Term
| Corporate-level core competencies |
|
Definition
| are complex sets of resources and capabilities that link different businesses, primarily through managerial and technological knowledge, experience, and expertise. |
|
|
Term
|
Definition
| It specifies actions a firm takes to gain a competitive advantage by selecting and managing a group of different businesses competing in different product markets. |
|
|
Term
|
Definition
| are cost savings that the firm creates by successfully sharing some of its resources and capabilities or transferring one or more corporate-level core competencies that were developed in one of its businesses to another of its businesses. |
|
|
Term
|
Definition
| are cost savings realized through improved allocations of financial resources based on investments inside or outside the firm. |
|
|
Term
|
Definition
| exists when a firm is able to sell its products above the existing competitive level or to reduce the costs of its primary and support activities below the competitive level, or both. |
|
|
Term
|
Definition
| exists when two or more diversified firms simultaneously compete in the same product areas or geographical markets. |
|
|
Term
|
Definition
| exists when the value created by business units working together exceeds the value that those same units create working independently. |
|
|
Term
|
Definition
| exists when a company produces its own inputs (backward integration) or owns its own source of output distribution (forward integration). |
|
|
Term
|
Definition
| is a strategy through which one firm buys a controlling, or 100 percent, interest in another firm with the intent of making the acquired firm a subsidiary business within its portfolio. |
|
|
Term
|
Definition
| is a strategy through which two firms agree to integrate their operations on a relatively coequal basis. |
|
|
Term
|
Definition
| is a strategy through which a firm changes its set of businesses or its financial structure. |
|
|
Term
|
Definition
| is a special type of acquisition wherein the target firm does not solicit the acquiring firm |
|
|
Term
| business-level cooperative strategy |
|
Definition
| is a strategy through which firms combine some of their resources and capabilities for the purpose of creating a competitive advantage by competing in one or more product markets. |
|
|
Term
| Complementary strategic alliances |
|
Definition
| are business-level alliances in which firms share some of their resources and capabilities in complementary ways for the purpose of creating a competitive advantage. |
|
|
Term
|
Definition
| is a means by which firms collaborate for the purpose of working together to achieve a shared objective. |
|
|
Term
| corporate-level cooperative strategy |
|
Definition
| is a strategy through which a firm collaborates with one or more companies for the purpose of expanding its operations. |
|
|
Term
| cross-border strategic alliance |
|
Definition
| is a strategy in which firms with headquarters in different countries decide to combine some of their resources and capabilities for the purpose of creating a competitive advantage. |
|
|
Term
| diversifying strategic alliance |
|
Definition
| is a strategy in which firms share some of their resources and capabilities to engage in product and/or geographic diversification. |
|
|
Term
| equity strategic alliance |
|
Definition
| is an alliance in which two or more firms own different percentages of the company they have formed by combining some of their resources and capabilities for the purpose of creating a competitive advantage. |
|
|
Term
|
Definition
| is a strategy in which a firm (the franchisor) uses a franchise as a contractual relationship to describe and control the sharing of its resources and capabilities with its partners (the franchisees). |
|
|
Term
|
Definition
| is a strategic alliance in which two or more firms create a legally independent company to share some of their resources and capabilities for the purpose of developing a competitive advantage. |
|
|
Term
| network cooperative strategy |
|
Definition
| is a strategy wherein several firms agree to form multiple partnerships for the purpose of achieving shared objectives. |
|
|
Term
| nonequity strategic alliance |
|
Definition
| is an alliance in which two or more firms develop a contractual relationship to share some of their resources and capabilities for the purpose of creating a competitive advantage. |
|
|
Term
|
Definition
| is a cooperative strategy in which firms combine some of their resources and capabilities for the purpose of creating a competitive advantage. |
|
|
Term
| synergistic strategic alliance |
|
Definition
| is a strategy in which firms share some of their resources and capabilities to create economies of scope. |
|
|
Term
1. Joint Venture
2. Equity Strategic Alliance
3. Nonequity strategic alliance (contract) |
|
Definition
| What are the 3 types of Strategic Alliances? |
|
|
Term
1. actively solving problems
2. Being trustworthy
3. looking for new ways to add value |
|
Definition
| What makes strategic alliances work? |
|
|
Term
|
Definition
| What type of arrangements have the best way to create a sustainable competitive advantage? |
|
|
Term
|
Definition
| What type of arrangements are difficult to maintain due to rivalry and last a shorter period of time? |
|
|
Term
| "Trust, but verify" -Ronald Reagan |
|
Definition
|
|
Term
| Single business, >95% of business comes from one product. Examples: Wrigley, Jet Blue airlines |
|
Definition
|
|
Term
| about 70-90% of revenue comes from 1 business. Example: UPS (Dominant Business) |
|
Definition
|
|
Term
| Related Constrained. Less than 70% of revenue comes from a single businesses share products, technological and distribution linkages. Examples: Kodak, Proctor and Gamble) |
|
Definition
| Moderate-High Diversification |
|
|
Term
| Less than 70% of reve comes from the dominant bus, and there are only limited links between businesses. Example: United Technologies |
|
Definition
|
|
Term
1. Operational relatedness in sharing activities
2. Corporate relatedness-in transferring skills or corporate core competencies Example: ESPN |
|
Definition
| how is value created from economies of scope in Related Diversification: Economies of Scope? |
|
|
Term
| Very high diversification. Less than 70% of rev. comes from the dominant business and there are no common links (65%, 20%, 15%) |
|
Definition
| Unrelated Diversification |
|
|
Term
| To Provide above avg returns |
|
Definition
| What is the 1st responsibility of the manager? |
|
|
Term
1. Overcoming entry barriers
2. Help with cross-border (go in with locals)
3. Increased diversification
4. Learning and developing new capabilities
5. Reshaping the firm's competitive scope |
|
Definition
| What are the benefits of acquisitions? |
|
|
Term
1. Integration difficulties
2. Too much diversification
3. Managers overly focusing on acquisitions
4. Company can be too large
5. Large debt
6. Inability to achieve synergy |
|
Definition
| What are the problems with acquisitions? |
|
|
Term
|
Definition
| Which has a more positive effect on a firm, downsizing or downscoping? |
|
|
Term
|
Definition
| A reduction in the number of a firm's employees and sometimes in the no. of its operating units. |
|
|
Term
|
Definition
| refers to divestiture, spin-off or some other means of eliminating businesses that are unrelated to a firm's core businesses. It causes firms to refocus on their core business. |
|
|
Term
|
Definition
| a restructuring strategy whereby a party (typically a private equity firm) buys all of a firm's assets in order to take the firm private. |
|
|
