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FINAL STRGY (Subject) / Final (Lesson)
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- XXXX When all the businesses in which a firm operates share a significant number of inputs, production technologies, distribution channels, similar customers, etc Related-Constrained Strategy –
- XXXX – When the different businesses that a single firm pursues are linked on only a couple of dimensions, or when different sets of businesses are linked along very different dimensions. Related-Linked Strategy
- XXXX – When less than 70% of a firm’s revenues are generated in a single-product market, and when a firm’s businesses share few, if any, common attributes (e.g. Firms pursue numerous different businesses and no linkages among them). . Unrelated Corporate Diversification
- XXXXX focuses on gaining advantages by reducing its costs to below those of all its competitors (e.g. Wal-Mart). A Cost Leadership Business Strategy
- XXX may allow a firm to have enough sales to justify investing in additional capacity to capture economies of scale. International expansion
- XXXXX: A business strategy whereby firms attempt to gain a competitive advantage by increasing the “perceived” value of their products or services (e.g. Apple, Harley-Davidson, Victoria’s Secret). Product Differentiation
- . Although firms often alter the objective properties of their products or services, the existence of product differentiation, in the end, is always a matter of XXX customer perception”.
- XXXX Cooperating firms agree to work together to develop, manufacture, or sell products or services, but they do not take equity positions in each other or form an independent organizational unit to manage their cooperative efforts. Nonequity Alliance –
- XXXXX Cooperating firms supplement contracts with equity holdings in alliance partners. Equity Alliance –
- XXXX Cooperating firms create a legally independent firm in which they invest and from which they share any profits that are created. Joint Venture –
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- XXXX A firm purchases a second firm: Acquisition –
- XXXX The assets of two “similar-sized” firms are “combined”: Mergers can be accomplished in many of the same ways as acquisitions, . Mergers –
- XXX is the amount of cash a firm has to invest after all positive net present-value investments in its ongoing businesses have been funded Free cash flow
- XXXXX relate to parties in an agency relationship differ in their decision-making objectives Agency problems
- XXXXX relate to parties in an agency relationship differ in their decision-making objectives Agency problems
- XXXX is the unrealistic belief held by managers in bidding firms that they can manage the assets of a target firm more efficiently than the target firm’s current management. → This notion can lead bidding firms to engage in acquisition strategies even though there may not be positive economic profits from doing so. Managerial hubris
- XXXXX is based on differentiating products and services on a country-by-country or regional basis to meet differing buyer needs and to address divergent local market conditions, A multi-domestic strategy
- XXXX takes a standardized, globally integrated approach to producing, packaging, selling, and delivering the company’s products and services worldwide A global strategy
- XXXXX (i.e. glocalization) incorporates elements of both a globalized and a localized approach to strategy making (when there are relatively high needs for local responsiveness as well as appreciable benefits to be realized from standardization). A transnational strategy
- XXXXX is based on differentiating products and services on a country-by-country or regional basis to meet differing buyer needs and to address divergent local market conditions, A multi-domestic strategy