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32 Cards in this Set
- Front
- Back
The competitive strategy followed by an organization is derived from its ________________
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structure
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The competitive strategy of an organization determines its _____________
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value chains
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Porter orginally developed the 5 forces model to determine________________________
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the potential profitability of an industry
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Porter's 5 competitive forces can be grouped into two types:
1) Forces related to ______________________ 2) Forces related to _______________________ |
competition, supply chain bargaining power
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Porter's model includes the bargaining power of which of the following groups as one of the 5 factors?
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Customers
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In Porter's 5 factor model, each of the three competitive forces concerns the danger of______________________________
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customers taking their business elsewhere
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Two strength factors that relate to all three competitive forces are ________________ and customer loyalty
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switching costs
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In which of the following cases is the strength of competitive forces low?
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When switching costs are high
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If customers perceive the benefits of a substitute to be similar to that of a product then______________________________________
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the threat from the substitute is strong
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The strength of bargaining power forces depends on the availability of substitutes and ____________________________________compared to the size of suppliers or customers
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the relative size of the firm
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An organization responds to the structure of its structure of its industry by choosing a _______________strategy
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competitive
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Which of the following is an example of a competitive strategy employed by a firm?
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Launching a unique product targeted at a section of consumers
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According to Porter, to be effective the organization's goals, objectives, culture, and activities must be consistent with the ____________________
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organization's strategy
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Porter defined__________as the amount of money that a customer is willing to pay for a resource, product, or service.
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value
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Which of the following is true of a value-chain?
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It is a network of value-creating activities
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A business that selects a differentiation strategy would ______________________________________
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add cost to an activity provided it has a positive margin
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The difference between the value that an activity generates and the cost of the activity is called the______________
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margin
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Collecting, storing, and physically distributing the product to buyers describes which of the following primary activities?
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Outbound logistics
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Inducing buyers to purchase the product and providing a means for them to do so describes which of the following primary activities?
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Sales and marketing
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Each stage of the value chain not only adds value to the product but also__________________
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accumulates costs
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Which of the following is a primary activity in the value chain?
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Delivering products to consumers
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______________________includes general management, finance, accounting, legal and government affairs.
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Firm infrastructure
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Porter's model of business activities includes __________, which are interactions across value activities.
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linkages
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Manufacturing systems that include linkages, use __________________ to plan production.
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sales forecast
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Manufacturing systems use__________to reduce inventory costs
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Linkages
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As Porter says, the processes and systems in an organization pursuing differentiation must _________________________________
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create sufficient value to cover their costs
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If a vlaue chain's margin is positive, the company must___________________________
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retain its present practices
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Organizations gain a competitive advantage by creating new products or services, _______________________and by differentiating their products and services from those of their competitors.
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enhancing products and services
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Which of the following is a process implementation principle of competitive advantage?
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Enhance goods or services
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Which of the following strategies is also called establishing high switching costs?
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Locking in customers
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Which of the following is a process implementation principle of competitive advantage?
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Establishing alliances
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Which of the following is least likely to be an outcome of organizations forming alliances with each other?
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Increase in mutual competitiveness
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