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Business Strategy
Evaluation and Control
Corporate Strategy
Functional Strategy
International Strategy
100
The active cooperation of firms within an industry to reduce output and raise prices in order to get around the normal economic law of supply and demand.
What is collusion?
100
A way to document the company’s impact on the environment.
What is ISO 14000 Standards Series?
100
Typically contracts for the construction of operating facilities in exchange for a fee. The facilities are transferred to the host country or firm when they are complete.
What is a turnkey operation?
100
Purchasing from someone else a product or service that had been previously provided internally. Thus, it is the reverse of vertical integration.
What is outsourcing?
100
Process by which a firm approaches its cross-border activities and those of competitors and plans to approach them in the future.
What is international strategy?
200
A long-term cooperative arrangement between two or more independent firms or business units that engage in business activities for mutual economic gain.
What is strategic alliance?
200
The confusion of means with ends and occurs when activities originally intended to help managers attain corporate objectives become ends in themselves—or are adapted to meet ends other than those for which they were intended. Two types are behavior substitution and suboptimization.
What is goal displacement?
200
Assuming a function previously provided by a supplier.
What is backward integration?
200
A company is acquired in a transaction financed largely by debt, usually obtained from a third party, such as an insurance company or an investment banker. Ultimately the debt is paid with money generated from the acquired company’s operations or by sales of its assets.
What is a leveraged buyout?
200
When a firm competes against another firm in multiple product markets or multiple geographic markets (or both).
What is multipoint competition?
300
A partnership of similar companies in similar industries that pool their resources to gain a benefit that is too expensive to develop alone, such as access to advanced technology.
What is a mutual service consortium?
300
Managers consider only current tactical or operational issues and ignore long-term strategic ones.
What is a short-term orientation?
300
A company does not make any of its key supplies but purchases most of its requirements from outside suppliers that are under its partial control. A company may not want to purchase outright a supplier or distributor, but it still may want to guarantee access to needed supplies, new products, technologies, or distribution channels.
What is quasi-integration?
300
A strategy of imitating the products of competitors to achieve a low-cost competitive advantage.
What is a technological follower?
300
Foreign-country entry vehicle in which a firm uses an intermediary to perform most foreign marketing functions.
What is exporting?
400
An agreement in which a firm grants rights to another firm in another country or market to produce and/or sell a product.
What is a licensing arrangement?
400
Are very useful to boards of directors in evaluating management’s handling of various corporate activities. These have been developed to evaluate activities such as corporate social responsibility, functional areas such as the marketing department, and divisions such as the international division. These can be helpful if the board has selected particular functional areas or activities for improvement.
What are management audits?
400
Assuming a function previously provided by a distributor.
What is forward integration?
400
The placement of an activity or a function to a wholly owned company or an independent provider in another country. A global phenomenon that has been supported by advances in information and communication technologies, the development of stable, secure, and high-speed data transmission systems, and logistical advances like containerized shipping.
What is offshoring?
400
Considers the dimensions of culture, administration, geography, and economics to assess the distance created by global expansion.
What is CAGE framework tool?
500
Concentrates on a particular buyer group, product line segment, or geographic market.
What is differentiation focus?
500
A firm needs to develop measures that predict likely profitability. This can measure variables that influence future profitability.
What are steering controls?
500
If a corporation with a weak competitive position in an industry is unable either to pull itself up by its bootstraps or to find a customer to which it can become a captive company.
What is a sell-out strategy?
500
A new approach to evaluating alternatives under conditions of high environmental uncertainty.
What is real-options?
500
Form foreign direct investment in which a firm starts a new foreign business from the ground up.
What is greenfield investment?