Term
| sustainable competitive advantage |
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Definition
| when other companies cannot duplicate the value a firm is providing to customers. |
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Term
| factors leading to S.C.A. |
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Definition
| valuable resources, rare resources, imperfectly imitable resources, non substitutable resources |
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Term
| what two aspects of a company can only allude to s.c.a of a company |
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Definition
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Term
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Definition
| a reluctance to change strategies or competitive practices that have been successful in the past |
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Term
| who does competitive inertia effect in a company |
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Definition
| top managers unwilling to abandon old techniques |
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Term
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Definition
| a discrepancy between a company's intended strategy and the strategic actions managers take when actually implementing that strategy |
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Term
| who does strategic dissonance effect in a company |
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Definition
| middle managers who don't implement part of the strategy |
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Term
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Definition
situational analysis to help managers determine the need for strategic change through:
strengths; internal
weaknesses; internal
opportunities;external
threats;external |
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Term
| strategic reference point theory |
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Definition
| a choice between two basic alternative strategies:conservative, risk avoiding strategy during satisfaction or aggressive, risk seeking strategy during dissatisfaction |
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Term
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Definition
determine need for strategic change
conducting situational analysis
choose strategic alternatives (reference point theory) |
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Term
| strategic reference points |
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Definition
| are the targets that managers use to measure whether their firm has developed the core competencies that it needs to achieve a s.c.a. such as using customer surveys to track a high quality service |
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Term
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Definition
| corporate level strategy (what business or businesses are we in or should we be in?) that minimizes risk by diversifying investment among various businesses or product lines |
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Term
| unrelated diversification |
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Definition
| portfolio strategy to reduce risk by creating or acquiring companies in completely unrelated businesses because losses in one should have minimal effect on the other |
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Term
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Definition
portfolio strategy to categorize their corporation's businesses by growth rate and relative market share with 4 terms:
stars
question marks
cash cows
dog |
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Term
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Definition
large share of fast growing market.
create using money from cash cows.
high market growth
large market share |
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Term
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Definition
bcg matrix
high market growth
small relative market share
may eventually become stars so risky
need enough of these but not too many |
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Term
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Definition
low market growth
large market share |
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Term
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Definition
bcg matrix
small market share
low market growth
not adding to company |
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Term
| risk and portfolio strategy |
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Definition
u shaped risk and diversification.
risk goes down as you add related products and up as you add unrelated products.
counter intuitive to portfolio strategies
present performance is not good enough indicator of future performance.
cash cows fail to pursue opportunities and set up defenses from threats |
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Term
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Definition
best approach
different business units share similar products, manufacturing, marketing, technology, or cultures. |
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Term
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Definition
broad strategic plans used to help an organization achieve its strategic goals:
growth
stability
retrenchment/recovery |
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Term
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Definition
increase profits, revenues, market share, or the number of places in which the company does business.
externally;merging with or acquiring new companies
internally;expand existing business or creating and growing new business |
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Term
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Definition
| continue doing what company has being doing, just doing it better |
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Term
| retrenchment grand strategy |
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Definition
| turn around very poor company performance by shrinking the size or scope of the business or if a company is in multiple businesses by closing or shutting down different lines of the business. including recovery stage. similar to cutting roses so they grow back stronger |
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Term
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Definition
| second part of retrenchment strategy to return to a growth strategy |
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Term
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Definition
how should we compete in this industry?
industry forces model |
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Term
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Definition
determines overall attractiveness and potential for long term profitability.
character of rivalry includes:
threat of new entrants
bargaining power of suppliers
bargaining power of buyers
threat of substitute products or services |
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Term
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Definition
| measure of intensity of competitive behavior among companies in an industry |
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Term
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Definition
| measure of the degree to which barriers to entry make it easy or difficult for new companies to get started in an industry |
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Term
| threat of substitute products or services |
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Definition
| measure of the ease with which customers can find substitutes for an industry's products or services |
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Term
| bargaining power of suppliers |
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Definition
| measures of the influence that suppliers of parts, materials, and services to firms in an industry have on the prices of these inputs |
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Term
| bargaining power of buyers |
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Definition
| measure of the influence that customers have on the firm's prices |
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Term
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Definition
next step in industry level strategy with protection from negative effects of industry wide competition and to create s.c.a. via:
cost leadership
differentiation
focus strategy |
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Term
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Definition
| producing acceptable quality at lower costs than competitors which deters new entrants, increases bargaining power with suppliers |
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Term
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Definition
| making product different than competitors which reduces threat of substitute products |
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Term
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Definition
| targeting a specific group with the two other positioning strategies that competitors overlook or have difficulty serving |
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Term
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Definition
-defenders:focus on same product's efficiency to retain customers;have slow market
-prospectors:seek fast growth with new products
-analyzers:blend of defender and prospector seeking moderate growth usually imitate others success of newer products
-reactors:use inconsistent strategy and react to environment changes after they happen |
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Term
| factor not included in five forces but important |
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Definition
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Term
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Definition
| tells us how technology is dispersed. growth occurs throughout at differing rates. mid point is highest rate with beginning and end of curve as slower rates. |
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Term
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Definition
| has potential but hasn't demonstrated it. at the very bottom of s curve |
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Term
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Definition
| demonstrated potential but problems with implementation. at the "a" position on the s curve |
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Term
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Definition
| everybody agrees on certain implementation as correct or best |
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Term
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Definition
| maintained and still implemented but something better is on horizon |
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Term
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Definition
| maintained bu not longer implemented |
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Term
| technological substitution |
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Definition
| occurs when customers purchase new technologies to replace older technologies. what happened with hd dvd and blu ray causing a discontinuous change which is a combination of tech subs and design competition between hd dvd and bluray. |
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Term
| technological discontinuity |
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Definition
| phase of an innovation stream (patterns of innovation over time that can create s.c.a.) in which a scientific advance or unique combination of existing tech creates a significant breakthrough in performance or function. |
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Term
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Definition
| technological discontinuities->discontinuous change->dominant design |
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Term
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Definition
| in the bluray hddvd situation. bluray would win out and be the dominant design because it became the new accepted market standard for that technology another example is internal combustion engine |
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Term
| organizational innovation |
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Definition
| the successful implementation of creative ideas in organizations |
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Term
| factors leading to creative work environments |
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Definition
| encouragement, challenging work, autonomy (lack of organization impediments), freedom |
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Term
| what are creative environments designed to create |
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Definition
| flow:a state of effortlessness and performance is at highest potential |
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Term
| managing resistance to change |
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Definition
unfreezing:share reasons to change
change intervention:talking about new behaviors
refreezing:reinforce behaviors so they stick |
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Term
| coercion and managing resistance to change |
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Definition
| incurs social cost through organization by creating a negative environment |
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Term
| drucker's 7 sources of innovation |
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Definition
process need:necessity is mother of invention
changes in perception
demographics:like baby boomers getting older
incongruity:what is vs. what is expected
changes in industry
unexpected:success or failure
new knowledge |
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Term
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Definition
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Term
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Definition
| tax on something like 10 % tax on steel exports |
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Term
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Definition
subsidies
quotas
voluntary export restraint
import standard |
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Term
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Definition
| government gives beneficial credit |
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Term
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Definition
| only so many lbs or the like can be exported |
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Term
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Definition
| a standard ostensibly established to protect the health and safety of citizens but, in reality, often used to restrict imports |
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Term
| voluntary export restraints |
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Definition
| voluntarily imposed limits on the number or volume of products exported to a particular country and is used as a first step towards quotas |
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