MGT 491 – Flashcards
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Above-average returns are
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returns in excess of what an investor expects to earn from other investments with a similar level of risk
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New markets created by Ipods, PDAs, and WIFI are a result of
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Disruptive technologies
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The ability to effectively and efficiently access and use information is
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An important source of competitive advantage in virtually all industries
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Which of the following statements about organizational knowledge is correct?
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All of the choices are correct
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The industrial organization (I/O) model argues that
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The key factor in success is choosing the correct industry in which to compete
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The three parts of the external environment which affects a firms strategic actions are
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General, Industry, and competitor
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The environmental segments that comprise the general environment typically will NOT include
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Substitute products or services
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Which of the following is NOT an activity used in the external environmental analysis process
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Decrypting
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When analysts develop feasible projections of future events and how quickly they will occur based on observed changes and trends, they are engaged in
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Forecasting
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The likelihood of entry of new competitors is affected by _________ and ___________
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Barriers to entry, expected retaliation of current industry organizations
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Which of the following is NOT a factor affecting sustainability of a competitive advantage
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The length of time the core competence has existed
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Internal analysis a firm to determine what the frim
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Can do
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Which of the following is not a component of internal analysis leading to competitive advantage
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Analysis of supplier power
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Valuable capabilities
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Allow the firm to exploit opportunities or neutralize threats in its external environment
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Capabilities that other firms cannot develop easily are classified as
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Costly to imitate
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Business level strategies detail commitments and actions taken to provide value to customers and gain competitive advantage by exploiting core competencies in
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Specific product markets
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In order to meet and exceed customers' expectations, firms must
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Continuously improve, innovate, and upgrade their core competencies
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The three dimensions of a firm's relationships with customers include all of the following except
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Exclusiveness
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All of the following are considered generic business level strategies except
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Product diversification
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A company using a narrow target market in its business strategy is
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Limiting the group of customer segments served
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The effectiveness of any of the generic business-level strategies is contingent upon
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The match between the opportunities and threats in its external market and the strengths of its internal enviroment
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A cost leadership strategy provides goods and services with features that are
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Acceptable
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Research suggest that having a competitive advantage in ____ creates more value in the cost leadership strategy than it does in the differentiation strategy
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Logistics
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A company pursuing the differentiation or focused differentiation strategy would tend to
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develop flexible systems that allow rapid response to customers changing needs
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Ever improving levels of efficiency enhance profit margins for a cost leader. This affects which of the five forces of industry structure most directly.
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Potential entrants
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Competitive rivalry has the most effect on the firm's ____ strategies than the firm's other strategies
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business- level
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Multimarket competition occurs when firms
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Compete against each other in several geographic or product markets
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Firms with ____ market commonality and ____ resource similarity are direct and mutually acknowledged competitors
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High: high
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The competitive actions and responses in _____ markets are designed to seek large market shares, to gain customer loyalty through brand names, and to carefully control the firm's operations in order to consistently provide the same positive experience for customers
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Standard- cycle
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Lawsuits over patent and copyright infringements are more common and intense in
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slow- cycle markets, because of the ability to shelter the company from imitation of its competitive advantage
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5 Main forces?
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Buyer Power, Supplier Power, Threat of Substitutes, Threat of New Entrants, and Industry Rivalry
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FOUR components to the Resource-Based Model:
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Resources, Capabilities, Core Competencies, Competitive Advantage
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Core Competencies:
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Valuable, Rare, Inimitable, Non-substitutable
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The components that make up the external environment
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Turbulent, complex, global, uncertain, ambiguous, imcomplete
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Actions involved with analyzing the external envirnoment
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Scanning, Monitoring, Forecasting, Assessing
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Tangible
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physical
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Intangible
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human, innovation
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4 Main categories of generic business strategy
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Cost leadership, differentiation, focused cost leadership, focused differentiation
