Term
| 2 types of internal innovation and their strategic implications |
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Definition
| 1. Incremental innovation - induced strategic behavior: the strategy in place is filtered through the firm's existing hierarchy [does not alter firm's current strategy] 2. Radical innovation - autonomous strategic behavior: knowledge is integrated into the development of new products that are taken into new markets in new ways of creating value [tends to diverge from firm's current strategy] |
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Term
| 3 factors that attribute to value creation from internal innovation |
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Definition
| 1. Entrepreneurial mind-set [necessary for managers and employees to consistently try to identify entrepreneurial opportunities that the firm can pursue by developing new goods and services and new markets] 2. Cross functional product and development teams [promotes new ideas and commitment to implementation afterwards] 3. Effective leadership and shared values [required to promote integration and vision for innovation and commitment to it] |
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Term
|
Definition
| Sum of incentive, monitoring, and enforcement costs, and individual financial losses incurred by the principals, because governance mechanisms can’t guarantee total compliance by the agent. |
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Term
|
Definition
| One that exists when one or more people hire another person as decision-making specialist to perform a service. |
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Term
| Associations and Consortia |
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Definition
| can strengthen member firms in dealing with external stakeholders such as legislators suppliers and customers |
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Term
| Autonomous Strategic Behavior |
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Definition
| bottom-up process in which product champions pursue new ideas, often through a political process, to develop and coordinate the commercialization of a new good or service |
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Term
|
Definition
| Individuals responsible for representing the firm’s owners by monitoring top-level managers’ strategic decisions. |
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Term
|
Definition
| Group of shareholder-elected individuals whose primary responsibility is to act in the owners’ interests by monitoring and controlling top-level executives. |
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Term
| Board of directors' classification |
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Definition
| (1) Insiders (2) Related outsiders (3) Outsiders |
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Term
| Characteristics of Entrepreneurial Firms |
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Definition
| 1. Risk takers 2. Committed to innovation 3. Proactive |
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Term
| Characteristics of Entrepreneurs |
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Definition
| 1. Optimism 2. High motivation 3. Willingness to take responsibility 4. Courage 5. Passion for Value 6. Entrepreneurial mind-set |
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Term
| Competition-reducing cooperative strategies |
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Definition
| an alliance that addresses the external environment by giving the partnering firms differential advanatages in their markets |
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Term
| Competitive Response Alliances |
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Definition
| an alliance that addresses the external environment by helping firms deal with the actions of competitors |
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Term
|
Definition
| a structure in which the firms divisions are completely independent. |
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Term
| Complexities of Managing Multinational Firms |
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Definition
| Geographic dispersion, Costs of Coordination, logistical costs, trade barriers cultural diversity, host government |
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Term
|
Definition
| a structure in which horizontal integration is used to bring about interdivisional cooperation. |
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Term
|
Definition
| a structure in which horizontal integration is used to bring about interdivisional cooperation. |
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Term
| Cooperative strategy used to effectively address forces in the external environment |
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Definition
| competitive response alliances, uncertainty-reducing alliances, competition- reducing alliances, associations and consortia |
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Term
| Cooperative strategy used to enhance differentiation or reduce costs |
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Definition
| complementary strategic alliances or network cooperative strategies |
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Term
| Cooperative strategy used to promote growth and/or diversification |
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Definition
| franchising, diversification strategic alliances, international cooperative strategies |
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Term
| Corporate Entrepreneurship |
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Definition
| use or application of entrepreneurship within an established firm |
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Term
|
Definition
| Mechanisms used to manage relationships among stakeholders, and to determine and control the strategic direction and performance of organizations. Primary objective: Align top-level managers' interests with those of shareholders. |
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Term
| Corporate level core competencies |
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Definition
| Complex sets of resources and capabilities that link different businesses, primarily through managerial and technological knowledge, experience, and expertise. |
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Term
|
Definition
| specifies actions a firm takes to gain a competitive advantage by selecting and managing a portfolio of businesses that compete in different product markets or industries. |
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Term
| Cross-functional product development teams |
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Definition
| facilitates organizational efforts to integrate different activities and coordinate and apply knowledge from different functional areas to maximize innovation |
