Business

Suggested Study Topics for Final Quiz

BUSB – 481

Strategic Management

Chapter 6:

• Value Chain—that set of activities that must be accomplished to bring a product or service from raw materials to the point that it can be sold to a final customer.

• Vertical Integration—the number of steps in the value chain that a firm accomplishes within its boundaries

• Opportunism—a firm is unfairly exploited in an exchange

• Flexibility—how costly it is for a firm to alter its strategic and organizational decisions.

Chapter 7:

• Corporate Diversification Strategy—when a firm operates in multiple industries or markets simultaneously.

• Product Diversification—a firm operates in multiple industries simultaneously.

• Economic Value in Corporate Diversification—the difference between the perceived benefits gained by a customer who purchases a firms products or services and the full economic cost of these products or services.

• Core Competencies—the collective learning in an organization, especially how to coordinate diverse production skills and integrate multiple streams of technologies.

• Escalation of Commitment—an increased commitment by managers to an incorrect course of action, even as its limitations become manifest.

• Tacit Collusion—firms coordinate their production and pricing decisions not by communicating directly with other firms, but by using signals to inform their intent.

Chapter 8:

• M-form or Multidivisional Organizational Structure—an organizational structure for implementing a corporate diversification strategy whereby each business a firm engages in is managed through a separate profit and loss division.

• Three Critical Control Processes for Firms Implementing Diversification Strategies.— evaluating the performance of divisions, allocating capitol across divisions, transferring intermediate products between divisions.

• Roles of the Chairman of the Board, Chief Executive...