Chapter 2 Flashcards Preview

Strategic Management > Chapter 2 > Flashcards

Flashcards in Chapter 2 Deck (32)
Loading flashcards...
1
Q

surveillance of a firm’s external environment to predict environmental changes and detect changes already under way.

A

environmental scanning

2
Q

a firm’s analysis of the external environment that tracks the evolution of environmental trends, sequences of events, or streams of activities.

A

environmental monitoring

3
Q

a projection based on measurable facts, events, or objects. It is something that will happen.

A

hard trend

4
Q

something that might happen and for which the probability that it might happen can be estimated

A

soft trend

5
Q

a firm’s activities of collecting and interpreting data on competitors, defining and understanding the industry, and identifying competitors’ strengths and weaknesses.

A

competitive intelligence

6
Q

the development of plausible projections about the direction, scope, speed, and intensity of environmental change.

A

environmental forecasting

7
Q

an in-depth approach to environmental forecasting that involves experts’ detailed assessments of societal trends, economics, politics, technology, or other dimensions of the external environment.

A

scenario analysis

8
Q

a framework for analyzing a company’s internal and external environment and that stands for strengths, weaknesses, opportunities, and threats.

A

SWOT analysis

9
Q

factors external to an industry, and usually beyond a firm’s control, that affect a firm’s strategy.

A

general environment

10
Q

genetic and observable characteristics of a population, including the levels and growth of age, density, sex, race, ethnicity, education, geographic region, and income.

A

demographic segment of the general environment

11
Q

of the general environment the values, beliefs, and lifestyles of a society.

A

sociocultural segment

12
Q

how a society creates and exercises power, including rules, laws, and taxation policies.

A

political/legal segment of the general environment

13
Q

innovation and state of knowledge in industrial arts, engineering, applied sciences, and pure science; and their interaction with society.

A

technological segment of the general environment

14
Q

characteristics of the economy, including national income and monetary conditions.

A

economic segment of the general environment

15
Q

influences from foreign countries, including foreign market opportunities, foreign-based competition, and expanded capital markets.

A

global segment of the general environment

16
Q

practice wherein the Internet is used to tap a broad range of individuals and groups to generate ideas and solve problems

A

crowdsourcing

17
Q

a group of firms that produce similar goods or services.

A

industry

18
Q

factors that pertain to an industry and affect a firm’s strategies.

A

competitive environment

19
Q

a tool for examining the industry-level competitive environment, especially the ability of firms in that industry to set prices and minimize costs.

A

porter’s five-forces model of industry competition

20
Q

the possibility that the profits of established firms in the industry may be eroded by new competitors.

A

threat of new entrants

21
Q

decreases in cost per unit as absolute output per period increases.

A

economies of scale

22
Q

the degree that a product has strong brand loyalty or customer loyalty.

A

product differentiation

23
Q

one-time costs that a buyer/supplier faces when switching from one supplier/buyer to another.

A

switching cost

24
Q

the threat that buyers may force down prices, bargain for higher quality or more services, and play competitors against each other.

A

bargaining power of buyers

25
Q

the threat that suppliers may raise prices or reduce the quality of purchased goods and services.

A

bargaining power of suppliers

26
Q

the threat of limiting the potential returns of an industry by placing a ceiling on the prices that firms in that industry can profitably charge without losing too many customers to substitute products.

A

threat of substitute products and services

27
Q

products and services outside the industry that serve the same customer needs as the industry’s products and services.

A

substitute products and services

28
Q

the threat that customers will switch their business to competitors within the industry.

A

intensity of rivalry among competitors in an industry

29
Q

a global network of linked computers that use a common transmission format, exchange information and store data.

A

internet

30
Q

a situation in which multiple players interact, and winners win only by taking from other players.

A

zero-sum game

31
Q

products or services that have an impact on the value of a firm’s products or services.

A

complements

32
Q

clusters of firms that share similar strategies.

A

strategic groups