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Term
|
Definition
| Large number of shareholders with small holdings and few, if any, large-block shareholders. Produces weak monitoring of managers’ decisions. |
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Term
| Distributed alliance networks |
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Definition
| often the the organizational structure used to manage international cooperative strategies |
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Term
| Does downsizing or downscoping have a more positive effect on firm performance? |
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Definition
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Term
| Dominant business diversification strategy |
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Definition
| the firm generates between 70 and 95 percent of its total revenue within a single business area. |
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Term
|
Definition
| refers to a divestiture, spin-off, or some toher means of eliminating businesses that are unrelated to a firm's core businesses; described as a set of actions that causes a firm to strategically refocus on its core businesses |
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Term
|
Definition
| a reduction in the number of firm employees & sometimes in the nubmer of operating units |
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Term
| Dynamic Alliance Networks |
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Definition
| a type of network cooperative strategy formed in industries characterized by frequent product innovations and short product life cycles |
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Term
| Economic Risks of international expansion |
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Definition
| 1) Differences and fluctuations in currency values 2) Investment losses due to political risk |
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Term
|
Definition
| Cost savings that the firm creates by successfully transferring some of its capabilities and core competencies to create value. |
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Term
|
Definition
| viewpoint which values uncertainty in the marketplace and seeks to continuously identify opportunities with the potential to lead to important innovations |
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Term
| Entrepreneurial Opportunities |
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Definition
| conditions in which new products or services can satisfy a need in the market, due to competitive imperfections and unevenly distributed information in the market |
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Term
|
Definition
| 1. Produce more radical innovations 2. Possess strategic flexibility and willingness to take risks 3. Do more opportunity seeking |
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Term
|
Definition
| individuals throughout the organization, acting independently or as part of an organization, who create a new venture or develop an innovation and take risks by introducing it into the marketplace |
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Term
|
Definition
| process by which individuals or groups identify and pursue entrepreneurial opportunities without the immediate constraint of the resources they currently control: desirable and important mechanizm for creating opportunities, helping firms adapt to change, and driving national economies |
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Term
|
Definition
| Governance mechanism that seeks to align the interests of top managers and owners through salaries, bonuses, and long-term incentive compensation. |
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Term
|
Definition
| Use of salary, bonuses, and long-term incentives to align managers’ decisions with shareholders’ interests. |
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Term
| External governance mechanism |
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Definition
| Market for corporate control |
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Term
| Facilitating integration and implementation of cross-functional teams |
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Definition
| shared values, effective leadership, and high-quality communication systems are important to successfully innovate and to facilitate cross-functional integration |
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Term
| Factors that Encourage Innovation |
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Definition
| vision and culture that support innovation, growth, and risk; top management support and organizational champions; teamwork and collaboration, decentralized approval process, valuing employee ideas, excellent communications; rewards for entrepreneurship; focus on learning |
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Term
| Factors the Discourage Innovation |
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Definition
| rigid bureaucracy and conservative decision making; absence of mgmt. support or champions; difficult approval process; closed-door offices; harsh penalties for failure; inadequate resources |
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Term
|
Definition
| emphasized to evaluate the performance of the firm following the unrelated diversification strategy, usually quantitative. |
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Term
|
Definition
| are cost savings realized through improved allocations of financial resources based on investments inside or outside the firm. |
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Term
|
Definition
| Building a shared vision and individual commitment through an integrated network |
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Term
|
Definition
| international strategy through which the firm offers standardized products across country markets, with the competitive strategy being dictated by the home office |
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Term
|
Definition
| 1) Emphasized economies of scale 2) facilitated by improved global accounting and financial reporting standards 3) centralizes strategic and operating decisions 4) Interdependent SBUs operating in each country 5) Home office integrates across SBUs, adding management complexity 6) Produces lower risk 7) Less responsive to local market opportunities 8) less effective learning processes due to pressure to conform and standardize |
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Term
| How can the probability that downsizing will result in increased performance be increased? |
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Definition
