Term
|
Definition
| Week 1 Lecture notes - Strengths, Weakness, Opportunities, Threats, Elephants |
|
|
Term
|
Definition
| Where company meets customer needs in area where competitors cannot - (Collins 1996) |
|
|
Term
|
Definition
| Sustainable Competitive Advantage (SCA) - Superior performance resulting from valuable strategic assets that are distinctive to the firm and protected from competitive imitation. Either through Cost Leadership or Differentiation. - Watch for mobility barriers, market proliferation and flanking when considering competition. (Porter) |
|
|
Term
|
Definition
| Consider inside the firm for resources and assets that lend advantage. This is a sustainable advantage if already owned Operational effectiveness, relationships, Culture, Leadership, Skills Company not a chess piece, can look inside What is difficult to imitate, valuable, scarce (Week 2 Lecture Notes) |
|
|
Term
|
Definition
| Activity that is valuable, plentiful, observable, but crucial to master Valuable, scarce, not difficult to imitate Vital, not a source of competitive advantage Powell 2006 - In strategy theory, SCAs are protected by a wall of costly or impossible asset imitability. This is not the case for xfactors, which are valuable, observable and imitable activities. (Week 2 Lecture Notes) |
|
|
Term
| Value innovation (Blue Ocean Strategy) |
|
Definition
| Relook at how to compete. Create new categories of competition through focusing on customers. See industry opportunities that don't exist yet, competition (customers not competitors), markets (big blocks of customers), capabilities (start from scratch to innovate), products (fill a void not yet filled) (Kim 1997) |
|
|
Term
|
Definition
| Please tell me you already know this. |
|
|
Term
|
Definition
| Barriers to Entry - New Entrants – Threat of new Entry Experience Curve – (BCG 1970) Total costs per unit of producing a good or service decline by 20% to 30% with every doubling of cumulative units produced Capital requirements Economies of scale Absolute cost advantage Product differentiation Access to distribution channels Legal/regulatory barriers Retaliation Buyers – Power relative to buyers Buyers’ price sensitivity Relative Buying Power Substitutes – Threat of Substitutes Buyers’ propensity to substitute Relative price and performance of substitutes Suppliers – Power relative to buyers Suppliers’ price sensitivity Relative Buying Power Competitors – Rivalry Concentration Diversity of competitors Product differentiation Excess capacity and exit barriers Cost conditions (Porter 1979) |
|
|
Term
|
Definition
| Competence enhancing change (radio to TV) vs Competence destroying change - existing skills obsolete (slide rules to calculators). (Clark 1985) |
|
|
Term
|
Definition
| 4 Stages of uncertainty 1. Clear future – decision depends on cost of entering market 2. Alternate Future – decision depends on rival making an acquisition 3. Ranges future – decision depends on success of a new product 4. True ambiguity – cannot identify key factors (Courtney 1997) |
|
|
Term
| Seven guidelines to creating value through acquisition |
|
Definition
Acquire firm with complementary assets/resources
Friendly acquisition
Effective due diligence
Acquirer has financial slack
Merged firm maintains low debt position
Acquirer maintains emphasis on R&D and innovation
Acquirer manages change well
(Week 6 Lecture Notes) |
|
|
Term
|
Definition
| For international expansion: Best owner or domestic firm better? For mergers: Does new unit gain competitive advantage with corp or vice versa (and at level that exceeds added costs of acquiring and managing new unit) (Barnett 2007) |
|
|
Term
|
Definition
| Need to own it to get benefits? (Barnett 2006) |
|
|
Term
|
Definition
| Is market growing? (Zadek 2004) |
|
|
Term
|
Definition
| Cost of entry likely to exceed likely returns? (Porter 2006) |
|
|
Term
| Modes of Entry (International Markets) |
|
Definition
Export – high cost, low control Licensing/franchising – low cost, low risk, little control, low returns Strategic alliance – shared costs, shared resources, shared risks, problems of integration Foreign direct investment Acquisition – access to new market, high cost, high risk Wholly owned sub – complex, costly, high risk, max control, high returns
(Week 7 Lecture Notes) |
|
|
Term
| Stakeholder Influence Capacity |
|
Definition
| Differing stakeholder influence capacity (SIC) – accrues over time as firms engage in good acts, without it CSR doesn’t pay (Barnett 2007) |
|
|
Term
| Star Plot of Industry Structure |
|
Definition
|
|
Term
PESTLE
(Week 4 Lecture Notes) |
|
Definition
|
|
Term
Industry Life Cycle
(Week 4 Lecture Notes) |
|
Definition
|
|
Term
|
Definition
|
|
Term
|
Definition
|
|
Term
Porters Diamond
(International Expansion) |
|
Definition
|
|
