Corporate Strategy, Global Strategy, Organizational Design, Corporate Governance, Business Strategy

A comprehensive set of flashcards covering key terms and concepts from the lecture notes on corporate strategy, global strategy, organizational design, corporate governance, business strategy, and innovation.

Corporate Strategy

The overall plan and direction for a company that encompasses strategic alliances, mergers, acquisitions, and organizational design.

Strategic Alliance

A voluntary agreement between firms to share knowledge, resources, or capabilities for mutual benefit.

Mergers

The joining of two independent companies to form a new entity, typically seen as friendly.

Acquisitions

The purchase or takeover of one company by another, which can be friendly or hostile.

Horizontal Integration

The process of merging with competitors to reduce competitive intensity and costs.

Vertical Integration

The ownership of inputs or distribution channels in a value chain, which can be backward or forward.

Build-Borrow-Buy Framework

A strategic framework used to determine whether a company should develop resources internally, enter a relationship to borrow resources, or acquire them.

Competitive Advantage

A condition that allows a company to perform better than its competitors.

CAGE Distance Framework

A framework used to assess the cultural, administrative, geographic, and economic distances between countries.

Global Strategy

A firm's corporate strategy to gain and sustain competitive advantage in international markets.

Multinational Enterprise (MNE)

A company that deploys resources and capabilities in two or more countries.

Foreign Direct Investment (FDI)

Investments in value chain activities abroad by a firm.

Value Chain

The full range of activities that businesses engage in to bring a product or service from conception to delivery.

Organizational Design

The process of creating and modifying the structure of an organization to achieve strategic goals.

Organizational Structure

The way in which the tasks within an organization are divided, organized, and coordinated.

Mechanistic Organization

An organization characterized by high specialization, formalization, and a tall hierarchy.

Organic Organization

An organization characterized by low specialization, informal structures, and decentralized decision-making.

Corporate Governance

The mechanisms, processes, and relations by which corporations are controlled and directed.

Agency Theory

A theory explaining the relationship between principals (shareholders) and agents (company executives) and the inherent conflicts of interest.

Board of Directors

The governing body that represents shareholders' interests and oversees the company's management.

Principal-Agent Problem

The conflict of interest that arises when agents (managers) do not act in the best interests of principals (shareholders).

Business Ethics

An agreed-upon code of conduct that guides the behavior of individuals and organizations.

Business Model

The plan implemented by a company to generate revenue and make a profit from operations.

Long-Tail Concept

A business model innovation that capitalizes on niche markets by selling a wide range of products with low sales volumes.

Innovation

The process of translating an idea or invention into a good or service that creates value or for which customers will pay.

Disruptive Innovation

An innovation that significantly alters the way that consumers, industries, or businesses operate.

Platform Business Model

A business model that creates value by facilitating exchanges between two or more interdependent groups, typically consumers and producers.

Pipeline Business Model

A business model characterized by a linear progression of value creation.

Cost Leadership Strategy

A strategy aimed at being the lowest-cost producer in the industry.

Differentiation Strategy

A strategy aimed at providing unique value through product and service features.

Focus Strategy

A strategy that targets a specific market niche.

Transaction Costs

Costs incurred in making an economic exchange, including searching for information and negotiating contracts.

Vertical Diversification

The strategy of expanding into different stages of production or distribution within the same industry.

Product Diversification

The strategy of increasing the variety of products or services offered by a company.

Geographic Diversification

The strategy of expanding into different geographic markets.

Related Diversification

A strategy where a company expands into businesses that are related to its existing operations.

Unrelated Diversification

A strategy in which a company expands into industries that have no direct relation to its current operations.

Core Competence

A specific set of skills or capabilities that provides a competitive advantage by allowing a company to produce a product or service significantly better or more efficiently.

Joint Ventures

Creation of a new business entity funded by two or more parties which share profits, losses, and control.

Acquisition Strategies

Methods a firm uses to acquire control of another company, often with the intention of gaining competitive advantages.

Economic Arbitrage

The practice of taking advantage of price differentials in different markets.

Global Standardization Strategy

A strategy that seeks to reduce costs by making products that cater to the needs of the global market rather than local preferences.

Transnational Strategy

A strategy that seeks to achieve both global efficiency and local responsiveness.

Hierarchical Structure

The formal arrangements of teams and reporting relationships in an organization.

Span of Control

The number of employees directly supervised by a manager.

Specialization

The degree to which tasks are divided into separate jobs.

Formalization

The extent to which rules and procedures govern behavior in an organization.

Centralization

The degree to which decision-making authority is concentrated at the top levels of the organizational hierarchy.

Mechanistic Structure

An organizational structure characterized by high formalization and centralization.

Organic Structure

An organizational framework that is more flexible and characterized by low formalization and decentralization.

Restructuring

The act of reorganizing the structure and operations of a company, often with the aim of improving performance.

Competitive Dynamics

The ongoing actions and competitive responses among firms in an industry.

Cultural Distance

Differences in values, beliefs, and behaviors between countries that can influence international business.

Economic Distance

Differences in consumer wealth and income levels that can impact cross-border trade.

Administrative Distance

Factors that impact business transactions due to political or governmental differences.

Geographic Distance

The physical distances between countries that may inhibit business interaction.

Market Penetration Strategy

A strategy focused on selling existing products to existing markets.

Market Development Strategy

A strategy focused on selling existing products to new markets.

Product Development Strategy

A strategy that involves creating new products for existing markets.

Diversification Strategy

A strategy that involves entering new markets with new products.

Boston Consulting Group (BCG) Matrix

A tool for analyzing business units or product lines based on market growth and market share.

Star Segment

A category in the BCG matrix marked by high market growth and high market share.

Cash Cow Segment

A category in the BCG matrix marked by low market growth and high market share.

Question Mark Segment

A category in the BCG matrix marked by high market growth and low market share.

Dog Segment

A category in the BCG matrix marked by low market growth and low market share.

Ambidextrous Organization

An organization capable of managing both exploratory and exploitative strategies.

Innovation Ecosystem

The network of organizations and individuals involved in the innovation process.

Threshold Capabilities

Basic organizational capabilities required for a firm to compete in its industry.

Dynamic Capabilities

The ability of a firm to integrate, build, and reconfigure internal and external competencies to address rapidly changing environments.

Competitive Strategy

The approach a firm takes to gain a competitive advantage in its industry.

Resource-Based View

A management framework that focuses on the resources and capabilities of a firm as a source of competitive advantage.

Network Effects

The phenomenon whereby increased numbers of other participants improve the value of a product or service.

Data-driven Decision-Making

The practice of basing decisions on the data collected through analysis rather than intuition.

E-commerce Strategy

Business strategies specifically designed for online commerce.

Disruption Strategy

A competitive strategy focused on changing the business landscape with innovative solutions.

Rapid Prototyping

An approach for quickly converting ideas into actual prototypes for testing.

Agile Methodology

A project management method that utilizes iterative processes and customer feedback.