Untitled Flashcards Set

What is the application of information and technology to raise human performance?

Knowledge management

Which of the following indicates the choices the firm has made about how it intends to compete in individual product markets?

Business-level strategy

What is the one thing every firm must develop and implement?

A business-level strategy

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

Who its target customers will be

What is the process of dividing customers into groups based on their needs?

Market segmentation

What do firms use to subdivide a market into segments that differ from one another on a given characteristic?

Segmentation variables

Which of the following defines the path that provides the direction of actions organizational leaders take to help their firm achieve success?

Strategy

Which of the following describes what a firm does to create, deliver, and capture value for its stakeholders?

Business model

One of the following is used to describe how the firm will create, deliver, and capture value?

Business model

The Freemium model, the advertising model, and the peer-to-peer model are all part of which of the following?

Internet business models

Which is an integrated set of actions taken to produce products with features that are acceptable to customers at the lowest cost, relative to that of competitors?

Cost leadership strategy

Walmart follows a low cost strategy. Which of the following is most accurate and enables them to follow this strategy?

Efficient scale facilities

Which of the five business-level strategies is inherently or universally superior to the others?

None

Competitors of companies like Walmart and Dollar General follow which of the following strategies?

Cost leadership strategy

Which of the following may be the foundation on which a firm might choose to integrate an outsourcing firm into its value chain to find ways to reduce its costs further?

A strategic cost driver

Which of the following make it necessary for the cost leader to sell large volumes of its product to earn above-average returns?

Economies of scale

A cost leadership strategy is not risk free. Which of the following is correct as it pertains to the competitive risks of cost leadership?

Competitors may imitate the cost‑leader’s value‑chain approach

Which of the following is an integrated set of actions taken to produce products (at an acceptable cost) that customers perceive as being different in ways that are important to them?

Differentiation strategy

Because a differentiated product satisfies customers’ unique needs, firms following the differentiation strategy are able to do what?

Command premium prices

Firms develop and use TQM systems to achieve which of the following?

Continuous process improvement

The total of all the individual rivalries, such as likelihood of attack and likelihood of response, that occur in a particular market reflects what in that market?

Competitive intensity

What is the first step the firm takes to predict the extent and nature of its rivalry with each competitor?

Assess competitor objectives

Which of the following refers to the number of markets in which firms compete against each other?

Multimarket competition

Firms competing against one another in several markets engage in what?

Multimarket competition

What is the extent to which the firm’s tangible and intangible resources compare favorably to a competitor’s in terms of type and amount?

Resource similarity

Which of the following is a prerequisite to any competitive action or response taken by a firm?

Awareness

Awareness tends to be greatest when?

Competitors are market‑common

Which of the following concerns the firm’s incentive to take action or to respond to a competitor’s attack, relates to perceived gains and losses?

Motivation

Ability relates to what?

Resource availability

Which of the following is an example of resource dissimilarity?

Differences in organizational culture

Which of the following is a strategic or tactical action the firm takes to build or defend its competitive advantages or improve its market position?

Competitive action

What is a competitive response?

A counteraction to a competitor’s competitive action

When must firms recognize the differences between strategic and tactical actions and responses and develop an effective balance between them?

At all times

When a firm takes an initial competitive action to build or defend its competitive advantages or to improve its market position it is engaging in what?

First‑mover advantage

Which of the following about First Movers is NOT true?

They always sustain superior performance

Which of the following is a firm that responds to the first mover’s competitive action, typically through imitation?

Fast follower

What exists when the firm’s products meet or exceed customers’ expectations?

Quality

Timeliness, courtesy, consistency, and convenience constitute which of the following?

Service quality

Three of the following are triggers for a firm to respond to a competitors action, one is not, which is not?

The firms have resource dissimilarity

In the context of competitive rivalry, an actor is what?

Any firm taking an action in the marketplace

The ongoing actions and responses among all firms competing within a market for advantageous positions is what?

Competitive rivalry

This is a strategy that specifies actions a firm takes to gain a competitive advantage by selecting and managing a group of different businesses competing in different product markets?

Corporate‑level strategy

Which of the following is a primary form of corporate-level strategy?

Diversification

When is a firm related through its diversification?

When it operates in a number of businesses that share similar products, markets, or resource deployments

What is a corporate-level strategy wherein the firm generates 95 percent or more of its sales revenue from its core business area called?

Dominant‑business diversification

What strategy is being used when the firm generates between 70 and 95 percent of its total revenue within a single business area?

Related‑constrained diversification

A highly diversified firm that has no relationships between its businesses follows which strategy?

Unrelated diversification

Firms using an unrelated diversification strategy are called what?

Conglomerates

What are cost savings a firm creates by successfully sharing resources and capabilities or transferring one or more corporate-level core competencies that were developed in one of its businesses to another of its businesses?

Economies of scope

How can firms create operational relatedness?

By sharing activities in the value chain between businesses

What are complex sets of resources and capabilities that link different businesses, primarily through managerial and technological knowledge, experience, and expertise called?

Core competencies

One of these is how managers facilitate the transfer of corporate-level core competencies, which of these is utilized?

Corporate‑level centralization of certain functions

When does market power exist?

When a firm’s profitability exceeds the average profitability for its industry

What term is used when a company produces its own inputs (backward integration) or owns its own source of output distribution (forward integration)?

Vertical integration

What strategy is commonly used in the firm’s core business to gain market power over rivals?

Vertical integration

What does one call cost savings which are realized through improved allocations of financial resources based on investments inside or outside the firm?

Financial economies

One of the following prohibits mergers that created increased market power, which is it?

Hart‑Scott‑Rodino Antitrust Improvements Act

Liquid financial assets for which investments in current businesses are no longer economically viable are called what?

Cash cows

As a firm’s product line is threatened, what strategy may the firm employ?

Retrenchment

What exists when the value created by business units working together exceeds the value that those same units create working independently?

Synergy