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TEST 2 REVIEW - TEST 2 REVIEW 1 What do directional...

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TEST 2 REVIEW 1. What do directional strategies deal with? P.206 A corporation’s directional strategy is composed of three general orientations (sometimes called grand strategies): Growth strategies expand the company’s activities. Stability strategies make no change to the company’s current activities. Retrenchment strategies reduce the company’s level of activities. 2. Technological leader vs. technological follower? P.241 Technological leader – A company that pioneers an innovation. Technological follower – A company that imitates the products of its competitors. 3. What are the four generic strategies? P.186 Competitive Advantage Competitive Scope Lower Cost Differentiation Broad Target Cost Leadership Differentiation Narrow Target Cost Focus Differentiation Focus When the lower-cost and differentiation strategies have a broad mass-market target, they are simply called cost leadership and differentiation . When they are focused on a market niche (narrow target), however, they are called cost focus and differentiation focus . 4. What is conglomerate diversification? P.215 Conglomerate diversification – A diversification group growth strategy that involves a move into another industry to provide products unrelated to its current products. 5. What is a recent trend in Information System strategy? P.247
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6. Fast-cycle vs. slow-cycle resources? P.141-142 Slow cycle resources are sustainable because they are shielded by patents, geography, strong brand names, or tactic knowledge. These resources and capabilities are distinctive competencies because they provide a sustainable competitive advantage. Gillette’s razor technology is a good example of a product built around slow-cycle resources. The other extreme includes fast-cycle resources , which face the highest imitation pressures because they are based on a concept or technology that can be easily duplicated, such as Sony’s Walkman. To the extent that a company has fast-cycle resources, the primary way it can compete successfully is through increased speed from lab to marketplace. Otherwise, it has no real sustainable competitive advantage. 7. What activities are involved in the R&D strategy? P.241 R&D strategy deals with product and process innovation and improvement. It also deals with the appropriate mix of different types of R&D (basic, product, or process) and with the question of how new technology should be accessed – through internal development, external acquisition, or strategic alliances. 8. What is the product life cycle? P.152 Product life cycle – A graph showing time plotted against sales of a product as it moves from introduction through growth and maturity to decline. 9. Attributes of corporate culture? P.149 Corporate culture has two distinct attributes, intensity and integration.
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