MGMT Capstone Midterm

Card Set Information

MGMT Capstone Midterm
2013-10-16 23:23:42

MGMT 471 Midterm
Show Answers:

  1. Global Mind-Set
    Ability to analyze, understand, and manage an internal organization in ways that are not dependent on assumptions of a single country, culture, or context.
  2. Bundles
    Possess at least some resources and capabilities other firms do not.
  3. Value
    Measured by a products' performance characteristics and by its attributes customers are willing to pay. 

    Bundle and Leverage resources and capabilities

    Source of above-average returns
  4. Uncertainty...
    Conditions affecting managerial decisions
    Regarding characteristics of the general and industry environments, competitors actions, and customer preferences
  5. Complexity...
    Conditions affecting managerial decisions
    Regarding the related causes shaping a firm's environments and perceptions of the environments
  6. Inraorganizational Conflicts...
    Conditions affecting managerial decisions
    Conflict among people making managerial decisions and those affected by them
  7. Conditions affecting managerial decisions
    • Uncertainty
    • Complexity
    • Intraorganizational conflicts
  8. Judgement
    Capability of making successful decisions when no obvious correct model or rule is available or when relevant data is unreliable
  9. Tangible Resources
    Assets that can be observed and quantified

    • Production Equipment
    • Distribution Centers
    • Manufacturing Facilities
  10. Examples of Tangible Resources
    • Financial Resources
    • Organizational Resources
    • Physical Resources
    • Technological Resources
  11. Financial Resources
    • Firm's borrowing Capacity
    • Ability to generate funds
  12. Organizational Resources
    • Firm's formal reporting structure
    • Formal planning, controlling, and coordinating systems
  13. Physical Resources
    • Location of a firm's plant and equipment
    • Access to raw materials
  14. Technological Resources
    Stock of Technology

    • Patents
    • Copyrights
    • Trade secrets
  15. Intangible Resources

    Assets that are roots deeply in the firm's history - difficult for competitors to analyze and imitate

    • Superior source of core competencies
    • More unobservable = greater competitive advantage
  16. Examples of Intangible Resources
    • Human Resources
    • Innovation Resources
    • Reputational Resources
  17. Human Resources
    • Knowledge
    • Trust
    • Organizational routines
  18. Innovation Resources
    • Ideas
    • Scientific Capabilities
    • Capacity to Innovate
  19. Reputational Resources
    • Brand name
    • Reputation w/ customers and suppliers
    • Perception of product quality and reliability
  20. Capabilities
    Based on developing, carrying, and exchanging info and knowledge through firm's human capital
  21. Capabilities could focus on...
    • Marketing
    • Distribution
    • HR
    • Management
  22. Core Competencies
    • Capabilities that serve as a sources of competitive advantage for firms over rivals
    • Activities a firm performs especially well compared w/ competitors
  23. Criteria of Sustainable Competitive Advantage (4)
    • Value Capabilities
    • Rare Capabilities
    • Costly to Imitate Capabilities
    • Non-substitutable Capabilities
  24. Valuable Capabilities
    Help a firm neutralize threats or exploit opportunities
  25. Rare Capabilities
    Not possessed by many others
  26. Costly-to-Imitate Capabilities
    Historical: Unique organizational culture or brand name

    Ambiguous: Causes/use of a competency is unclear

    Social Complexity: Interpersonal relationships, trust, friendship among managers, suppliers, and customers

