Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
23 Cards in this Set
- Front
- Back
External Environment |
Hypercompetition |
|
Hypercompetition |
is affected by facotrs such as Technology and Technological changes and the Global Economy |
|
Technology and Technological Changes |
rapid diffusion -> short PLC; dramatic changes in Info Tech; increasing importance of knowledge |
|
Global Economy |
*people, goods, services &ideas move freely acrossgeographic borders* significant opportunitiesemerge in multiple globalmarkets* markets/industries becomemore internationalized |
|
GATT |
General Agreements on Tariffs and Trade (reducing barriers) |
|
Technology |
causes rapid dissemination of info, rapid technology changes |
|
rapid tech changes leads to |
product obsolescence |
|
product obsolescence leads to |
short Product Life Cycle |
|
cycles of a product |
introduction, growth, maturity, and decline |
|
Short PLC means |
less time to sell your product bec. of many volumes to produce |
|
Break-even point |
Total fixed cost / (unit selling price - unit variable cost) |
|
Hypercompetition also leads to |
High Bargaining power of buyers |
|
high BP since |
a lot of enterprise are selling the same thing so you can choose easily |
|
Indirect competitors |
substitutes (boats to airplane) and it sets the ceiling price |
|
The 5 forces that shape the industry or competition |
threats of new entrants, bargaining power of buyers, bargaining power of suppliers, threats of substitutes all lead to high rivalry among existing competition |
|
Purchasing power |
amount of goods/services that one unit of money can buy; all else being equal, inflation decreases the amount of goods and services we are able to purchase |
|
Michael Porter |
Creator of the Generic Strategies |
|
Cost Leadership |
if you incur the lowest cost and price the lowest then an entity is the cost leadership |
|
Differentiation |
if a company gives high value, high benefit, and low price |
|
Focus/Niche |
focus on a segment (makes you lower your volume) and allows you to meet your BEV |
|
Management science |
makes application of scientific approach; uses mathematically oriented techniques to solve management problems |
|
Focus of Management Science in the Scientific Approach |
Model Construction and Solution |
|
Example of Model Contruction |
minimize Z (cost) = 20x1 + 15x2 Where 20 is the price and x are the products |