Chapter 4 – Strategic Management & Business Policy – 14th Ed. – Flashcards
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EFAS Table (External Factor Analysis Summary Table)
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A table that organizes external factors into opportunities and threats and how well management is responding to these specific factors
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Entry Barrier
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An obstruction that makes it difficult for a company to enter an industry
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Environmental Scanning
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Quintessential Form of organizational information seeking for gaining new knowledge that enables action
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Environmental Uncertainty
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The degree of complexity plus the degree of change existing in an organization's external environment
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Exit Barrier
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An obstruction that keeps a company form leaving an industry
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Fragmented Industry
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An industry in which no firm has large market share and each firm serves only a small piece of the total market
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Global Industry
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An industry in which a company manufactures and sells the same products, with only minor adjustments for individual countries around the world
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Hypercompetition
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An industry situation in which the frequency, boldness and aggressiveness of dynamic movement by the players accelerates to create a condition of constant disequilibrium and change
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Industry
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A group of firms producing a similar product or service
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Industry Analysis
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An in-depth examination of key factors within a corporation's task environment
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Industry Matrix
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A chart that summarizes the key success factors within a particular industry.
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Industry Scenario
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A forecasted description of an industry's likely future
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Key Success Factor
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Variables that significantly affect the overall competitive position of a company within a particular industry.
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Multidomestic Industry
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An industry in which companies tailor their products to the specific needs of consumers in a particular country.
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Multinational Corporation (MNC)
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A company that has significant assets and activities in a multiple countries
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Natural Environment
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That part of the external environment that includes physical resources, wildlife and climate that are an inherent part of existence on Earth
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New Entrant
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Businesses entering an industry that typically bring new capacity to an industry, a desire to gain market share, and substantial resources
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Regional Industries
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An industry in which multinational corporations primarily coordinate their activities within specific geographic areas of the world
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Societal Environment
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Economic, technological, political-legal, and sociocultural environmental forces that do not directly touch on the short-run activities of an organization but influence its long-run decisions
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STEEP Analysis
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An approach to scanning the societal environment that examines socio-cultural, technological, economic, ecological and political-legal forces. Also called PESTEL analysis.
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Strategic Group
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A set of business units or firms that pursue similar strategies and have similar resources
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Strategic Type
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A category of firms based on a common strategic orientation and a combination of structure, culture, and processes that are consistent with that strategy
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Substitute Product
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Products that appear to be different but can satisfy the same need as other products
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Task Environment
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The part of the business environment that includes the elements or groups that directly affect the corporation and, in turn, are affected by it.
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