mgt ch 7-10 quiz

Briefly describe Michael Porter's Five-Forces Model of industry competition. Why is it important to pay attention to these five forces of competition?

Supply Chain Competition: Buyers, Suppliers Industry Competition: Rivals, New Entrants, Substitutes and Alternatives Important for the firm to be aware of all places competition can come from to stay relevant and have competitive edge

What does the total product mean? How does this approach help a small business owner?

Total product: The entire bundle of products, services, and meanings of your offering; includes extras like service, warranty, or delivery, as well as what the product means to the customer; core+augmented Helps by meaning more to the consumer than just the core component, get inside your customers' heads and figure out the most cost-effective "bundle" of value and cost benefits, and knowing what your product "means" to consumers will help you set an appropriate price

Mission Statement

a statement of the organization's purpose - what it wants to accomplish in the larger environment (paragraph)

Vision Statement

expresses what the organization should become, where it wants to go strategically (5-10 words)

Name and briefly describe the different types of generic strategies (cost, focus, differentiation)

Differentiation strategy: A type of generic strategy aimed at clarifying how one product is unlike another in a mass market Cost: A generic strategy aimed at mass markets in which a firm offers a combination of cost benefits that appeals to the customer Focus: A generic strategy that targets a portion of the market, called a segment or niche . A small firm (especially service firms) often focuses on a specific geographic area and competes within this area on cost or differentiation.

Segmentation

the process of dividing a larger market into smaller pieces based on one or more meaningfully shared characteristics demographics: segmentation by age, race, gender, sexuality etc psychographics: psychological, sociological, and anthropological factors to construct market segments geographics: where people live