Bus Policy exam 1
EFE
1. generate macro environemental factors 2. generate five forces factors 3. seperate into opportunites and threats 4. assign weight for each factor 5. assign a rating for each facotr 6. determine the weighted scores and the total weighted score
threat
an element in the environment that can hurt or weaken a business, product or project
age structurem geographic distribution, income dstribution, interest rates and process inoovation are all elements of conern when studying the demographic segement of the general environement
false
firms can directly control the elements of the seven segments of the general environment
false
supplier power tends to be highest in industries where products are vital to buyers, where switching costs from one supplier to another is very costly and where there are many suppliers
false
supplier power tends to be highest in industries where products are vital to buyers, where switching from one supplier to another is very costly, and where there are many suppliers.
false
the porter five forces model framework is a tool that is used to determine why some firms consistently out perfomr other firms in the same industry
false
all of the following are forces that create high rivalry within an industry exceot
fast industry growth
porter five forces
five forces are environemntal forces that impact a company's ability to compete in a given market the purpose is to diagnose the principle competitive pressures in a market and assess how strong and important each one is
mission is
how we adress our markets
smart objectives
specific measurable attainable relevant timebound
rivalry competitors increases when
there are numerous or equally balanced competitors industry growth slows or declines high fixed costs lack of differentation opportunities or low switching sots high exit barriers
buyers are powerful when:
they have a choice
suppliers are powerful when
they offer a credible threat of forward integration
srategic management consists of the analysis, decisions, and actions an organization undertakes in order to create and sustain competitve advantages
true
the firms mission is more concrete than its vision
true
the power of buyers will be enhanced if they are able to maintain a credible threat of backward integration
true
who creates the value on a social network
users
strategy is
ways to achieve our objectives
old view of indsutry
we are only concered about the players in the industry
vision is
where are we going
a good mission
who - market what - product how - technology why - reasoning
opportunity
an elemenet in the environment that a business can exploit to its advantage emerging customer needs customer's perceptions of quality expanding global markets changes in technology
industry
a group of firms that make similar products or services
psychographics
a qualitative methodology used to describe traits of human on psychological attributes personality, values, opinion, attitudes, interests, beliefs, and lifestyle
Externa factor evaluation EFE
a strategy tool that is used to evaluation the firm's external environment and identify the available opportunities and threats this allows us to take what we have identified from the PEST and the porter 5 force model analysis and lets us compare and rank them our goal with the efe is to identify the major opportunities and threats facing the firm
weakness
absence of resources and capabilities that can be used as a basis for developing a competitve advantage
barriers to enter the concentrate production business of coke and pepsi include
access to distribution channels brand loyalty proprietary know-how such as secret reciple for making concentrate
goal
an achievable outcome that is broad and long term
mission statement and vision statement
are not the same as mission and vision they are evidence of the mission and vision
ultimately we want to determine if the industry is
attractive meaning profitable and growing or unattractive meaning not profitable
in the pc industry, microprocessor supplier such as intel and AMD have significant bargaining power over copmuter manufacturing companies such as dell and hp because
both a andb critical and major producers
objectives is
brekas our mission into measurable parts
economic
broaud economic indicators lead- before - stock market lagging - index/number after - housing market
threat of substitute products increase when
buyer face few switching costs the subsitutes quality and performance is relatively the same
power of buyers increases when
buyers are large and few in number buyers purhcase a large portion of industry output switching costs are low pose threat to integrate backwards buyer has full information
which of the followinf industries is likely to be most profitable
high entry barries and little comptetition
smart objectives continued
clear communication and alignment clarity towards project success clear roadmap and finish line trackable metrics
applications developed for iphones make the phone more valuable to iphone users. app developers are ___ to apple
complementors
artifical intelligence
computers doing things that use human intelligance computer science uses large data sets to identify patterns, make predictions and recommend actions explosions of AI enhance products recently
objective
defines measurable actions in the short term to acheive the overall goal
sociocultural
demogrpahics and psychographics
vision characteristics
developed through sharing across an organization methods of convincing the others about vision change agents
the bargaining power of suppliers is enhanced under the following market conditions
dominance by a few suppliers
high entry barriers can be attributed to
economies of scale and control of key resources high cusotmer switching costs and brand loyalty both of them
new entrants barrier to entry
econonmics of scale products highly differentiable captial requirements high switching costs access to distribution channels cost advantage independent of scale expected retaliation
mission defiinition
essential purpose of the organization, concerning particulary why it is in existence, the nature of the business it is in, and the customers it seels to serve and satisfy
exit barriers to a firm include all of the following except
