Strategic Management Chapters 1-7 Nasser

Front 1

romantic view of leadership

Back 1

situations in which the leader is the key force determining the organization's success or failure.

Front 2

external view of leadership

Back 2

situations in which external forces - where the leader has limited influence - determine the organization's success.

Front 3

strategic management

Back 3

analyses, decisions, and actions an organization undertakes in order to create and sustain competitive advantages.

Front 4

effectiveness

Back 4

tailoring actions to the needs of an organization rather than wasting effort, or "doing the right thing."

Front 5

efficiency

Back 5

performing actions at a low cost relative to a benchmark, or "doing things right."

Front 6

intended strategy

Back 6

strategy in which organizational decisions are determined only by analysis

Front 7

realized strategy

Back 7

strategy in which organizational decisions are determined by both analysis and unforeseen environmental developments, unanticipated resource constraints, and/or changes in managerial preferences.

Front 8

triple bottom line

Back 8

assessment of a company's performance in financial, social, and environmental dimensions.

Front 9

vision statement

Back 9

organizational goals that evoke powerful and compelling mental images.

Front 10

mission statement

Back 10

set of organizational goals that include both the purpose of the organization, its scope of operations, and the basis of its competitive advantage.

Front 11

general environment

Back 11

factors external to an industry, and usually beyond a firm's control, that affect a firm's strategy.

Front 12

complements

Back 12

products or services that have an impact on the value of a firm's products or services.

Front 13

scenario analysis

Back 13

in-depth approach to environmental forecasting that involves experts' detailed assessments of societal trends, economics, politics, technology, or other dimensions of the external environment.

Front 14

SWOT Analysis

Back 14

framework for analyzing a company's internal and external environment.
Strengths, Weaknesses, Opportunities, Threats.

Front 15

value chain analysis

Back 15

strategic analysis of an organization that uses value-creating activities.

Front 16

primary activities

Back 16

inbound logistics, operations, outbound logistics, marketing and sales, and service - contribute to the physical creation of the product or service, its sale and transfer to the buyer, and its service after the sale.

Front 17

support activities

Back 17

procurement, technology development, human resource management, general administration - adding value by themselves or through important relationships with both primary and other support activities.

Front 18

tangible resources

Back 18

including physical assets, financial resources, organizational and technological resources.

Front 19

intangible assets

Back 19

difficult to identify and account for and typically embedded in unique routines and practices, including human resources, innovation resources, and reputation resources.

Front 20

path dependency

Back 20

a characteristic of resources that is developed and/or accumulated through a unique series of events.

Front 21

balanced scorecard

Back 21

evaluating a firm's performance using performance measures from the customers', internal, innovation and learning, and financial perspectives.

Front 22

knowledge economy

Back 22

wealth is created through the effective management of knowledge workers instead of by the efficient control of physical and financial assets.

Front 23

intellectual capital

Back 23

measure of the firm's intangible assets, including reputation, employee loyalty and commitment, customer relationships, company values, brand names, and employee skills and and experience.
market value of firm - book value of firm = intellectual capital

Front 24

tacit knowledge

Back 24

in the minds of employees and is based on their experiences and backgrounds.

Front 25

explicit knowledge

Back 25

codified, documented, easily reproduced, and widely distributed.

Front 26

social network analysis

Back 26

analysis of the pattern of social interactions among individuals

Front 27

groupthink

Back 27

tendency not to question shared beliefs

Front 28

e-teams

Back 28

team of individuals that completes tasks primarily through e-mail communication.

Front 29

Pied Piper Effect

Back 29

teams and networks or people leaving one company for another.

Front 30

overall low-cost leadership

Back 30

generic strategy based on appeal to the industrywide market using a competitive advantage based on low cost.

Front 31

profit pool

Back 31

total profits in an industry at all points along the industry's value chain.

Front 32

competitive parity

Back 32

firm's achievement of similarity, or being "on par", with competitors with respect to low cost, differentiation, or other strategic product characteristic.

Front 33

industry life cycle

Back 33

stages of introduction, growth, maturity, and decline that typically occur over the life of an industry.

Front 34

introduction

Back 34

products are unfamiliar to customers, market segments are not well-defined, product features are not clearly specified. involves low sales growth, rapid technological change, operating losses, and need for financial support.

Front 35

growth

Back 35

strong increases in sales, growing competition, developing brand recognition, need for financing complementary value-chain activities such as marketing, sales, customer service, and R&D.

Front 36

maturity

Back 36

slowing demand growth, saturated markets, direct competition, price competition, strategic emphasis on efficient operations.

Front 37

decline

Back 37

falling sales and profits, increasing price competition, industry consolidation.

Front 38

turnaround strategy

Back 38

reverses a firm's decline in performance and returns it to growth and profitability.

