MGMT FINAL

3. Texas Instruments, a giant electronic products producer, synthesizes it abilities in miniaturization, microprocessor design, material science, and ultrathin precision castings to produce digital watches. It uses the same skills to produce card calculators, digital cameras, and other small electronics. These collective skills are known as a. core competencies b. strategic resources c. shared activities d. economies of scope

a. core competencies

4. If Hyundai Motors buys Kia Motors, which of the following would an advantage of this diversification? a. pooled negotiation power b. corporate restructuring and parenting c. portfolio management d. none of the above

a. pooled negotiation power

effective

achieving maximum productivity with minimum wasted effort or expense

transnational strategy

allowing brands and companies to expand their global footprint in the selling of their goods and services, while taking into account cultural and societal differences that shape consumers in their native environment

9. Toyota might supply its own parts or make its own engines to secure sources of supply. This is an example of a. horizontal merger b. vertical integration c. conglomerate consolidation d. none of the above

b. vertical integration

1. If Applebee's decides to diversify, it has all the following options except a. mergers and acquisitions. b. strategic alliances. c. shareholder development. d. joint ventures.

c. shareholder development

leader's bases of power

organizational personal

2. Unilever is a large multinational organization that has many business sharing distribution resources. Diversification strategies take advantage of the __________ that exist in their organization. a. costs b. employees c. synergies d. discontinuities

c. synergies

management restructuring

changes in the composition of the top management team, organizational structure, and reporting relationships

capital restructuring

changing the debt equity mix

ingredients of entrepreneurial success

competition caution action oriented/persistent and consistent innovative/creative/imaginative likeable/popular/luck

boundaries (essential elements of behavioral control)

control improper and unethical conduct strategic priorities short term objectives improving effectiveness and efficiency

asset restructuring

sale of unproductive assets, or even whole lines of business, that are peripheral

five components of emotional intelligence at work

self regulation empathy self awareness social skill motivation

corporate governance

shareholders management board of directors

Demand Conditions

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

related and supporting industries

the presence or absence of supplier industries and related industries that are internationally competitive

related diversification

enables a firm to benefit from horizontal relationships across different businesses by leveraging core competencies and sharing activities.

Personal Power

expert power, referent power

optimal organizational design

fits the organizational strategy form should follow function

culture (essential elements of behavioral control)

google, apple, fedex, amazon, lexus

contemporary approach to strategic control

informational control -> behavioral control

Organizational power

legitimate power, reward power, coercive power, information power

3M leverages its competencies in adhesives technology to many industries, including automotive, construction, and telecommunications

leveraging core competencies (economies of scope)

multidomestic strategy

marketing that people of all spectrums can understand care about customers and change your product accordingly

traditional approach to strategic control

--> formulate strategies --> implement strategies --> strategic control --

Benefits of Vertical Integration

-A secure source of raw materials or distribution channels -Protection of and control over valuable assets -Access to new business opportunities -Simplified procurement and administrative procedures

Risks of Vertical Integration

-Costs and expenses associated with increased overhead and capital expenditures. -Loss of flexibility resulting from large investments. -Problems associated with unbalanced capacities along the value chain. -Additional administrative costs associated with managing a more complex set of activities.

Entrepreneurial resources

1) Human Capital 2) Social Capital 3) Government Resources 4) Financial

Four Qualities of a viable opportunity

1. Attractive 2. Durable 3. Achievable 4. Value Creating

For a core competency to create value and provide a viable basis for synergy among the businesses in a corporation, it must...

1. Enhance competitive advantage by creating superior customer value. 2. Different businesses in the corporation must be similar in at least one important way related to the core competence. 3. The core competencies must be difficult for competitors to imitate.

Factors affecting a nations competitiveness

1. Factor endowments 2. Demand conditions 3. Related and supporting industries 4. Firm strategy, structure, and rivalry

Entry Modes of International Expansion

1. exporting 2. licensing 3. franchising 4. strategic alliance 5. joint venture 6. wholly owned subsidiary

Factor Endowments

A country's endowment with resources such as land, labor, and capital.

pooled negotiating power

A result of related diversification, similar businesses working together or the affiliation of a business with a strong parent can strengthen an organizations bargaining position relative to suppliers and customers.

Essential elements of behavioral control

Boundaries, culture, rewards.

Example of core competencies

Casio, a giant electronic product producer, synthesizes its abilities in miniaturization, microprocessor design, material science, and ultra thin precision casting to produce watches. Same skills it applies to calculators and cameras.

unrelated diversification

Few benefits from horizontal relationships, benefits are gained from vertical relationships.

Vertical Integration

Occurs when a firm becomes its own supplier or distributor.

Economies of scope (related diversification)

Refers to cost savings from leveraging core competencies or sharing related activities among businesses in the corporation.

core competencies

Reflect the collective learning in organizations - how to coordinate diverse production skills, integrate multiple streams of technologies, and market diverse products and service.

The interdependent leadership activities

Setting a direction, designing the organization, and nurturing a culture dedicated to excellence and ethical behavior.

corporate of Cooper Industries adds value to its acquired businesses by performing such activities as auditing their manufacturing operations, improving their accounting activities, and centralizing union negotiations

corporate restructuring and parenting (parenting, restructuring, and financial synergies)

5. If Geico Insurance Company buys See's Candy Company, which of the following would be an advantage of this diversification? a. leveraging core competencies b. portfolio management c. vertical integration d. none of the above

d. none of the above

7. As a unit of Proctor and Gamble, Crest brand enjoys significant clout with suppliers and customers since it is part of a firm that makes large purchases from suppliers and provides a wide variety of products. This is called: a. production power b. supplier power c. customer power d. none of the above

d. none of the above

global strategy

plans an organization has developed to target growth beyond its borders increase the sales of goods or services abroad

ConAgra, a diversified food producer, increases its power over suppliers by centrally purchasing huge quantities of packaging materials for all of its food divisions

pooled negotiating power (market power)

Novartis, formerly Ciba-Gelgy, uses portfolio management to improve many key activities, including resource allocation and reward and evaluation systems

portfolio management (parenting, restructuring, and financial synergies)

sources of opportunities for start-ups

realizing unmet needs aha experience suggestions by friends hobbies work experience

Polaris, a manufacturer of snowmobiles, motorcycles, watercraft, and off-road vehicles shares manufacturing operations across its businesses. it also has a corporate r&d facility and staff departments that support all of Polaris' operating divisions

sharing activities (economies of scope)

value creation in different contexts

start up family owned corporations nonprofit established

Firm strategy, structure, and rivalry

the conditions governing how companies are created, organized, and managed, and the nature of domestic rivalry

Shaw Industries, a giant carpet manufacturer, increases its control over raw materials by producing much of its own polypropylene fiber, a key input to its manufacturing process

vertical integration (market power)