| it should be an intentional, proactive management strategy, rather than being forced on the firm as a result of involuntary decline. |
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Term
| How is private synergy created? |
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Definition
| when the combination and integration of the acquiring and acquired firm's assets yield capabilities and core competencies that could not be developed by combining and integrating either firm's assets with another company. |
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Term
|
Definition
| adoption of an innovation by similar firms |
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Term
| Incentives for Using an International Strategy |
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Definition
| 1) Increased market sized, 2) greater returns on major capital investments or on investments in new products and processes, 3) greater economies of scale, scope, or learning, 4) competitive advantage through location |
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Term
|
Definition
| process of internal innovation achieved by building on existing knowledge bases and providing small improvement in well-defined current product lines |
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Term
| Induced Strategic Behavior |
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Definition
| top-down process whereby the firm's current strategy and structure foster product innovations that are closely associated with the strategy and structure |
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Term
|
Definition
| process of creating a commercial product from an invention |
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Term
| Innovation through Acquisitions |
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Definition
| Acquisitions can be used to support innovation efforts and rapidly extend product lines. The risks associated with innovation through acquisition should be measured when selecting this strategic option - firms may lose intensity in R&D efforts and ability to produce patents [substitute the ability to buy innovations for an ability to produce innovations internally] |
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Term
| Innovation through Cooperative Strategies |
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Definition
| Both entrepreneurial ventures and established firms use alliances to share the resources and knowledge required to produce continuous innovation for the firm. They each measure the risks associated with innovation through cooperative strategies |
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Term
|
Definition
| Active top-level managers in the corporation, source of information about firm’s day-to-day operations. |
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Term
|
Definition
| Financial institutions (stock mutual and pension funds) that control large-block shareholder positions. Powerful governance mechanism. |
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Term
| Internal Corporate Venturing |
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Definition
| set of activities firms use to develop internal inventions and innovations |
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Term
| Internal governance mechanisms |
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Definition
| (1) Ownership concentration (2) Board of directors (3) Executive Compensation |
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Term
| International Corporate-Level Strategy |
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Definition
| focuses on the scope of a firm's operations through both product and geographic diversification |
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Term
| International Diversification |
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Definition
| strategy through which a firm expands the sales of its goods or services across the borders of global regions and counties into different geographic locations or markets |
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Term
| International Entrepreneurship |
|
Definition
| process in which firms creatively discover and exploit opportunities that are outside their domestic markets in order to develop a competitive advantage |
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Term
| International Entrepreneurship Risks |
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Definition
| 1. Unstable foreign currencies 2. Inefficient markets 3. Insufficient infrastructures to support businesses 4. Limitations on market size and growth |
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Term
| International Entry Modes |
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Definition
| 1) Exporting - high cost, low control 2) Licensing - Low cost, low risk, little control, low returns 3) Strategic Alliance - shared cost, shared resources, shared risk, problems of integration 4) Acquisition - Quckic access to new market, high cost, complex negotiations, problems of merging with domestic operations 5) New wholly owned subsidiary - complex, ofeten costly, time consuming, high risk, maximum control, potential above-average returns |
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Term
|
Definition
| strategy through which the firm sells its goods or services outside the domestic market |
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Term
|
Definition
| act of creating or developing a new product or process |
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Term
|
Definition
| Invention brings something new into BEING [technical criteria determine its success] v. Innovation brings something new into USE [commercial criteria determine its success] |
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Term
|
Definition
| Typically own at least 5% of a corporation’s issued shares. |
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Term
| Long-term incentive plans |
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Definition
| Help firms cope with or avoid potential agency problems by linking managerial wealth to that of common shareholders. |
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Term
| Managerial Defense Tactics |
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Definition
| Tactics to fend off hostile takeovers. Include: (1) Poison Pill (2) Corporate Charter (3) Golden Parachute (4) Litigation (5) Greenmail (6) Standstill (7) Capital Structure |
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Term
|
Definition
| The seeking of self-interest with guile (cunning or deceit). |
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Term
| Managers' Benefits of Diversification |
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Definition
| (1) Increase firm size. (Positively related to executive compensation; increases management complexity and may require more pay). (2) Reduce employment risk (risk of managers losing their jobs, compensation or reputations) |
