SEVI 3013 Final Exam 2023 Questions and Answers
Complete
4 components of external environmental analysis
scanning, monitoring, forecasting, assessing
Segments of general environment
- Demographic (population, age, geographic, ethnic mix, income distribution)
- Economic (economic uncertainty and nature and direction of economy in which firm
competes)
- Political/Legal (Laws and regulations and the gov. influence)
- Sociocultural (Society's attitudes and cultural values)
- Global (relevant new global markets and their critical cultural/institutional
characteristics, existing markets that are changing, and important international political
events)
- Technological (creating new knowledge and translating it into innovations)
- Sustainable Physical (changes in physical environment and business practices)
Porter's 5 forces model
-threat of new entrants, rivalry among competing firms, bargaining power of suppliers,
bargaining power of buyers, threat of substitute products
-determine the profitability potential of an industry and see how competitive competitors
could be
-predict current and future profitability
-only works on an industry level
-5 forces are favorable when each factor has a lower intensity
Strategic groups
set of firms following similar strategies; clearly identifying niches/holes, competition, and
movement into new groups can be challenging; competition is more fierce between
firms within the group
Resources
tangible or intangible; broad in scope; cover a spectrum of individual, social, and
organizational phenomena
Capabilities
bundles of resources or organizational capability to deploy bundles of resources; allow
an organization to perform certain aspects of its business well
Core competenices
capabilities that are rare, valuable, imperfectly-imitable/non-substitutable and organized
to capture value; capabilities that serve as a source of competitive advantage for a firm
over its rivals
VRIO framework
-value, rarity, imitability, and organization
-categorize resources to determine which are a competitive advantage
-RESOURCES are foundation of CAPABILITIES which are combined to create CORE
COMPETENCIES that help firms gain competitive advantage
entry tickets
, competencies that a firm must necessarily have to survive in the industry; valuable and
non-substitutable capabilities; must have all to be successful because without them you
will fail
core rigidities
former core competencies that now generate inertia and stifle innovation and are no
longer useful to firm; occur when capability is not valuable
value chain
allows the firm to understand the parts of its operations that create value and those that
do not; consists of primary and support activities
reach
access to customers
richness
depth and detail of communications with customers
affiliation
facilitation of customer relationship; viewing the world through the customer's eyes and
constantly seeking ways to create more value for the customer
business-level strategies
Cost Leadership, Differentiation, Focused low cost, Focused differentiation, stuck in the
middle, and integrated cost differentiation strategies
What is a business level strategy?
an integrated and coordinated set of commitments and actions the firm uses to gain a
competitive advantage by exploiting core competencies in specific product markets;
how firm delivers value to customer with strategy while maintaining a competitive
advantage
competitor analysis
focuses on each company against which a firm competes directly; capabilities, current
strategies, assumptions, future objectives, response
market commonality
number of markets with which the firm and a competitor are jointly involved and the
degree of importance of the individual markets to each; the greater amount of this, the
more firms acknowledge they're direct competitors
resource similarity
extent to which the firm's tangible and intangible resources compare favorably to a
competitor's in terms of type and amount
drivers of competitive behavior
awareness, motivation, ability
strategic actions
market-based move that involves a significant commitment of organizational resources
and is difficult to implement or reverse
tactical actions
a market-based move that is taken to fine-tune a strategy; usually involves fewer
resources; relatively easy to implement and reverse
predictors of likelihood of attack
market commonality, resource similarity, awareness, motivation, ability, first-mover
benefits, organizational size, quality
drivers of likelihood of response
Complete
4 components of external environmental analysis
scanning, monitoring, forecasting, assessing
Segments of general environment
- Demographic (population, age, geographic, ethnic mix, income distribution)
- Economic (economic uncertainty and nature and direction of economy in which firm
competes)
- Political/Legal (Laws and regulations and the gov. influence)
- Sociocultural (Society's attitudes and cultural values)
- Global (relevant new global markets and their critical cultural/institutional
characteristics, existing markets that are changing, and important international political
events)
- Technological (creating new knowledge and translating it into innovations)
- Sustainable Physical (changes in physical environment and business practices)
Porter's 5 forces model
-threat of new entrants, rivalry among competing firms, bargaining power of suppliers,
bargaining power of buyers, threat of substitute products
-determine the profitability potential of an industry and see how competitive competitors
could be
-predict current and future profitability
-only works on an industry level
-5 forces are favorable when each factor has a lower intensity
Strategic groups
set of firms following similar strategies; clearly identifying niches/holes, competition, and
movement into new groups can be challenging; competition is more fierce between
firms within the group
Resources
tangible or intangible; broad in scope; cover a spectrum of individual, social, and
organizational phenomena
Capabilities
bundles of resources or organizational capability to deploy bundles of resources; allow
an organization to perform certain aspects of its business well
Core competenices
capabilities that are rare, valuable, imperfectly-imitable/non-substitutable and organized
to capture value; capabilities that serve as a source of competitive advantage for a firm
over its rivals
VRIO framework
-value, rarity, imitability, and organization
-categorize resources to determine which are a competitive advantage
-RESOURCES are foundation of CAPABILITIES which are combined to create CORE
COMPETENCIES that help firms gain competitive advantage
entry tickets
, competencies that a firm must necessarily have to survive in the industry; valuable and
non-substitutable capabilities; must have all to be successful because without them you
will fail
core rigidities
former core competencies that now generate inertia and stifle innovation and are no
longer useful to firm; occur when capability is not valuable
value chain
allows the firm to understand the parts of its operations that create value and those that
do not; consists of primary and support activities
reach
access to customers
richness
depth and detail of communications with customers
affiliation
facilitation of customer relationship; viewing the world through the customer's eyes and
constantly seeking ways to create more value for the customer
business-level strategies
Cost Leadership, Differentiation, Focused low cost, Focused differentiation, stuck in the
middle, and integrated cost differentiation strategies
What is a business level strategy?
an integrated and coordinated set of commitments and actions the firm uses to gain a
competitive advantage by exploiting core competencies in specific product markets;
how firm delivers value to customer with strategy while maintaining a competitive
advantage
competitor analysis
focuses on each company against which a firm competes directly; capabilities, current
strategies, assumptions, future objectives, response
market commonality
number of markets with which the firm and a competitor are jointly involved and the
degree of importance of the individual markets to each; the greater amount of this, the
more firms acknowledge they're direct competitors
resource similarity
extent to which the firm's tangible and intangible resources compare favorably to a
competitor's in terms of type and amount
drivers of competitive behavior
awareness, motivation, ability
strategic actions
market-based move that involves a significant commitment of organizational resources
and is difficult to implement or reverse
tactical actions
a market-based move that is taken to fine-tune a strategy; usually involves fewer
resources; relatively easy to implement and reverse
predictors of likelihood of attack
market commonality, resource similarity, awareness, motivation, ability, first-mover
benefits, organizational size, quality
drivers of likelihood of response
