MGMT 449 - MIDTERM - CH 4

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acelaker
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297609
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MGMT 449 - MIDTERM - CH 4
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2015-03-04 23:58:48
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MGMT 449 MIDTERM
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MGMT 449 - MIDTERM - CH 4
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  1. Best indicators of a well-conceived, well-executed strategy
    ●The company is achieving its stated financial and strategic objectives.

    The company is an above-average industry performer
  2. ♦Competitive Assets
    ●Are the firm’s resources and capabilities.

    • ●Are the determinants of its competitiveness and ability to succeed in the
    • marketplace.

    • ●Are what a firm’s strategy depends on to develop sustainable competitive advantage
    • over its rivals.
  3. ♦SWOT Analysis
    uInternal strengths (the basis for strategy)

    uInternal weaknesses (deficient capabilities)

    uMarket opportunities (strategic objectives)

    uExternal threats (strategic defenses)
  4. Identifying a Company’s Internal Strengths
    ♦A Competence
    Is an activity that a firm has learned to perform with proficiency—a capability
  5. Identifying a Company’s Internal Strengths
    ♦A Core Competence
    • ●Is a proficiently performed internal activity that is central to a firm’s strategy
    • and competitiveness.
  6. Identifying a Company’s Internal Strengths
    ♦A Distinctive Competence
    ●Is a competitively valuable activity that a firm performs better than its rivals.
  7. Identifying a Company’s Weaknesses and Competitive Deficiencies
    ♦A Weakness (Competitive Deficiency)
    • Is something a firm lacks or does poorly (in comparison to others) or a condition
    • that puts it at a competitive disadvantage in the marketplace
  8. Identifying a Company’s Weaknesses and Competitive Deficiencies
    ♦Types of Weaknesses:
    ●Inferior skills, expertise, or intellectual capital

    ●Physical, organizational, or intangible assets deficiencies

    ●Missing or inferior capabilities in key areas
  9. ♦Characteristics of Market Opportunities:
    ●An absolute “must pursue” market
    uRepresents much potential but is hidden in “fog of the future.”
  10. ♦Characteristics of Market Opportunities:
    ●A marginally interesting market
    uPresents high risk and questionable profit potential.
  11. ♦Characteristics of Market Opportunities:
    ●An unsuitable\mismatched market
    The firm’s strengths are not matched to market factors—best avoided
  12. ♦Signs of A Firm’s Competitive Strength:
    ●Its prices and costs are in line with rivals.

    ●Its customer-value proposition is competitive and cost effective.

    Its bundled capabilities are yielding a sustainable competitive advantage
  13. ♦The Value Chain
    ●Identifies the primary internal activities that create customer value and the related support activities.

    ●Permits a deep look at the firm’s cost structure and ability to offer low prices.

    ●Reveals the emphasis that a firm places on activities that enhance differentiation and support higher prices.
  14. ♦Competitive Advantage Indicators:
    ●Ability to effectively and efficiently bundle resources and capabilities.

    ●Achieving a high rank on each key success factor.

    ●Having a net competitive advantage over its rivals.
  15. The Competitive Strength Assessment Process
    • STEP 1)
    • Make a list of the industry’s key success factors and measures of competitive strength or weakness (6 to 10 measures usually suffice).

    • STEP 2)
    • Assign a weight to each competitive strength measure based on its perceived importance

    • STEP 3)
    • Rate the firm and its rivals on each competitive strength measure and multiply by
    • each measure by its corresponding weight
  16. A core competence
    is typically knowledge-based, residing in people and in a company's intellectual capital and not in its assets on the balance sheet; moreover, a core competence tends to be grounded in cross-department combinations of knowledge and expertise rather than being the product of a single department or work group.
  17. Which of the following analytical tools are particularly useful for determining whether a company's prices and costs are competitive?
    Value chain analysis and benchmarking.
  18. A company's value chain consists of
    the collection of activities it performs in the course of designing, producing, marketing, delivering, and supporting its product or service and delivering value to customers—these activities can be grouped into (a) the primary activities that are foremost in creating value for customers and (b) the related support activities that facilitate and enhance the performance of the primary activities.
  19. Benchmarking
    is a potent tool for improving a company's own internal activities that is based on learning how other companies perform them and borrowing "best practices".
  20. A company's cost competitiveness is largely a function of
    how efficiently it manages its overall value chain activities relative to how efficiently competitors manage theirs.
  21. For a company to translate performance of value chain activities into competitive advantage, it
    must (1) develop core competencies and maybe a distinctive competence that rivals don't have or can't quite match and that are instrumental in helping it deliver attractive value to customers or (2) be more cost efficient in how it performs value chain activities such that it has a low-cost advantage.

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