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Term
| Market for Corporate Control |
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Definition
| External governance mechanism that becomes active when a firm’s internal controls fail. Composed of individuals and firms that buy ownership positions in or take over potentially undervalued corporations so they can form new divisions in established diversified companies or merge 2 previously separate firms. It ensures that managers who are ineffective or act opportunistically are disciplined. |
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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. |
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Term
|
Definition
| Organizational structure in which a dual structure combines both functional specialization and business product or project specialization. |
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Term
|
Definition
| 1. Internal innovation 2. Cooperative ventures 3. Acquisitions |
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|
Term
| Methods of Internal Innovation |
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Definition
| Methods to develop inventions and innovations WITHIN the organization 1. Internal Corporate Venturing 2. Incremental Innovation 3. Induced Strategic Behavior 4. Radical Innovation 5. Autonomous Strategic Behavior 6. Product Champion |
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Term
| Modern public corporation |
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Definition
| Based on the efficient separation of ownership and managerial control. |
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Term
|
Definition
| International strategy in which strategic and operating decisions are decentralized to the strategic business-unit (SBU) in each country to allow the units to tailor products to local markets |
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Term
| Multidomestic Strategy Features |
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Definition
| 1) Variations of competition within each country 2) Customize products to meet needs of local customers 3) Decentralize firms strategic and operating decisions 4) Takes steps to isolate firm from global competitive forces 5) Uncertainty due to differences across markets |
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Term
|
Definition
| When two or more diversified firms simultaneously compete in the same product or geographic markets. |
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Term
| Network Cooperative Strategy - Competencies |
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Definition
| to increase network effectiveness the strategic center firm seeks ways to support each member's efforts to develop core competencies that can benefit the network |
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Term
| Network Cooperative Strategy - Race To Learn |
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Definition
| the strategic center firm emphasizes that the principal dimensions of competition are between value chains and between networks of value chains. |
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Term
| Network Cooperative Strategy - Strategic Outsourcing |
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Definition
| the strategic center firm outsources and partners with more firms than do other network members. At the sme time the strategic center firm requires network opportunities for the network to create value through its cooperative work |
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Term
| Network Cooperative Strategy - Technology |
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Definition
| The strategic center firm is responsible for managing the development and sharing of technology based ideas among network members. All network members report technology development activities to strategic center firm |
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Term
|
Definition
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Term
|
Definition
| Attitude (inclination) and a set of behaviors (specific acts of self-interest) |
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Term
|
Definition
| Guide the use of strategy, indicate how to compare actual results with expected results, and suggest corrective actions to take when the difference between actual and expected results is unacceptable. |
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Term
|
Definition
| Provide independent counsel, may hold top-level managerial positions in other companies or elected before the beginning of the current CEO’s tenure. |
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Term
|
Definition
| Defined by number of large-block shareholders and the total percentage of shares they own. High degrees of ownership concentration = higher probability that managers’ strategic decisions will increase shareholder value. |
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Term
|
Definition
| Relative amounts of stock owned by individual shareholders and institutional investors. |
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|
Term
| Political risks of International expansion |
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Definition
| 1) Government instability 2)conflict or war 3) government regulation 4) conflicting and diverse legal authorities 5) Potential nationalization of private assets 6) government corruption 7) changes in government policies |
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Term
|
Definition
| International business-level stategies are usually grounded in one or more home country advantages. The diamond model emphasizes four dimensions: factors of production; demand conditions; related and supporting industries' and patterns of firm strategy, structure, and rivalry. |
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Term
|
Definition
| individual with an entrepreneurial vision of a new good or service who seeks to create support in the organization for its commercialization |
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Term
|
Definition
| process of internal innovation achieved by generating significant technological breakthroughs and creating new knowledge |
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Term
| Reasons to establish a strategic alliance in a fast cycle market |
|
Definition
| (1) speed up development of new goods or services (2) speed up new market entry (3) maintain market leadership (4) from an industry technology standard (5) share risky R&D expenses (6)overcome uncertainty |
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|
Term
| Reasons to establish a strategic alliance in a slow cycle market |
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Definition
