MGT T1

Core rigidity

A former core competency that turned into a liability because the firm failed to hone, refine, and upgrade the competency as the environment changed

Path dependence

A situation in which the options one faces in the current situation are limited by decisions made in the past

Summarize the difference between a firm's vision and mission

A vision states what a firm wants to accomplish; a mission states how a firm plans to accomplish this vision

Emergent strategy

An unplanned strategic initiative bubbling up from the bottom of the organization

What are the different levels of strategy?

Analysis Formulation Implementation

Realized strategy

Combination of intended and emergent strategy

Fragmented industry

Consists of many small firms and tends to generate low profitability

Frozen Gold is a fast-growing chain of ice cream shops. It has acquired an edge over its competitors through its ability to provide a wide array of unique flavors and a hip atmosphere in stores. This advantage of Frozen Gold best exemplifies a

Core competency

Economies of scale

Decreases in cost per unit as output increases

Consolidated industry

Dominated by a few firms or even just one firm, and has the potential to be highly profitable

According to an evaluation using the VRIO framework, Crocs Shoes was unable to sustain its competitive advantage primarily because its products were

Easy to imitate

In the aircraft manufacturing industry, at least for large commercial jets, Boeing and Airbus are the only competitors. There is not a significant threat of entry because:

Entering the aircraft manufacturing industry requires huge capital investments

Monopoly

Exists when there is only one firm supplying the market

Contour Inc., a vendor, regularly supplies capacitors to All Purpose Electronics for use in its products. Therefore, Contour Inc. is All Purpose Electronics'____?

External stakeholder

A firm will fail to create a sustained competitive advantage when the

Fit between its internal strengths and the external environment is static

Perfect competition

Fragmented industry with many small firms, a commodity product, ease of entry, and little or no ability for each individual firm to raise its prices

Oligopoly

Larger firms in industries with a small number of other large competitors

Firms that compete within the same strategic group generally experience:

More competitive rivalry than firms outside their strategic group

Competitive parity

Performance of two or more firms at the same level

To reduce the amount of time it takes to apply packaging to its finished products, North Star Foods is implementing new equipment at its production plants. By doing this, North Star is addressing a _____ in the value chain analysis

Primary activity

A firm is said to gain a competitive advantage when it can:

Provide products similar to its competitors, but at lower prices

Ride N Style Inc. is a bus line with service to several major cities. It has several competitors that each offer service to one or two cities, and based on its current outlays, it cannot match or beat those competitors on price. Because of long-term contracts and an increase in the cost of gasoline, it is not possible to reduce expenditures at this time. Which strategy should Ride N Styles pursue instead?

Pursue a differentiated strategy

Although eHook Inc. and eFury Inc. operate in the same consumer electronic industry, eHook Inc. has better sales and brand equity. This is attributed to eHook Inc.'s commitment to innovation. The company has adequate financial and human capital to invest in research and development, an area in which eFuryInc. lags behind. In this scenario, which critical assumption of the resource-based view of a firm has been illustrated?

Resource heterogeneity

What is an SBU?

Strategic business unit

A firm's ________ relates to its ability to create value for customers (V) while containing the cost to do so (C)

Strategic position

Unrealized strategy

Strategy not performed

Competitive advantage

Superior performance relative to other competitors in the same industry or the industry average

Amelia has recently started a restaurant in a commercial area that already has many other established restaurants and popular fast-food chains. Amelia owns the building in which her restaurant is located, rather than leasing premises as her competitors do. This factor allows her to offer her products at a more competitive price. Amelia has also invested a huge amount in designing the restaurant's interior and in equipping the kitchen with the appliances that are most widely used in her industry. In this scenario, which is the most valuable resource for Amelia's business?

The building owned by Amelia, which reduces cost of operations

Scope

The combined objectives and requirements needed to complete a project

Intended strategy

The outcome of a rational and structured top down strategic plan