Front 39

focus strategy

Back 39

generic strategy based on appeal to a narrow market segment within an industry.

Front 40

differentiation

Back 40

based on creating differences in the firm's product or service offering by creating something perceived INDUSTRYWIDE as unique and valued by customers.

Front 41

economies of scope

Back 41

cost savings from leveraging core competencies or sharing related activities among businesses in a corporation.

Front 42

core competencies

Back 42

a firm's strategic resources that reflect the collective learning in the organization.

Front 43

sharing activities

Back 43

having activities of two or more businesses' value chains done by one of the businesses: common manufacturing facilities, distribution channels, and sales forces.

Front 44

market power

Back 44

firms' abilities to profit through restricting or controlling supply to a market or coordinating with other firms to reduce investment.

Front 45

vertical integration

Back 45

occurs when a firm becomes its own supplier or distributor. represents an expansion or extension of the firm by integrating preceding or successive production processes.

Front 46

transaction cost perspective

Back 46

the choice of a transaction's governance structure, such as vertical integration or market transaction, is influenced by transaction costs: search, negotiating, contracting, monitoring, and enforcement costs associated with each choice.

Front 47

parenting advantage

Back 47

positive contributions of the corporate office to a new business as a result of expertise and support provided and not as a result of substantial changes in assets, capital structure, or management.

Front 48

mergers

Back 48

combining of two or more firms into a new legal entity.

Front 49

acquisitions

Back 49

incorporation of one firm into another through purchase.

Front 50

greenmail

Back 50

an effort by the target firms to prevent a takeover by buying back stock from the hostile company at a higher price than the unfriendly company paid for it - preventing a takeover and protecting jobs.

Front 51

poison pill

Back 51

shareholders are given certain rights in the event of a takeover by another firm
.

Front 52

factor conditions (national advantage)

Back 52

nation's position in factors of production, such as skilled labor or infrastructure, necessary to compete in a given industry.

Front 53

demand conditions (national advantage)

Back 53

nature of home-market demand for the industry's product or service.

Front 54

currency risk

Back 54

potential threat to a firm's operations in a country due to fluctuations in the local currency's exchange rate.

Front 55

licensing

Back 55

enables a company to receive a royalty or fee in exchange for the right to use its trademark, patent, trade secret, or other valuable item of intellectual property.

Front 56

franchising

Back 56

company receives a royalty or fee in exchange for the right to use its intellectual property - involving a longer time period than licensing and includes monitoring of operations, training, advertising.

Front 57

wholly owned subsidiary

Back 57

business in which a multinational company owns 100% of the stock by acquiring an existing company in the home country or developing a new operation.

Front 58

exporting

Back 58

producing goods in one country to sell to residents of another country.

Front 59

outsourcing

Back 59

using other firms to perform value-creating activities that were previously performed in-house for cost or quality reasons.

Front 60

_____entails the creation of a third party, while_____does not.

Back 60

joint ventures; strategic alliances

Front 61

according to studies by Rugman and Verbeke, approximately how many of the world's largest 500 firms are global - having 20% of their total revenue in N. America, Asia, Europe?

Back 61

10%

Front 62

recent trends that might lead managers of multinational corporations to adopt a more decentralized strategy for their operations would include all of the following except:

Back 62

consumers around the world are increasingly willing to trade off idiosyncratic preferences in product features for lower prices.

Front 63

in the BCG matrix, a business with low market share in an industry with high market growth is termed a:

Back 63

question mark

Front 64

which of the following is most often true of mature markets?

Back 64

advantages that cannot be duplicated by other competitors are difficult to achieve.

Front 65

the most likely time to pursue a harvest strategy during:

Back 65

decline

Front 66

the growth stage of the industry life cycle is characterized by:

Back 66

premium pricing

Front 67

the experience curve suggests cutting prices is a good strategy:

Back 67

if it can induce greater demand and thereby help a firm travel down the experience curve faster.

Front 68

stars

Back 68

strategic business unit competing in a high growth industry with high market share.
Long-term growth potential, receives substantial investment funding

Front 69

cash cows

Back 69

high market share in low-growth industries. limited long-run potential but represent source of current cash flows to fund STARS AND QUESTION MARKS

Front 70

dogs

Back 70

weak market share in low-growth industries. because of their weak positions and limited potential, they should be divested.

Front 71

environmental scanning

Back 71

surveillance of a firm's external environment to predict environmental changes and detect changes already under way

Front 72

environmental monitoring

Back 72

firm's analysis of the external environment that tracks the evolution of environmental trends, sequences of events, or streams of activities.

Front 73

competitive intelligence

Back 73

firm's activities of collecting and interpreting data on competitors, defining and understanding the industry, and identifying competitors' strengths and weaknesses.

Front 74

environmental forecasting

Back 74

development of plausible projections about the direction, scope, speed, and intensity of environmental change.