MGT-102 Principles of Management Chapters 5-
Individualism
________ is the degree to which societies believe that individuals should be self-sufficient.
Bargaining power of suppliers
________ is a measure of the influence that suppliers of parts, materials, and services to a firms in an industry have on the prices of these inputs.
character of rivalry
________ is a measure of the intensity of competitive behavior among companies in an industry.
direct foreign investment
________ is a method of investment in which a company builds a new business or buys an existing business in a foreign country.
BCG matrix
________ is a portfolio strategy managers use to categorize their corporation's business by growth rate and relative market share, helping them decide how to invest corporate funds.
Control
________ is an active strategy to prevent or reduce political risks.
Unrelated diversification
________ is creating or acquiring companies in completely unrelated businesses.
Exporting
________ is defined as selling domestically produced products to customers in foreign countries.
market commonality
________ is degree to which two companies have overlapping products, services, or customers in multiple markets.
Global business
________ is the buying and selling of goods and services by people from different countries. Voluntary export restraints
resource similarity
________ is the extent to which a competitor has similar amounts and kinds of resources, that is, similar assets, capabilities, processes, information, and knowledge used to create and sustain an advantage over competitors.
Power distance
________ is the extent to which people in a country accept that authority is distributed unequally in society and organization.
Purchasing Power
________ is the relative cost of a standard set of goods and services in different countries.
political uncertainty
________ is the risk of major changes in regimes that can result from war, revolution, death of political leaders, social unrest, or other influential events.
Direct Competition Definition
________ is the rivalry between two companies offering similar products and services that acknowledge each other as rivals and take offensive and defensive positions as they act and react to each other's strategic actions.
adaptability screening
________ is used to assess how well managers and their families are likely to adjust to foreign cultures.
Global consistency
________ means that a multinational company has offices, manufacturing plants, and distribution facilities in different countries and runs them all using the same rules, guidelines, policies, and procedures.
National culture
________ the set of shared values and beliefs that affect the perceptions, decisions, and behavior of the people from a particular country.
documentary training
________ training focuses on identifying specific, critical differences between cultures.
Field simulation
________ training places trainees in an ethnic neighborhood for three to four hours to talk to residents about cultural differences.
discontinuous change
_________ is characterized by technological substitution and design competition
Uncertainty avoidance
The cultural difference of ________ is the degree to which people in a country are uncomfortable with unstructured, ambiguous, unpredictable situations.
Refreezing
Which of these is supporting and reinforcing the new changes so that they stick?
Change forces
Which of these lead to differences in the form, quality, or condition of an organization over time?
unrelated diversification
____ is the most difficult kind of diversification to make successful in the long run.
Resources
________ are the assets, capabilities, processes, employee time, information, and knowledge that an organization controls.
Core Firms
________ firms are the central companies in a strategic group.
Franchise
A(n) ________ is a collection of networked firms in which the manufacturer or marketer of a product or service licenses the entire business to another person or organization.
Porter's five industry forces and how do they affect a company's strategy?
1 Character of the rivalry: a measure of the intensity of competitive behavior between companies in an industry. 2 Threat of new entrants: a measure of the degree to which barriers to entry make it easy or difficult for new companies to get started in an industry. 3 Threat of substitute products or services: a measure of the ease with which customers can find substitutes for an industry's products or services. 4 Bargaining power of suppliers: a measure of the influence that suppliers of parts, materials, and services to firms in an industry have on the prices of these inputs. 5 Bargaining power of buyers: a measure of the influence that customers have on a firm's prices.
Two factors that determine the extent to which firms will be in direct competition:
1. market commonality: the degree to which two companies have overlapping products, services, or customers in multiple markets 2. resource similarity: the extent to which a competitor has similar amounts and kinds of resources; similar assets, capabilities, processes, information, and knowledge used to create and sustain an advantage over competitors
Cooperative Contracts
A(n) ________ is an agreement in which a foreign business owner pays a company a fee for the right to conduct that business in his or her country.
Expatriate
A(n) ________ is someone who lives and works outside his or her native country.
strategic group
AT&T may benchmark itself against other companies in its ______ (such as Verizon, Sprint, Nextel, and T-Mobile) to identify strategic threats and opportunities.
recovery
After Saab, the Scandinavian automobile maker, declared bankruptcy, its strategy was developed by a Chinese entrepreneur who planned to manufacture electric cars for sale in China.
firm-level strategy
American Airlines was developing a when it asked, "How can we compete against Southwest Airlines?"
discontinuous change
During ________, companies must find a way to anticipate and survive the technological changes that can suddenly transform industry leaders into losers and industry unknowns into powerhouses.