| (1) gain access to restricted market (2) establish a franchise in a new market (3) maintain market stability |
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Term
| Reasons to establish a strategic alliance in a standard cycle market |
|
Definition
| (1)gain market power (reduce industry overcapacity) (2)gain access to complementary resources (3)establish better economies of scale (4)overcome trade barriers (5) meet competitive challenges from other competitors (6) pool resources for very large capital projects learn new business techniques |
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Term
|
Definition
| Have some relationship with the firm, but not involved with the corporation’s day-to-day activities. |
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|
Term
| Related diversification strategy |
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Definition
| when a firm generates more than 30 percent of its sales revenue outside a dominant business and has businesses that are related to each other in some manner |
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|
Term
| Related linked diversification strategy |
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Definition
| a diversified company with a portfolio of businesses with only a few links between them is called a mixed related and unrelated firm |
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Term
|
Definition
| 1. Product or process standardization 2. Products made with fewer features 3. Products offered at lower prices |
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Term
|
Definition
| is a corporate-level strategy in which the firm generates 95 percent or more of its sales revenue from its core business area. |
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|
Term
|
Definition
| a type of network cooperative strategy formed in mature industries in which demand is relatively constant and predictable |
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|
Term
|
Definition
| Subjective criteria intended to verify the firm is using appropriate strategies for the conditions in the external environment and the companies competitive advantages. |
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|
Term
| Strategic Entrepreneurship |
|
Definition
| occurs as firms seek opportunities in the external environment that they can exploit through innovations |
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|
Term
| Strategic business-unit form - M-form was thought to have 3 major benefits: |
|
Definition
1. It enabled corporate officers to more accurately monitor the performance of each business, which simplified the problem of control
2. It facilitated comparisons between divisions, which improved the resource allocation process
3. It stimulated managers of poorly performing divisions to look for ways of improving performance |
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Term
|
Definition
| exists when the value created by business units working together exceeds the value those same units create working independently. |
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Term
|
Definition
| arises when a firm sources inputs externally form independent suppliers as well as internally within the boundaries of the firm, or disposes of its outputs through independent outlets in addition to company owned distribution channels. |
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|
Term
| The failure of an acquisition strategy sometimes ______________ a restructuring strategy. |
|
Definition
|
|
Term
|
Definition
| international strategy through which the firm seeks to achieve both global efficiency and local responsiveness |
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|
Term
| Trends among boards of directors |
|
Definition
| (1) Increased diversity of backgrounds. (2) Use of formal processes to evaluate the board’s performance. (3) “lead director” role with strong power to setting of board’s agenda and oversight of nonmanagement board members. (4) Modifications of director's compensation. (5) Require directors to own significant stakes in the company. |
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|
Term
| Unrelated diversification strategy |
|
Definition
| A highly diversified firm, which has no well-defined relationships between its businesses. |
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|
Term
| Value-Neutral Diversification |
|
Definition
Antitrust regulation
Tax laws
Low performance
Uncertain future cash flows
Risk reduction for firm
Tangible resources
Intangible resources |
|
|
Term
| Value-Reducing Diversification |
|
Definition
Diversifying managerial employment risk
Increasing managerial compensation |
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|
Term
|
Definition
| When a company produces its own inputs or owns its own source of distribution of outputs. |
|
|
Term
| What are the 3 restructuring strategies companies use? |
|
Definition
1. Downsizing
2. Downscoping
3. Leveraged Buyouts |
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|
Term
| What are the 3 types of LBOs? |
|
Definition
1. Management Buyouts
2. Employee Buyouts
3. Whole-firm Buyouts |
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|
Term
| What are the 6 reasons why acquisitions fail? |
|
Definition
1. Integration Difficulties and an Inability to Achieve Strategy
2. Inadequate Evaluation of Target
3. Large or Extraordinary Debt
4. Too Much Diversification
5. Managers Too Focused on Acquisitions
6. Firm Becomes Too Large |
|
|
Term
| What are the 6 reasons why companies make acquisitions? |
|
Definition
1. Increase market power
2. Overcome Entry Barriers
3. Reduce Costs and Risks Associated with New Product Development
4. Increase Speed to Market
5. Increase Diversification and Reshape the Firm's Competitive Scope
6. Learn and Develop New Capabilities |
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|
Term
| What are the 7 attributes of successful acquisitions? |
|
Definition
1. Target firm's assets complement the acquired firm's assets
2. Acquisition is friendly
3. Effective due-diligence processes
4. Acquiring firm has financial slack (cash or favorable debt position)
5. Post-acquisition debt costs moderate or low
6. Post-acquisition emphasis on R&D and innovation
7. Management of both firms have experience with change and is flexible and adaptable |
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|
Term
| What are the short-term and long-term outcomes of a leveraged buyout (LBO)? |
|
Definition
| In the short-term, there are high debt costs and an emphasis on strategic controls. However, in the long-term, while emphasis on strategic controls leads to higher performance, higher debt costs leads to higher risk. |
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|
Term
| What are the short-term and long-term outcomes of downscoping? |
|
Definition