  27. Non-Substitutable Capabilities
    Do not have strategic equivalents
  28. Value-Chain Analysis
    Allows firm to understand the parts of operation that create value
  29. Primary Activities
    Involved w/ products' physical creation, sale and distribution, and service after sale
  30. 5 Parts of Primary Activities
    • 1. Inbound logistics (warehousing, inventory control)
    • 2. Operations
    • 3. Marketing/Sales
    • 4. Service
    • 5. Outbound Logistics (collecting, storing, distributing)
  31. Outbound Logistics
    • Dealing w/ Final Product: Collecting, Storing, and Distributing
    • Finished Goods Warehousing
  32. Inbound Logistics
    • Material Handling
    • Warehousing
    • Inventory Control
  33. Support Activities
    Provide the assistance necessary for primary activities to take place
  34. 4 Parts of Support Activities
    • Technological development
    • HR management (hiring, recruiting)
    • Firm infrastructure
    • Procurement
  35. Business-level strategy
    Positions the business to meet or exceed the needs/desires of its targeted audience better than competition via a unique set of integrated activities set.
  36. Business-level strategy deliverables (2)
    • Superior customer/consumer value
    • Sustainable competitive advantage
  37. Core Strategy
    Strategy that the firm forms to describe how it intends to compete in a product market
  38. Elements of relationships w/ customers (3)
    • Reach
    • Richness
    • Loyalty
  39. Reach
    • Access and connection to customer
    • Goal is to extend reach
  40. Richness
    • Depth and detail of the flow of information between firm and customer
    • Example: Airlines communicating via text about flight info
  41. Affiliation
    • Facilitating useful interactions w/ customers
    • Viewing world through customer's eyes
    • Customers' interests
  42. Market Segmentation
    • Who= Determining customers to serve
    • Process used to cluster people w/ similar needs into individual and identifiable groups
  43. Consumer Market Segementation
    • Demographic factors (age, sex, income)
    • Socioeconomic factors (social class)
    • Geographical factors (cultural, regional)
    • Psycological factors (lifestyle, personality traits)
    • Consumption patterns
    • Perceptual patterns
  44. Industrial market segmentation
    • End use segments
    • Product segments
    • Geographic segments
    • Common buying factor segments
    • Customer size segment
  45. What does Determining Need to Satisfy?
    Identifying the targeted customer groups' needs that its goods/services can satisfy
  46. How is determining core competencies necessary to satisfy customer needs?
    Use core competencies to implement value creating strategies and thereby satisfy customer needs
  47. Purpose of business-level strategy
    • Create differences between the firm's position and those of its competitors
    •      Perform differently or different activities
  48. Potential competitve advantages under business-level strategy (2)
    • Lower costs than rivals
    • Ability to differentiate and demand a premium price
  49. 5 Business-Level Strategies
    • 1) Cost leadership
    • 2) Differentiation
    • 3) Focused cost leadership
    • 4) Focused differentiation
    • 5) Integrated cost leadership/differentiation
  50. Cost-leadership strategy
    • Integrated set of actions taken to produce goods/services with features that are acceptable to customers at the lowest cost - relative to competition
    • Standardized goods/services
    • Broad target, cost
    • Examine primary & support activities to lower costs
    • Example: Big lots, Greyhound, Walmart, and Kia are all brand names, low prices
  51. Risks of Cost Leadership
    • 1) Distribution processes may become obsolete
    • 2) Too much focus on cost reductions
    • 3) Imitation
  52. Differentiation Strategy
    • Differentiating yourself from others in the market (innovates)
    • Different: products, features/benefits, superior value permits premium price
    • Broad target, uniqueness (non-standardized)
    • Examples: Lexus, Ralph Lauren, John Deere
  53. Risks of Differentiation
    • 1) Price differential between competitor too large
    • 2) Cease to provide value customers are willing to pay
    • 3) Positive experiences w/ competitors
    • 4) Counterfeits
  54. Focus Strategy
    • Integrated set of actions to serve the needs of an industry segment or niche
    • 1) Particular buyer group (youth, teens, etc.)
    • 2) Different product cone segment
    • 3) Different geographic market
  55. Focused-Cost Leadership Strategy
    • Example: IKEA
    • Cost leader and differentiated products to target market
  56. Focused Differentiation Strategy
    • Example: Denver Based Kazoo Toys
    • Access to unique service and creating value
  57. Risks of Focus Strategies
    • 1) Focus on a more narrowly defined segment
    • 2) Focused markets are attractive
    • 3) Needs of focused segment can become similar to industry wide needs
  58. Integrated Cost Leadership/Differentiation Strategy
    • Engaging in primary and support activities that allow a firm to simultaneously pursue low cost and differentiation
    • Efficiently produce products w/ differentiated features
    • Example: Target ("Expect more, pay less"), Zara
  59. Risks of Integrated Cost Leadership/Differentiation Strategy
    • 1) Difficult to produce differentiated, inexpensive goods
    • 2) Fail to perform primary and support activities
    • 3) May get stuck in the middle of strategies
  60. Flexible Manufacturing Systems (FMS)
    • Computer controlled process
    • Used to produce a variety of products in moderate, flexible quantities wit ha minimum of manual intervention
    • Eliminate "low cost vs. product variety" trade off
  61. Information Networks
    • Link companies w/ suppliers, distributors, and customers
    • Provide flexibility
  62. Total Quality Management Systems (TQM)
    • Developed with the goal of:
    • 1)Increase customer satisfaction
    • 2) Cut costs
    • 3) Reduce time required to introduce innovative products to market
  63. Competitive Dynamics
    All competitive behavior, total set of actions & responses taken by all firms competing within a market
  64. Four Competitive Dynamics
    • 1) Competitors (engage in...)
    • 2) Competitive rivalry (through...)
    • 3) Competitive behavior
    • 4) Results in competitive dynamics
  65. Competitors
    Firms operating in the same market, offering similar products, and targeting similar customers
  66. Competitive Rivalry
    • Ongoing set of competitive actions and responses that occur among firms as they maneuver for an advantageous market spot
    • Influences firms ability to gain & sustain competitive advantages
  67. Competitive Behavior
    Use to try to successfully position itself relative to the "five forces" and defend and build competitive advantages
  68. Multi-market Competition
    Firms compete against each other in service product or geographic markets
  69. Competitor Analysis
    • 1) Market Commonality
    • 2) Resource Similarity
  70. Market Commonality
    • Related in terms of technologies or core competencies needed to develop a competitive advantage
    • Concerned with number of markets with which the firm and competitor are jointly involved and degree of importance the individual markets to each
  71. Resource Similarity
    • Extent to which a firm's tangible and intangible resources are comparable to a competitor's both in type and amount
    • Example: FedEx and UPS
  72. Drivers of Competitive Actions and Responses
    • 1) Awareness
    • 2) Motivation
    • 3) Ability
  73. Awareness
    • Prerequisite to any competitive action
    • Extent to which competitors recognize the degree of their mutual interdependence that results from:
    • 1) Market Commonality
    • 2) Resource Similarity (Greatest when high)
  74. Motivation
    Firm's incentive to take action or respond to a competitor's attack (related to perceived gains or losses)
  75. Ability
    Availability of resources and flexibility they have
  76. Competitive Action
    Strategical or tactical action the firm takes to build or defend its competitive advantages or improve market position
  77. Competitive Responses
    A strategic or tactical action the firm takes to counter the effects of a competitor's competitive action
  78. Strategic Action or Resopnse
    • Market-Based move that involves a significant commitment of organizational resources
    • Difficult to implement and reverse
  79. Tactical Action or Response
    • Market based move that is taken to fine-tune a strategy
    • Involves fewer resources, easy to implement and reverse