BUSI 4609 Study Guide - Spring 2018, Comprehensive Midterm Notes - Strategic Management, Market Power, International
12 Oct 2018
School
Department
Course
Professor
BUSI 4609
MIDTERM EXAM
STUDY GUIDE
Fall 2018
Lecture 1
1. Factors affect firms longevity
a. Hyper competition
i. Rapid escalation of competition
ii. Blur industry boundary
iii. CA not effective
iv. Solution
▪ Use price quality positioning to build presence
▪ Create new know how
▪ Protect establish market
b. Global marketplace
i. Resource move freely across geographic borders
ii. Higher economic interdependence
iii. Higher opportunity to compete
c. Globalization
i. Continuous improvement and higher standard for
productivity
ii. Customer: higher quality, lower price
iii. Competition: lower product development time
iv. Learn domestic and global market and modify
v. Need success in domestic first
d. Technology change
i. Higher rate of technology diffusion and emerge disruptive
technology
ii. Information age
iii. Higher knowledge intensity
▪ Learn to capture intelligence
▪ Transform intelligence knowledge
▪ Use in organizational learning
▪ Diffuse into organizational learning: no insight
iv. Perpectual innovation: rapid and consistent new
technology replace older ones
v. Strategic flexibility
▪ Cope with uncertainty and risk
▪ Overcome organizational inertia first
▪ Develop capacity of continuous learning and apply
new skills to firms’ CA
vi. Competitiveness success factor
▪ Market or customer need oriented
▪ Have entrepreneurial opportunistic mindset
▪ Make effective use of valuable competences
▪ Offer innovate products
find more resources at oneclass.com
find more resources at oneclass.com
2. Predict outcome
a. Profit pool = earn profit in industry along value chain
b. Locate most promising area of industry value chain
c. Step
i. Define pool boundary
ii. Estimate overall size
iii. Estimate size of value chain activity
iv. Reconcile calculation
3. Definition
a. Strategic competitiveness: firm successfully formulate and
implement value creating strategy
b. Sustainable competitive advantage: no duplicate strategy
c. Strategic management process: set of commitment
/decision/action required to achieve competitiveness and earn
AAR
d. Business strategy: exploit competitive advantage over rival
e. Corporate strategy: determine business company intend to
complete
f. Liability of foreignness- overall risk of participating outside
domestic country
4. Competitive profile matrix
a. Identify major Strength and weakness
b. Reason
i. Reveal strength and weakness
ii. Indicate at CA
iii. Identify possible attack
iv. Identify defensive attack
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Low: static pressure of competition, low emphasize on individual difference, high emphasize in industry. Lecture 5 competitive scope: broad: compete in many customer segment, narrow: compete in 1 customer segment. Instability: introduce innovation, product advertising, foreign competition begin production, production abroad, standard product (cid:494) Influence vs risk and return: product, supplier, customer, host community, unions, profit margin: lowest acceptable return to capital market shareholder, organizational, education/ skill, cultural or ethical work, global or goal standard. Chapter 2: external environment: external audit: scan. Monitor/ forecast and interpret sweep of social/ political/ economic/ global. Core competency: resource and capabilities that are source of ca. Strategy: integrated and coordinated set of action taken to exploit core competency and gain ca. Strategic action: involve commitment resource and hard to implement. Competitive dynamic: total action + response by all firm in 1 market. Competitive rivalry: high during recession, firm are mutually interdependent, model of competitive rivalry competitor analysis comeptitive deiver of behavior.
