplier's industry more concentrated than your industry

• There are no substitutes for the supplier's products

• The supplier limits production

• The supplier does not consider the industry as one of its major customers

The force within Porter's Five Force that Lyons believes is the greatest threat to traditional universities like UGA, which are built around face-to-face instruction.

Threat of Substitutes

The act of growing through unrelated diversification, essentially by acquiring companies in different industries

Conglomeration

Corporate-level strategy in which a firm pursues businesses that share a similar set of tangible and intangible resources

related diversification (resources)

Using Porter's 5 Forces and corporate-level strategy concepts, explain why T-Mobile's acquisition of Sprint thus far has been successful (compared to say AT&T's acquisition of Time-Warner).

1) Existing structure of Wireless Industry: Low Threats of New Entrants and Substitutes

2) Relatively low supplier bargaining power

3) Market Consolidation Reducing Rivalry Among Existing Competitors

4) The existence of clear synergies

Name at least one of the two beneficial elements that need to be transferred and shared in order to create value in a related diversification strategy

1. Transferring and sharing of skills

2. Transferring and sharing of resources

Using Porter's 5 Forces, briefly explain how forward vertical

integration in the video streaming industry is threatening Netflix.

Video content providers such as Disney, NBC, HBO, etc. are integrating forward in the supply chain by offering their own subscription streaming service directly to the customer, thereby (i) increasing the Threat of New Entrants (with suppliers becoming competitors); (ii) increasing Bargaining Power of Suppliers (making content scarce and expensive); and (iii) increasing Rivalry Among Competitors.

The number and the intensity of external factors in the environment that affect organizations

Environmental Complexity

The two elements of uncertainty

1) Environmental Change

2) Environmental Complexity

The four-step process in which stakeholders, their relationships, stakes, and connections are identified and diagramed

The stakeholder mapping process

The theory depicted in this diagram: Stable Environment and Dynamic Environment

Punctuated Equilibrium Theory (companies and industries cycle through stable and dynamic environments)

The ability to understand the impact of environmental factors on a firm and the ability to understand how to influence those same factors

Contextual Intelligence (the “goal”)

Good news for the tobacco industry. For 10 years, the U.S. gov. forced tobacco companies to make payments totaling $9.6 billion to tobacco farmers to help them cope with deregulation of tobacco farming. Those payments stopped in 2015. This good news falls primarily within the ______  dimension of the  tobacco companies' ____  environment.

1) Supplier

2) Task

Bad news for the tobacco industry. The F.D.A. is proposing the unprecedented step of implementing regulation that would limit the amount of nicotine in cigarettes (the addictive substance). This proposed regulation falls primarily within the _____ dimension of the tobacco companies' ____  environment.

1) Political/Legal

2) General

Things like zero-waste intiatives and a bias for recycling and against the use of landfills represent a change (a threat) in the _____ element of WMI's general environment and in the ____ element of WMI's task environment.

1) Socio-Cultural

2) Customer

When a customer goes online to purchase clothing directly from J. Crew on J. Crew's website, rather than from a retail clothing outlet, this is an example of ____ is which is occurring in the _____, element of J. Crew's general environment, and in the ____  element of J. Crew's task environment.

1) Disintermediation

2) Technological

3) Customer

When a multinational company has offices, manufacturing plants, distribution facilities, and subsidiaries in multiple countries, and gives them autonomy to develop and adapt products tailored to local tastes, this can be described as:

Multinational Strategy and Local Adaptation

The circumstance that exists, by definition, in every ethical dilemma-its' what creates the ethical dilemma in the first instance.

Conflict of Interest

The name of this pyramid and the four elements of the pyramid:

Pyramid of CSR

1) Discretionary

2) Ethical
3) Legal

4) Economic

Genetically modifying disease-carrying mosquitos into extinction is not the ethical choice because genetic modification for the purpose of causing the extinction of a species is akin to "playing God" and not a practice that humanity wants to see become a universal practice. This view reflects the _____ ethical decision-making framework.

Kantian

A CEO known for setting high standards in the treatment of her company's major stakeholders; creating her own vision for the company and running the company to her own high standards of CSR, which exceed the expectations of those inside or outside the company, could be said to be operating at the ____ level of moral development.

1) Post-conventional 

These are the three steps in the strategy definition process

1) Choosing a Set of Activities

2) Making Trade-Offs

3) Creating fit Among Activities

The global market entry strategy in which a company maintains its production facilities in its home country and ships its product to foreign markets for sale

Exporting

____ is the way a company seeks to create value through the configuration and coordination of multimarket activities, while _____ is the determination of how a company will compete in a given business and position itself among its competitors

1) Corporate Level Strategy

2) Business Level Strategy

One of the key disadvantages of market entry strategies like licensing, franchising and joint ventures.

1) Loss of Intellectual Property

2) Partner becoming a new competitor

3) Loss of control

Apple and Foxconn (among many other companies) have started moving the manufacture of Apple's products from ____ (country #1) to ____ (country #2), in part to reduce the risk of ____ arising from having Apple's products manufactured only in one country.

1) China

2) India

3) Concentration

With respect to the hotel industry, the advent of Airbnb, VRBO, and the like could be characterized as a ____ under Clayton Christensen's Innovator's Dilemma construct (theory)

Disruptive Innovation

Under the S-Curves and Innovation Streams Models, the introduction of the iPhone was an example of this event for many different (and unfortunate) industries

Technological Discontinuity

Under Porter's Five Forces Model, the bargaining power of your customers will increase (be high) when this characteristic becomes true about your firm's products) (i-e., when your product becomes ____)

1) Commoditized or Undifferentiated

Best description of Southwest Airlines’ Strategy

Low-Cost Leadership

Best Description of Spirit Airline’s Strategy

Low-Cost Focus

When Asustek went from designing and manufacturing. PC's for Dell to creating and distributing it's own branded PC's to retail outlets like BestBuy for sale to the consumer, Asustek engaged in this supply-chain strategy

Forward Integration

When Netflix went from distributing video content created by movie and television production companies, to creating its own content to distribute on its digital platform, Netflix engaged in this supply-chain strategy

Backward Integration

According to the textbook (Figure 6.6, Impact of Diversification on Firms' Performance), this corporate-level strategy is associated with the best firm performance towards the very beginning of the supply chain.

Related Diversification

Apple has made hundreds of billions of dollars on its iPhone, spends something like $10 billion annually on R&D, and devotes a substantial portion of that budget to development of the Watch. Last year, sales of the Watch were up over 50%. Applying the BCG matrix, Apple's iPhone would best be described as a ____ while its iWatch would best be described as a ____

1) Cash Cow

2) Star

At least two of the Three Elements of the Diversification Test (Figure 6.5)

1) Attractiveness Test

2) Cost of Entry Test

3) Better-Off Test