MGMT Ch.6 – Flashcards

____ are the assets, capabilities, processes, information, and knowledge that an organization uses to improve its effectiveness and efficiency, to create and sustain competitive advantage, and to fulfill a need or solve a problem

Organizations can achieve a ______ by using their resources to provide greater value for customers than competitors can.

A ____ resource is a resource that is not controlled or possessed by many competing firms.

Allows companies to improve efficiency and effectiveness

impossible or extremely difficult for other firms to duplicate

Produces value and had no equivalent substitutes

The strategy- making process begins with

____ is a discrepancy between a company's intended strategy and the strategic actions managers take when actually implementing that strategy

____ is a reluctance to change strategies or competitive practices that have been successful in the past

A ____ is an assessment of the strengths and weaknesses in an organization's internal environment and the opportunities and threats in its external

Example of core capabilities of an organization

The central companies in a strategic group

In the context of the strategic reference point theory, the _____ strategy aims to protect an existing competitive advantage.

Common approach to corporate- level strategy?

____ is a strategy for reducing risk by buying a variety of items so that the failure of one stock or one business does not doom the entire portfolio

____ is defined as the purchase of a company by another company

A portfolio strategy that managers use to categorize their corporation's business by growth rate and relative market share. This strategy helps them to decide how to invest corporate funds.

The research on diversification in portfolio management indicates that the best approach is probably

The purpose of a ____ strategy is to increases profits, revenues, market share, or the number of places in which the company does business

focuses on improving the way in which the company sells the same product or services to the same customers

Focuses on turning around very poor company performance

Strategic actions taken after retrenchment to return to a growth strategy

A_____ strategy is a corporate strategy that addresses the question "How should we compete in this line of business?"

Five Industry Forces

Measure of the intensity of competitive behavior between companies in an industry

Measure of the degree to which barriers to entry make it easy or hard for new companies to get started in n industry

measure of the ease with which customers can find substitutes for an industry's products or services

Measure of the influence that suppliers of parts, materials, and services to firms in an industry have on the pieces of these inputs

Measure of the influence that customers have on a firm's price

_____ strategies typically work in market niches that competitors have overlooked or have difficulty serving

An industry-level strategy that is best suited to changes in the organization's external environment is an ____ strategy

A company that is seeking to grow by taking risks and looking for innovations is best characterized as a

A company that is seeking moderate grow and customer retention is a

A company that use an inconsistent strategy, respond to changes and are poor performers

blend of defender prospector strategies Seek moderate growth and limited opportunities

the rivalry between two companies that offer similar products and services, acknowledge each other

Resource similarity and _____ are factors that determine the extent to which firms will be in direct competition with each other