| In the short-term, debt costs are reduced and there is an emphasis on strategic controls. In the long-term, reduced debt costs and emphasis on strategic controls lead to higher performance. |
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|
Term
| What are the short-term and long-term outcomes of downsizing? |
|
Definition
| In the short-term, labor costs are reduced. However, these reduced labor costs will lead to loss of human capital and lower performance in the long-term. |
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|
Term
| What challenges do firms face when trying to create an entrepreneurial culture? |
|
Definition
| 1. Identifying the right people [intellectual talent & entrepreneurial mind set] 2. Managing the people [intellectual talent and realizing its potential] 3. Develop and expand knowledge base to encourage entrepreneurship [info systems, training programs, cross-functional teams] |
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|
Term
| What is commonly the primary goal of restructuring? And, which strategy is most closely aligned with this goal? |
|
Definition
| The primary goal of restructuring is gaining or reestablishing effective strategic control of the firm. Downscoping is most closely aligned with establishing and using strategic controls. |
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|
Term
| Why are nations interested in entrepreneurship? |
|
Definition
| 1. Promotes economic growth 2. Increases productivity 3. Creates jobs 4. Drives the economies of the nations in which it exists |
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|
Term
| Worldwide Combination Structure |
|
Definition
| organizational structure in which characteristics and mechanisms are drawn from both the worldwide geographic area structure and the worldwide product divisional structure (used to implement transnational strategy) |
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|
Term
| Worldwide Geographic Area Structure |
|
Definition
| organizational structure that emphasizes national interests and facilitates efforts to satisfy local or cultural differences (used to implement the multidomestic strategy) |
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|
Term
| Worldwide Product Divisional Structure |
|
Definition
| organizational structure in which decision-making authority is centralized in the worldwide division headquarters to coordinate and integrate decisions and actions among divisional business units (used to implement the global strategy |
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Term
|
Definition
| One firms buys a controlling, 100% interest in another firm with the intent of making it a subsidiary business within its portfolio. |
|
|
Term
|
Definition
| formalized supervisory and behaviorial rules and policies designed to ensure that decisions and actions across different units of a firm are consistent. |
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|
Term
|
Definition
| when a cooperative strategy is formed between firms that compete with each other |
|
|
Term
| competitive risks in cooperative strategies |
|
Definition
| inadequate contracts, misrepresentation of competencies, partners fail to use their complemetary resources, holding alliance partner's specific investments hostage |
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|
Term
| complementary strategic alliances |
|
Definition
| business level alliances in which firms share some of their resources and capabilities in complementary ways to develop competitive advantages |
|
|
Term
|
Definition
| a strategy in which firms work together to achieve a shared objective |
|
|
Term
| cross-border acquisitions |
|
Definition
| made between companies with headquarters in different countries. |
|
|
Term
| cross-border strategic alliance |
|
Definition
| an international cooperative strategy in which firms with headquaters in a different nations combine some of their resources and capabilities to create a competitive adavantage |
|
|
Term
| diversifying strategic alliance |
|
Definition
| a corporate level cooperative strategy in which firms share some of their resources and capablities to diversify into new product or market areas |
|
|
Term
|
Definition
| divestiture, spin-off, or some other means of eliminating businesses that are unrelated to a firm's core businesses. The goal is to reduce the firm's level of diversification. |
|
|
Term
|
Definition
| a reduction in the number of a firm's employees and, sometimes, in the number of its operating units, but it may or may not change the composition of businesses in the company's portfolio. |
|
|
Term
|
Definition
| process through which a potential acquirer evaluates a target firm for acquisition. |
|
|
Term
| equity strategic alliance |
|
Definition
| an alliance in which two or more firms own portion of the equity in the venture they have created (e.g. US and Japanese firms direct investment in China) |
|
|
Term
|
Definition
| exists when firms directly negotiate production output and pricing agreements in order to reduce competition |
|
|
Term
|
Definition
| a contractual agreement between two legally independent companies whereby the franchisor grants the right to the franchisee to sell the franchisor's product or do business under the trademarks in a given location for a specified period of time |
|
|
Term
|
Definition
| a cooperative 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 partners (the franchisees) |
|
|
Term
|
Definition
| acquisition of a company competing in the same industry in which the acquiring firm competes. |
|
|
Term
| horizontal complementary strategic alliance |
|
Definition
| an alliance in which firms share some of their resources and capabilities from the same stage of the value chain to create a competitive advantage |
|
|
Term
|
Definition
| not only unexpected, but undesired by the target firm's managers. |
|
|
Term
|
Definition
| a strategic alliance in which two or more firms create a legally independent company to share resources and capabilities to develop a competitive advantage. |
|
|
Term
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Definition
| a restructuring strategy whereby a party buys all of a firm's assets in order to take the firm private. Often, the intent of the buyout is to improve efficiency and performance to the point at which the firm can be sold successfully within five to eight years. |
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Definition
| Two firms agree to integrate their operations on a relatively co-equal basis. |
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| is a form of tacit collusion in which firms avoid competitive attacks against those rivals they meet in multiple markets |
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| network cooperative strategy |
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Definition
| a cooperative strategy in which multiple firms agree to from partnerships to achieve shared objectives (japanese network cooperative strategy is called keiretsu) |