Industry-level strategy
Nucor's was developed when the steel manufacturer asked, "How can we compete against other steel makers?"
rare resource
One of the four components of a sustainable competitive advantage, the _______________is something that a company has that is not widely available to other companies.
acquisition
The U.S. heavy-equipment company Caterpillar made an offer to buy ERA, a Chinese mining company, using to minimize overall risk.
Threat of substitute products or services
The ________ is a measure of the ease with which customers can find substitutes for an industry's products or services.
workforce quality and company strategy
Two key qualitative factors for choosing an office or manufacturing location include:
related diversification
United Airlines engaged in ______ when it acquired Continental Airlines
related diversification
When a company purchases another business that does something similar to what the purchasing company does, the purchasing company is using a strategy of .
Global New Ventures (Global Start Ups)
________ are companies that are founded with an active global strategy and have sales, employees, and financing in different countries.
Multinational corporations
A ________ is a corporation that owns businesses in two or more countries.
differentiation
Apple customers pay premium prices for new iPhones and iPads, reflecting the company's strategy.
question mark
BlackBerry's tablet would receive a ______ designation from the Boston Consulting Group because it has a small share of a fast-growing market.
building creative work environments
Companies can jump-start innovation by _________.
analyzers
Companies that use the adaptive strategy imitate products and ideas that have proved successful for other companies.
Not systematically planning for and creating short-term wins Lacking vision under communicating the vision by a factor of 10
Mistakes made by managers in the change phase:
retrenchment strategy
National Semiconductor exhibited a ______ when it went through multiple rounds of yearly layoffs.
innovation
Organizational ________ is the successful implementation of creative ideas in an organization.
change
Organizational _________ is a difference in the form, quality, or condition of an organization over time.
competitive advantage
Organizations can achieve a ________ by using their resources to provide greater value for customers than competitors can.
Diversification
Owning stocks in a variety of companies in different industries is known as:
related diversification
Pretend that you own a small coffee shop. You have decided that this year is a good time to grow your business, and you have chosen to do so by acquiring another coffee shop one town over. This is an example of .
Strength Weakness Opportunities Threats
SWOT
strengths, weaknesses, opportunities, and threats.
SWOT stands for all of the following:
threat of new entrants
The is much greater for the online retail industry than it is for the oil production industry.
attack?
The strategy involves taking actions that will steal a competitor's clients.
valuable
To provide a sustainable competitive advantage, the firm's resources must be ________, i.e., capable of improving efficiency and effectiveness.
strategic dissonance
________ is a discrepancy between a company's intended strategy and the strategic actions managers take when actually implementing that strategy.
Bargaining Power of Buyers
________ is a measure of the influence that customers have on the firm's prices.
flow
Which term describes a psychological state of effortlessness, in which you become completely absorbed in what you're doing and time seems to fly?
Resistance forces
_____ support(s) the status quo.
Local adaptation
_______ is the modifying rules, guidelines, policies, and procedures to adjust to differences in foreign customers, governments, and regulatory agencies.
Non-tariff Barriers
________ are nontax methods of increasing the cost or reducing the volume of imported goods.
Core Capabilities
________ are the less visible, internal, decision-making routines, problem-solving processes, and organizational cultures that determine how efficiently inputs can be turned into outputs.
Sustainable competitive advantage
A ________ is when other companies cannot duplicate the value a firm is providing to customers.
strategic dissonance
A company that emphasizes customer service in its mission statement but pays employees on the basis of how many customers they can process in an hour has a problem with ______________ .
core capabilities
A company's _______ are defined by the internal processes of the organization, including how the company makes decisions and solves problems.
Attack
A(n) ________ is a competitive move designed to reduce a rival's market share or profits.
Technology
________ consists of the knowledge, tools, and techniques used to transform inputs (raw materials and information) into outputs (products and services).
Portfolio Strategy
________ is a corporate-level strategy that minimizes risk by diversifying investment among various businesses or product lines.
related diversification
Verizon develops and deploys low-altitude telecommunications systems. This is an example of
sustainable competitive advantage .
When a company's resources are valuable, rare, imperfectly imitable, and nonsubstitutable, it has a
Company strengths and weaknesses
When conducting a SWOT analysis, budgets, ratios, and sales reports can be used to identify:
creativity
When we say that innovation begins with great ideas, we're really saying that innovation begins with ________.
managers are often incorrect in categorizing companies as cash cows, dogs, stars, and question marks & classifying an organization as a cash cow can weaken a strong performer
Which of the following are drawbacks to using a portfolio strategy such as the Boston Consulting Group matrix?
