MGT Midterm exam
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MGT Midterm exam
What is significant about having a competitive advantage?
The ability to identify and respond to environmental change well in advance of competition.
Where does the competitive advantage come from in hyper competitive industries?
an up-to-date knowledge of environmental trends coupled with a willingness to risk a current advantage for a possible new advantage
Industry analysis is primarily concerned with a corporation's
According to Porter, the corporation is most concerned with?
the intensity of competition within its industry
When does a new product development become a core competency?
When it goes beyond one division
What is Tacit knowledge?
Knowledge that is difficult to transfer simply by just writing it down
(ex. Knowledge of systems and processes)
According to Barney's VRIO framework, the exploitation of a resource pertains to the ________ of the resource.
Things that a corporation can do exceedingly well across the corporation are called
The rate at which a firm's underlying resources, capabilities, or core competencies can be duplicated by others is called
Describe a simple structure business
Small entrepreneur-dominated companies with one or two product lines that operate in a small niche market
What is the attribute of corporate culture that is the degree to which members of a unit accept the norms, values, or other culture content associated with the unit
The business model used by IBM to make money not selling IBM products, but by selling its expertise to improve their customers operations is the
Customer Solutions Model
What strategies do most entrepreneurial ventures follow?
What is the significance of a cost leader's lower costs
It allows them to continue to earn profits during times of heavy competition.
What are Distinctive competencies
The particular capabilities and resources a firm possesses and the superior way in which they are used
Explain what it is when a corporation has a Propitious Niche
A corporation's specific competitive role which is so well-suited to the firm's internal and external environment that other corporations are NOT likely to challenge or dislodge it.
What are unique market opportunities that are available for only a particular time are called
What does Business strategy focus on?
improving the competitive position of a corporation's products or services within the industry or market segment served
What are the 2 sections in Business Strategy?
Competitive & Cooperative Strategy
What are the threats in Porters 5 Forces Model?
Threat of Entry, Rivalry, Substitutes, Suppliers, & Buyers
What are the 4 categories of Resources?
Financial, Physical, Human, Organizational
What does VRIO stand for?
Value, Rarity, Imitability, Organization
BCG Matrix: What are Question Marks?
New products with the potential for success but require a lot of cash for development
BCG Matrix: What are Stars
Market leaders at the peak of their product cycle and are able to generate enough cash to maintain their high market share and usually contribute to the company’s profits
BCG Matrix: What are Cash Cows
Products that bring in far more money than is needed to maintain their market share
BCG Matrix: What are Dogs
Products with low market share and do not have the potential to bring in much cash