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| nonequity strategic alliance |
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Definition
| an alliance in which two or more firms develop a contractual relationship to share some of their unique resources and capabilities to create a competitive advantage |
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| firms that facilitate or engage in taking public firms private |
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| acquisition of a firm in a highly related industry. |
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Definition
| a strategy through which a firm changes its set of businesses or financial structure. Used to improve a firm's performance by correcting for problems created by ineffective management. |
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| risk and asset managemet approaches in cooperative strategies |
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Definition
| (1) cost-minization focus (2) detailed contracts and monitoring (3) opportunity-maximization (4)developing trusting relationships |
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Definition
| a cooperative strategy in which firms combine resources and capabilities to create a competitive advantage |
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| value created by business units working together that would not have been created in those same units working independently. |
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| exists when several firms in an industry indirectly coordinate their production and pricing decisions by observing each other's competitive actions and responses |
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| Acquisition strategy where the target firm did not solicit the acquiring firm's bid. |
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| uncertainty-reducing alliances |
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Definition
| an alliance that addresses the external environment by helping firms take some of the uncertainty out of the environments they are facing |
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Definition
| refers to a firm acquiring a supplier or distributor of one or more of its goods or services. |
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| vertical complementary strategic alliance |
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Definition
| an alliance in which firms share their resources and capabilities from different stages of the value chain to create a competitive advantage |
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Term
| M-Form (multidivisional structure) |
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Definition
| consisting of several operating divisions, each representing a separate business or profit center in which the top corporate officer delegates responsibilities for the day-to-day operations and business-unit strategy to division managers |
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Term
| five components to the wheel strategy |
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Definition
oMarkets and products
oOperations and innovation
oIdentity and reputation
oOrganization and people
oStrategy and competition |
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Term
| Ireland’s takeaways from: FINDING YOUR STRATEGY IN THE NEW LANDSCAPE by Ghemawat |
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Definition
oWho and what? Of the target customer groups… the what may not be changing but the who is changing dramatically
oPredicting trends and their implications
oUse the 5 force model to reposition corporation
oChange the way we are managing the value change depending on where the value will be in the future |
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| · Two main takeaways from: FINDING YOUR STRATEGY IN THE NEW LANDSCAPE by Ghemawat |
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Definition
oFor a typical multinational the post crisis world requires a somewhat looser approach to strategy and organization than was popular just a few years ago.
oMultinationals must increase diversity in their ranks but, at the same time, build cohesive corporate cultures and tighten their talent management practices |
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Term
| According to Ghemawat's strategy wheel companies need to adjust their approach to strategy and competition by doing these 3 things: |
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Definition
1.) adapt to local differences
2.) invest more selectively
3.) watch for emerging-market competition |
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Term
| According to Ghemawat's strategy wheel companies need to adjust their strategy in relation to Markets and Products by doing these3 things: |
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Definition
1.) Focus on underserved segments everywhere
2.) Recognize price pressures
3.) Cultivate requisite variety |
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| According to Ghemawat's strategy wheel companies need to adjust their approach to operations and innovation by doing these 4 things: |
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Definition
1.) rethink the scope of offshoring
2.) simplify supply chains
3.) import process innovations from emerging economies
4.) move R&D to where researchers and market growth are |
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Term
| According to Ghemawat's strategy wheel companies need to adjust their approach to the organization and people by doing these 4 things: |
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Definition
1.) Re-create country manager functions
2.) relocate key functions
3.) develop a globally representative talent pool
4.) exploit communication technologies |
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Term
| According to Ghemawat's strategy wheel companies need to adjust their approach to identity and reputation by doing these 3 things: |
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Definition
1)build a strong corporate identity
2)emphasize corporate citizenship
3)restore the reputation of business in general |
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Definition
1.)Product in single market
2.)establish units in other locations
3.)verticle integration
4.)diversification |
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Term
| model of professional directorship in corporate boards |
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Definition
1.)the corporate board should be reduced to 7 members
2.)most board directors should have industry expertise
3.)require directors to devote sufficient time to their corporate board duties |
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