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42 Cards in this Set
- Front
- Back
strategy is the managers |
game plan |
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a firms strategy specifies |
how the firm intends to achieve its goals |
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first step to create competitive advantage through a strategy is to |
generate better information than their rivals |
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second step to create competitive advantage through a strategy is to |
analyze the information to make strong, informed decisions |
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third step to create competitive advantage through a strategy is to |
quickly select among choices |
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fourth step to create competitive advantage through a strategy is to |
converting strategic choices into a decisive action |
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according to military leaders, tactics differ from strategy in that |
tactics represented the specific moves their armies would perform on the battlefield |
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according to military leaders, tactics differ from strategy in that |
strategy represented the grand plan for the war and it was usually aimed at creating a military advantage |
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question that is most important to the development of a firm's strategy |
"What is the purpose of the business?" |
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according to milton friedman, the primary goal of a business is to |
make profits |
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core competencies |
network of unique activities that strategically fit together and are difficult to replicate |
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vision of an organization |
concept or picture of what a firm wants to achieve and how it plans to accomplish that |
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"it defines the purpose of the company" is a benefit from |
an effective mission statement |
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strategy formulation |
process of identifying how a firm can best align its resources to carve out a defensible position in the marketplace |
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an emergent component of a firm's strategy |
makes it flexible and adaptable to changing environmental conditions |
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the planned component of strategy development involves |
the systematic assessment of the external and internal environments, the creation of plans to react or impact environmental factors, and the establishment of objectives or benchmarks the firm hopes to achieve |
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the constantly changing nature of the external environment requires managers to |
engage in environmental scanning on an ongoing basis to determine its impact if any, on the firm
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in the formulation of strategy, managers must create a solid fit among the activities to |
offer a service that cannot be easily copied by competitors |
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Foodies, a food manufacturing company, made plans to either open a new outlet in Berylia, a country where the majority are low-income families, or Erbia, a country where the majority of the people belong to high-income families. They finally decide to open a new outlet in Berylia, by offering products with reduced cost as the demand for their product is greater in Berylia. This scenario is an example of _____ in defining a strategy. |
making trade offs |
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Z-coffiz charges much higher prices for a cup of coffee than its competitors. Z-coffiz is able to do this because it positions itself to be selling an experience, rather than merely a cup of coffee. Which aspect of a firm's strategy does this describe? |
differentiation |
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when a manager determines whether a firm's strategy leverages its key resources, which criteria for evaluating the quality of a firm's strategy is the manager assessing? |
internal fit |
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corporate level strategy |
the way a company seeks to create value through the configuration and coordination of multimarket activities |
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business level strategy |
the determination of how a company will compete in a given business and position itself among its competitors |
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TechPark, a manufacturing company, was in the process of formulating a strategy in an attempt to improve the firm’s competitive advantage. The management began by evaluating the resources available within the organization to better understand how the firm should compete. Eventually they decided to offer their products at a lower cost compared to that of their competitors. Identify the strategy used by the management of TechPark. |
business level strategy |
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a global strategy focuses on |
developing overall scale economies and global efficiency instead of catering to local tastes |
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a transnational strategy focuses on |
efficiency, local responsiveness, and organizational learning |
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firms use multinational strategies when |
it is important to be responsive and sensitive to local needs and tastes |
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which strategy approach usually involves significant customization of a firm's products |
multinational |
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in setting business level strategy, a manager evaluates |
the attractiveness of the industry structure and the firm's resources to determine how the firm should compete |
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a global strategy attempts to |
provide a standardized product to all markets |
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international strategies |
strategies that combine elements of multinational and global strategies by using foreign subsidiaries to produce and distribute products |
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transnational strategy focuses on |
efficiency, local responsiveness, and organizational learning |
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Z-Technologies, a manufacturing company in Berylia, is a global organization. The company owns a manufacturing unit in Erbia and another one in Rhodia, where the demand for its products is more. Though it is an expensive and risky proposition, the parent company has full control of the manufacturing units in the foreign countries. Which of the following market entry strategies has been used by Z-Technologies? |
wholly-owned subsidiaries |
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a firm can enter a foreign market through a |
wholly-owned subsidiary |
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wholly owned subsidiary |
firm sets up a fully operational, independent entity in a foreign country to conduct business in that market |
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licensing and franchising is a (blank) means of entry |
low cost |
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licensing most often occurs between |
manufacturing firms |
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franchising is used by |
service firms such as hotels and fast food chains |
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objectives provide a |
series of quantifiable milestones or benchmarks by which a firm can assess its progress |
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as a manager develops a strategy, he/she must realize that competitive strategy is primarily about |
being different |
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as a manager develops a strategy, he/she must realize that competitive strategy is NOT about
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operational efficiency |
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the manager must make (blank) in the formulation of strategy |
trade offs |