MGT401 Exam Review
oligopoly
- few (large) firms - some pricing power - differentiated product - high entry barriers
perfect competition
- many small firms - firms are price takers - commodity product - low entry barriers - low profit potential
Monopoly
- one firm - considerable pricing power - unique product - very high entry barriers - high profit potential
different levels of strategy
- strategic planning - scenario planning - strategy as planned emergence
the building owned by Amelia, which reduces cost of operations
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 an in equipping the kitchen with the appliances that are most widely used in her industry. in this scenario, which of the following is the most valuable resource for Amelias business.
entering the aircraft manufacturing industry requires huge capital investments
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
provide products similar to its competitors, but at lower prices
Q: A firm is said to gain a competitive advantage when it can:
Competitive advantage
a firm that achieves superior performance relative to other competitors in the same industry or the industry average - to do some a firm needs to provide either goods or services consumers value more highly than those of its competitors, or goods or services similar to competitors at lower cost
fir between its internal strengths and the external environment is static
a firm will fail to create a sustained competitive advantage when the:
strategic position
a firm's _________ relates to its ability to create value for customers while containing the cost to do so
easy to imitate
according to an evaluation using the VRIO framework, crocs shoes was unable to sustain its competitive advantage primarily because its products were:
core competencies
allow a firm to differentiate it products and services from those of its rivals, creating higher value for the customer or offering products and services of comparable value at lower cost
resource heterogeneity
although shook inc. and fury inc. operate in the same consumer electronic industry, ehook inc. has better sales and brand equity. this is attributed toe hook inc's commitments to innovation. the company has adequate financial and human capital to invest in research and development, an area in which efury inc. lags behind. in this scenario, which of the following critical assumptions of the resource-based view of a firm has been illustrated
fragmented industry
consists of many small firms and tends to generate low profitability
external stakeholder
contour inc., a vendor, regularly supplies capacitors to all purpose electronics for use in its products. therefore, contour inc. is all purpose electronics
economies of scale
cost advantages that accuse to firms with larger output because they can spread fixed costs over more units, employ technology more efficiently, benefit from a more specialized division of labor, and demand better terms from their suppliers
economies of scope
describe the savings that come from producing two (or more) outputs at less cost than producing each output individually, even though using the same resources and technology
emergent strategy
describes any unplanned strategic initiative bubbling up from deep within the organization - if successful, have the potential to influence and shape a firm's overall strategy
path dependence
describes the process in which the options one faces in a current situation are limited by decisions made in the past - often early events sometimes even random ones have a significant effect on final outcomes
consolidated industry
dominated by a few firms, or even just one firm, and has the potential to be highly profitable
more competitive rivalry than firms outside their strategic group
firms that compete within the same strategic group generally experience:
core competency
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:
realized strategy
generally formulated through a combination of its top-down strategic intentions and bottom-up emergent strategy
core rigidities
if a firm relies too long on the competency without honing, refining, and upgrading as the environment changes
external stakeholder
include customers, suppliers, alliance partners, creditors, unions, communities, media, and government at various levels
unrealized strategy
intended strategy is likely to fall by the wayside because of unpredictable events and turn into what? - unpredictable events
relative
is competitive advantage always absolute or relative
resource
is valuable if it helps a firm increase the perceived value of its product or service in the eyes of consumers, either by adding attractive features or by lowering price because the resource helps the firm lower its costs
operations
primary activities in the value chain analysis
operations
production plants are a part of a firm's what?
strategic position
require that firms stake out a unique position in an industry- it requires trade-offs that should increase the value of their products/services while still maintain an effective cost structure
pursue a differentiated strategy
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 of these strategies should ride n style pursue instead?
competitive parity
should two or more firms perform at the same level
intended strategy
the outcome of a rational and structured, top-down strategic plan - likely to fall by the wayside because of unpredictable events and turn into unrealized strategy
what is SBU
the standalone divisions of a larger conglomerate, each with its own profit-and-loss responsibility
primary activity
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
a vision states what a firm wants to accomplish; a mission states how a firm plans to accomplish this vision
which of the following summarizes the difference between a firm's vision and mission