4219 quizzes

To gain economic incentives offered by governments of developing countries wishing to expand industry and job creation

whether to offer a mostly standardized product worldwide or to customize the offerings in each country.

political risks stem from instability or weakness in national governments while economic risks stem from the stability of a country's monetary system, economic and regulatory policies.

there is no international or global market, just a collection of mostly self-contained country markets.

In global competition, there's more cross-country variation in industry conditions and competitive forces than there is in industries where multidomestic competition prevails.

can be an excellent initial strategy to test the international waters and learn if attractive market positions can be established in foreign markets.

having franchisees bear most of the costs and risks of establishing foreign.

Making it harder to pursue a multidomestic strategy as compared to a global strategy

dispersing its activities among various countries in a manner that lowers costs or else helps achieve greater product differentiation.

the "think global, act local" approach gives local managers more latitude to make minor strategy variations where necessary to better satisfy local buyers and to better match local market conditions.

evaluating whether the diversification move will produce a 1 + 1 = 3 outcome such that the company's different businesses perform better together than apart and the whole ends up being greater than the sum of the parts.

the pre-acquisition market value of the target company.

Related diversification offers more competitive advantage potential than does unrelated diversification.

identifying an attractive industry whose value chain has good strategic fit with one or more of the firm's present businesses.

Strategic fit is primarily a byproduct of unrelated diversification and exists when the value chain activities of unrelated businesses possess economies of scope and good financial fit.

each business is on its own in trying to build a competitive edge and the consolidated performance of the businesses is likely to be no better than the sum of what the individual businesses could achieve if they were independent.

which industries appear to be the best and worst ones to be in and the attractiveness of all the industries as a group from the standpoint of the company's long-term performance.

calculated by dividing a business's percentage share of total industry sales volume by the percentage share held by its largest rival—it is a better indicator of a business's competitive strength than is a simple percentage measure of market share.

selecting a set of competitive strength measures, weighting the importance of each measure, rating each business on each strength measure, multiplying the strength ratings by the assigned weight to obtain a weighted rating, adding the weighted ratings for each business unit to obtain an overall competitive strength score, and using the overall competitive strength scores to evaluate the competitive strength of all the businesses, both individually and as a group.

whether the corporate parent has sufficient cash to fund the needs of its individual businesses and pay dividends to shareholders without having to borrow money.

the application of general ethical principles and standards to the actions and decisions of companies and the behavior of company personnel.

the school of ethical universalism.

many basic moral standards travel well across cultures and countries and really do not vary significantly according to local cultural beliefs, social mores, religious convictions, and/or the circumstances of the situation.

Integrated social contracts theory rejects the slippery slope of ethical relativism and embraces ethical universalism.

accommodates the best parts of ethical universalism and ethical relativism.

the extent to which it is embraced in crafting strategy and in the day-to-day operations of the business.

Intense competitive pressures

emphasizes that pursuing unethical strategies not only damages a company's reputation but can also have costly consequences that are wide ranging.

Actions to benefit shareholders (such as raising the dividend or boost the stock price).

A company is not demonstrating an adequate degree of social responsibility or endeavoring to be a model corporate citizen unless it spends 5% (or more) of pretax profits on social responsibility initiatives.

the demanding people-management skills required, the resistance to change that has to be overcome, and the perseverance necessary to get a variety of initiatives launched and kept moving along.

top-level managers still have to rely on the active support and cooperation of middle and lower-level managers in pushing needed changes in functional areas and operating units.

Selecting and retaining capable employees, thereby enhancing the company's intellectual capital resources

staffing the organization, building core competencies and competitive capabilities, and structuring the organization and work effort.

Recruiting and retaining capable employees is usually much more important to good strategy execution and the achievement of true operating excellence than is assembling a capable top management team.

Core competencies generally grow out of company efforts to master a strategy-critical technology or to invent and patent a valuable technology.

out execute them (beat them by performing certain value chain activities in superior fashion).

Promoting quick establishment of a total quality culture

decision-making authority should be pushed down to the lowest organizational level capable of making timely, informed, competent decisions.

reducing the layers of management and encouraging lower-level managers and rank-and-file employees to exercise initiative and act responsibly.

units important in the prior strategy but having a lesser role in the new strategy may need downsizing while units and activities that now have a bigger and more critical strategic role may need increases in their budgets.

to prescribe enough policies to give organizational members clear direction in implementing strategy and to place desirable boundaries on their actions, then empower them to act within these boundaries however they think makes sense.

is a technique for performing an activity or business process that at least one company has demonstrated works particularly.

Adoption of standard industry techniques

is a philosophy of managing a set of business practices that emphasizes continuous improvement in all phases of operations.

an improvement system for existing processes falling below specification and needing incremental improvement.

While Six Sigma programs often improve the efficiency of numerous operating processes, there is evidence that the approach can stifle innovative activities.

such support systems not only enable better strategy execution but also strengthen organizational capabilities (perhaps enough to provide a competitive edge over rivals).

should focus on incorporating more positive than negative motivational incentives.

Ways must be found to reward deserving non-performers who, for some reason, do not fare well under the incentive system.

Its strategic vision, strategic intent, and strategy.

the stated core values and ethical principles are the cornerstones of the corporate culture.

the stories that get told over and over again to illustrate to newcomers the importance of certain values.

A company's culture, once established, tends to remain stable and entrenched over time.

Centralized decision-making, strict enforcement of company policies, and a strong commitment to being the market share leader

Weak cultures provide little assistance in executing strategy because there are no traditions, values, or behavioral norms that management can use as levers to mobilize commitment to executing the chosen strategy.

A tight strategy-culture alignment facilitates building core competencies and distinctive competencies that lead to low operating costs and a cost-based competitive advantage.

a "can-do" spirit, pride in doing things right, no-excuses accountability, and a pervasive results-oriented work climate where people go the extra mile to meet or beat stretch objectives.

willingness on the part of organizational members to accept change and take on the challenge of introducing and executing new strategies.

a politicized internal environment, hostility to change and an aversion to looking outside the company for best practices, new managerial approaches, and innovative ideas.