Chapter 4
The core strategy of a business level strategy describes how it intends to
compete against rivals on a day to day basis in a chosen product market
The Coca Cola Company practices what kind of diversification strategy?
Related Constrained Diversification
International strategy refers to a strategy where firms
sells their goods or services outside its domestic market
When playing Firm's Dillemma what choice should firms choose if competing against their rivals and absorbing a price increase
Raise their Price
In terms of customers when selecting a business-level strategy the firm determines what 3 things
1)Who will be served
2) What needs those target customers have that it will satisfy
3)How those needs will be satisfied
Firms seek to create value from economies of scope through all of the following EXCEPT
A) skill transfers
B)activity sharing
C)transfers of corporate core competencies
D) de-integration
D) de-integration
The 3 international corporate level strategies are
multi-domestic, global, and transnational
Google was recently found guilty by the DOJ for violating anti-trust laws as they held a _________ over the advertising industry
monopoly
The 3 Dimensions of a Firms relationships with customers are
Richness,Reach, and Affiliation
The 3 value reasons firms use corporate level diversification strategies are
Value-creation, value neutral, and value reduction.
Name 1 of the primary reasons for failure for strategic alliances
Incompatible Partners, Conflict between the partners, Difficulty in managing
In the 1960's and1970's the _________ industry experienced high levels of mergers and acquisitions which resulted in the DOJ passing stricter Anti- Trust Laws.
U.S Airline
Name the 5 business level strategies
1.Cost leadership
2.Differentiation
3.Focused cost leadership
4.Focused differentiation
5.Integrated cost leadership / differentiation
What are the 5 categories of businesses level diversification strategies
1.Single business
2.Dominant business
3.Related constrained
4.Related linked
5.Unrelated
What are the 3 Basic Benefits of International Strategy
1)Increased Market Size
2)Economies of Scale and Learning
3)Location Advatanges
If larger firms that are slower to respond to attacks but have a lot of power are considered dobermans, than smaller firms who are quicker to respond and are more flexible are considered
Chihuahuas
What are the 3 competitive risks of the cost leadership strategy
1.A loss of competitive advantage to newer technologies
2.A failure to detect changes in customers’ needs
3.The ability to imitate the cost leader’s competitive advantage through competitors’ own distinct strategic actions
Research evidence shows that diversification and firm size are highly correlated.
As firm size increases, so does:
Executive Compensation and Social Status
Name the 4 types of distances associated with the "liability of foreignness"
1)Cultural
2)Administrative
3)Geographic
4) Economic
What is the #1 goal all firms should try to achieve
Above average returns