generic assets
theory says that __ industries have a __ concentration ratio and therefore have a ___ inensity of rivalry
gragmented, low, high
strategic group
group companoes within an industry that have similar business models or simialr strategies
attractive industry high profitability
high entry barriers suppliers and buyers have weak positions low threat from subsitutes limited rivalry
an analysis of the economic segment of the external environment would include all of the following except
income distribution
customer loyalty programs such as airline frequent flyer miles are an attempt to
increase customers' switching costs
economics of scales refers to the fact that as quantity of product prodcued in a given time period___, the cost of manufacturing each unit ___
increases, decreases
new view of industry
indsutries are part of a dynamic ecosystem that has a lot of stakeholders that must be considered new entrants power of buyers power of suppliers substitutes rivarly competitors
after amazon lowered the price on its tablets, Samsung eventually lowered the price on its tablets. samsung need to do this because:
it is in the same strategic group
if economics of scale are an industrys primary entry barrier, a new entrants major risk is
its inability to produce in sufficient volume to match the cost advantages of established producers
unattractive industry low profitability
low entry barriers suppliers and buyers have strong positions strong threat from substitutes intense rivalry
according to the five force model, an unattractive industry would include all of the following characteristics except
low supplier power due to commodity inputs
external evironment
macro environment
which of the following tools is the most useful in identifying a firms industry environment
porters five forces model
vision definition
mental perception of the kind of environment an individual, or an organization, aspires to create within a broad time horizon and the underlying conditions for the actualization of this perception strategic intent should lead to an end succeeding on your mission leads to achieving your vision
question 33
netflic and microsoft
a general environmental analysis can be expected to produce all of the following except
objective answers
if rivalry and buyer power on the online dating industry are going to increase in the future, which of the following statements is the most accurate?
online dating will be less attractive to potential users
strength
resources and capabilities that can be used as a basis for developing a competitve advantage patents strong brand names cost advantages from proprietary know - how access to distribution networks
consider the video game indsutry. sony makes the playstation 2 video game system. sega used to make the competing dreamcast video game system. at the same time, sega made games that people could buy to play on the playstation 2. this measnt aht sony and sega were
rivals and complements
pest analysis
scan - identify early signals of changes and trends monitor - detecting through observations of changes/trends forecast - developing projections of outcomes based above assess - determining the timing and importance of the monitored changes and trends
single most important feaure - the feed launched 2/4/2004 new feeds allows users to constantly benefit from a surge of activity in their network facebook is losing subscriers apple changing its privacy policy mixed reaction to facebook going meta
an analysis of society's attitudes and values would be conducted when studying the ___segment of the general environemtn
sociocultural
coca cola and pesi have been accused of contributiong to the obsesity problem in the united states. this accusation comes from the ___ segment of the general environment
sociocultural
macro environment
sociocultural economic demographic political/legal technologival global physical indutry competitor
swot
strengths (internal) weakness (internal) opportunities (external) threats (external)
in applyin the porter five forces model to the streaming industry, broadcast networks would be considered as
substitutes
media content has moved from paper, tape, and film to a digital world based on internet technology. from the perspective of the five forces model, which of the following forces is most relevant here?
substitutions
power of supplies increases when
suppliers are few and large in number suitable substitutes are not available not a large number of individual buyers suppliers goods are critical high switching costs suppliers can threaten to integrate forward
buyers are powerful when
switching costs are low
in 2015 the acquisition of comcast - time warner for $45 billion was rejected by the federak commission. which statement best describes the situation
the acquistion deal would decrease the industry compeittion because the number of major competitiors in the industry will reduce
a certain marble quarry provides a sunique type of marble that is richly colors and strinkly veined. it has been used for churches and public buildings throught the world. the architect of a new headquarters for a prestigious fortune 500 firm has specified the sue of this marble and this marble only for the project. which of the following statements is most likely to be true?
the cost of the marble will b e expensive because of the bargaiing power of the supplier.
demographics
the statistical study of populations encompasses the study of the sixe, structurem and distribution of these populations and spatial or temporal changes in them in response to birth, migration, aging, and death quantifiable characteristics of a given population analysis can cover education, nationality, religion, and ethnicity
the threat from substitutes is high when
the substitute products price is lower than the industry product's price
technological
the sum of techniques, skills, methods, and processes used in the production of goods and services or in the accompishment of objectives can be knowledge of techniques, processesm and the like or it can be machines to allow for operation without detialed knowledge of the workings input- throughput - output
trend analysis
the widespread practice of collecting information and attmpting to spot a pattern
