Bus 475 - Exam 1
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1. SWOT analysis: a planning tool used to identify a firm's competencies, limitations
that the company needs to improve on, areas of growth, as well as the areas that
the company should completely avoid.
2. internal analysis: the examination of a company's resources and capabilities to
configure a firm's ability to deliver unique value
3. capital market, product market, organizational, community: four primary
stakeholder groups
4. substitute: a product that is fundamentally different yet serves the same function
or purpose as another product
5. economic growth: steady growth in the productive capacity of the economy (and
so a growth of national income)
6. causal ambiguity: the difficulty of identifying the actual cause of a firm's success-
ful performance
7. tacit knowledge: strategies for success that are not explicitly taught but that
instead must be inferred
8. positive network externalities: when the value of a product increases with the
number of users
9. virtuous circle: when more sellers attract more buyers, who, in turn, attract more
sellers
10. first-mover advantage: economic and strategic advantage gained by being the
first company to enter an industry
11. complexity: resources, capabilities, and priorities become difficult for competi-
tors to imitate when they span the organization or contain many interrelated ele-
ments
12. time compression diseconomies: the cost of internal development increases
exponentially as the time taken to develop the resource shrinks
13. network effect: each person who uses a product or service benefits as more
people participate
14. currency exchange rate: the price of one country's currency expressed in
terms of another country's currency
15. inflation: an increase in the overall level of prices in the economy
16. interest rate: Percentage of amount borrowed to be added to the amount loaned
and paid back
17. large companies can reduce per-unit cost of production: what is a primary
characteristic of employing automated equipment in a company with high levels of
production?
18. higher R&D costs allow for global expansion: what is true of research and
development (R&D)?
1/4
Study online at https://quizlet.com/_3r15vh
1. SWOT analysis: a planning tool used to identify a firm's competencies, limitations
that the company needs to improve on, areas of growth, as well as the areas that
the company should completely avoid.
2. internal analysis: the examination of a company's resources and capabilities to
configure a firm's ability to deliver unique value
3. capital market, product market, organizational, community: four primary
stakeholder groups
4. substitute: a product that is fundamentally different yet serves the same function
or purpose as another product
5. economic growth: steady growth in the productive capacity of the economy (and
so a growth of national income)
6. causal ambiguity: the difficulty of identifying the actual cause of a firm's success-
ful performance
7. tacit knowledge: strategies for success that are not explicitly taught but that
instead must be inferred
8. positive network externalities: when the value of a product increases with the
number of users
9. virtuous circle: when more sellers attract more buyers, who, in turn, attract more
sellers
10. first-mover advantage: economic and strategic advantage gained by being the
first company to enter an industry
11. complexity: resources, capabilities, and priorities become difficult for competi-
tors to imitate when they span the organization or contain many interrelated ele-
ments
12. time compression diseconomies: the cost of internal development increases
exponentially as the time taken to develop the resource shrinks
13. network effect: each person who uses a product or service benefits as more
people participate
14. currency exchange rate: the price of one country's currency expressed in
terms of another country's currency
15. inflation: an increase in the overall level of prices in the economy
16. interest rate: Percentage of amount borrowed to be added to the amount loaned
and paid back
17. large companies can reduce per-unit cost of production: what is a primary
characteristic of employing automated equipment in a company with high levels of
production?
18. higher R&D costs allow for global expansion: what is true of research and
development (R&D)?
1/4
