Study sets, textbooks, questions
Upgrade to remove ads
Bus Policy and Strategy Test
Terms in this set (88)
What is analytical thinking?
Zoom in on each part
Explain "how" things work
What is systemic thinking?
Explain "why" things work
Which way of thinking is best?
Neither, we need both
What is the problem w/ analytical thinking?
Isolating things causes the system to lose its essential properties
Why did we read the Science article?
Taking a different perspective
What was the point of the Science article?
Instead of arguing over who's right (decrease intake or increase tech) we need to work together
What is root causes analysis?
Finding the real cause of a problem
We learn better when we have an _ problem to solve
What did Robin Hood need to do?
A SWOT analysis
Considering multiple criteria will do what 2 things?
Make managers' jobs more difficult
Help them make better decisions
What are mental models?
Cognitive frameworks, beliefs, and emotions that interact w/ incoming stimuli to limit, focus, and interpret our experiences
What are social constructions?
Creating and using dominant logics and mental models
What are dominant logics?
The way managers conceptualize business and make critical resource allocation decisions
Belief systems about cause and effect relationships
Where do social constructs come from?
Socialization as a child
According to the dominant logics article, we see the world as _
What are the three environments surrounding a firm, in order of how much the firm can affect them?
What are the six elements of the remote environment?
Systemic thinking is _ and analytical thinking is _
An _ system interacts with the environment
What is the only way firms can affect the remote environment?
Which environment is the most important for strategy class?
What is Gause's principle?
(Origin of Strategy)
Competitors that make their living in identical ways in the same area cannot coexist
What is strategy?
Search for sustainable competitive advantage
Gause's principle provides for thousands of degrees of _ in an org that can come from anywhere
How is strategy like evolution? Unlike?
Both systems of change
Evolution is random and long term, strategy is intentional and over a relatively short term
What are the two main forces in Hart's Sustainable Value Portfolio?
Bottom of pyramid
What is Hart's sustainable value strategy for the 1st quadrant? (New Skills/Repositioning)
Clean Tech for the future
What is Hart's sustainable value strategy for the 2nd quadrant? (Cost and Risk Reduction)
What is Hart's sustainable value strategy for the 3rd quadrant? (Reputation and Legitimacy)
Product stewardship- shareholder views
What is Hart's sustainable value strategy for the 4th quadrant? (Growth Path Trajectory)
Base of the pyramid
The top half of the SV model is focused on what? Bottom half?
The left half of the SV model is focused on what? Right half?
Where are most companies? What is the ultimate goal? Where should you be to succeed?
What are Porter's five forces?
Threat of new entrants
Bargaining power of suppliers
Threat of substitutes
Bargaining power of customers
Rivalry among existing competitors
What are the 7 major barriers to entry?
Supply-side economies of scale
Demand-side benefits of scale
Customer switching costs
Incumbency advantages independent of size
Unequal access to distrib. channels
Restrictive gov policy
ALSO reaction of existing competitors
What are economies of scale?
Spreading fixed costs over a large amount of output
What are the 3 types of industry structure, in order of most to least suppliers, % of market share, and barriers to entry?
What is the industry life cycle? and how long is it normally?
Managers often wrongly focus on _ and forget about those outside their industry
Importance depends on effect on _
Complementary products (worth more together)
Implications for Strategy
Positioning the co (find your weakest forces and build a defense)
Exploit industry change
Shape industry structure (influence factors)
What are the 3 task environment dimensions? Are they good or bad?
Complexity (good if your org is good)
Capacity to support growth
Eg. resources, regulations, EEs
Amount of unexpected change in industry
Amount of steps required
Eg. rocket science
Porter's five forces and Task Environment Dimensions are ways of _
Understanding the industry
Why do we want to understand the industry?
To decide if we want to be in it
How can so many drug cartels exist?
Violence and hierarchy
Protecting from violence, morality
What are some questions to ask to determine industry attractiveness?
How fast is the industry growing?
Do top players maintain their positions and market share over time?
Does the top player or players enjoy
high return on capital consistently?
Are customers locked-in by loyalty, network effects, high switching costs or search costs for
Are top players protected from competition
by economies of scale or experience-curves in
R&D, manufacturing and distribution?
Do top players constantly invest a lot in R&D
and marketing to stay ahead?
Are products differentiated and buying decisions
based on value or perceived value rather than price?
What is the degree of fragmentation in
Does the industry experience excess capacity from time to time because of large capacity
expansions or high barriers to exit?
Are players under intense pressure to cover high
Are there attractive alternatives or substitutes that
perform the same function as the product offered by the players?
Are customers large in size and
Are suppliers few in number and powerful?
Is this industry attractive for long-term
The operating environ. is the _ environ. (eg. city gov)
Key Success Factors are what is necessary for _
What are Porter's 3 Generic Strategies?
Low cost leadership (cost of production)
What does Porter warn against?
Getting stuck in the middle- not focusing on just one strategy
What is the main problem facing managers who want to expand into International Markets?
(Distance Still Matters)
Using wrong tools- the ones that work in our country
When moving into an international market, it is important to consider the _ and the _
What is the CAGE framework?
Examples of cultural distance
Absence of colonial ties
Lack of sea or river access
Differences in climates
Differences in consumer incomes
Distribution of wealth
What is the Innovator's Paradox?
"To imagine the future, we tend to rely on our past experiences"
Assume circumstances will continue
Leading companies fail because...
They get too comfortable and stay too close to their customers (internal focus)
Allow start ups to lead the way
What is disruptive technology?
A different package not currently valued that is able to invade what is valued
What is VUCA?
nature, speed, volume, magnitude of change
Lack of predictability
Numerous and difficult to understand
Lack of clarity about meaning
What does Hart say is the major problem facing businesses today?
Help the BoP meet minimum standards of living (moral) w/o hurting the environ. any further (tech)
What happened to the economy after the Industrial Revolution (Great Transformation)?
Economy is now separate from society
What does Hart say we need to do in order to serve the BoP?
Re-embed economy into society
What did the water company do differently that allowed them to succeed in Chapala, MX?
Align with the Catholic Church (center of society)
Met w/ local people
What are the 3 obstacles to re-embedding?
Psychological (lack knowledge/experience of impoverished communities)
Organizational (treat BoP initiatives same as other products)
Strategic (need to protect BoP team but give them room to make own strategy)
In order to help the BoP, we need to understand their _ and how to _ by actually interacting with them
What were some of the ways the Swiss company reduced costs?
No volume discounts
What were the 2 things the Swiss company does w/ CO2?
Sell it to Coca-Cola and greenhouses
Bury it (complete cycle)
What is the American company doing w/ CO2?
using it to make synthetic fuel
One interesting thing about the CO2 market is that the _ has about 4x more power
What was the main point of the Swiss article?
The way we think
What types of skills did the Ted Talk guy say we needed to develop?
Those that can't be automated
Eg. creativity, problem solving
According to the Ted Talk guy, people have a hard time doing what?
Being aware of what future consequences could be
Expanding the total pool of economic and social value
What do companies feel pressured to do in order to keep their rep?
What caused the problem requiring us to use shared value?
Vision too narrow
how do we get shared value?
Sets with similar terms
Strategic Management Chapter 2
Management 371 Johnson Class 3
WPC 480 Quizzes
Other sets by this creator
Comp Final (also last quizlet ever???)
Compensation Test 1
Developing EEs: Identifying and Developing Leaders
Developing EEs: Conflict MGMT