Strategic planning managment

Competitive advantage etc.

Competitive advantage etc.


Set of flashcards Details

Flashcards 98
Language English
Category Micro-Economics
Level University
Created / Updated 05.01.2018 / 12.01.2018
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Which are the three points to creat a keystone advantage

Productivity

Robustness

niche creation

What is productivity? 

  • The business equivalent is a network’s ability to consistently transform technology and other raw materials of innovation into lower costs and new products.
  • There are a number of ways to measure this: A relatively simple one is return on invested capital.

What is robustness? 

  • To provide durable benefits to the species that depend on it, a biological ecosystem must persist in the face of environmental changes.
  • Similarly, a business ecosystem should be capable of surviving disruptions such as unforeseen technological change.
  • The benefits are obvious: A company that is part of a robust ecosystem enjoys relative predictability, and the relationships among members of the ecosystem are buffered against external shocks.
  • Perhaps the simplest, if crude, measure of robustness is the survival rates of ecosystem members, either over time or relative to comparable ecosystems. 

WHat is niche creation?

  • There is something about the idea of diversity, in business as well as in biology, that suggests an ability to absorb external shocks and the potential for productive innovation.
  • The best measure of this in a business context is the ecosystem’s capacity to increase meaningful diversity through the creation of valuable new functions, or niches.
  • One way to assess niche creation is to look at the extent to which emerging technologies are actually being applied in the form of a variety of new businesses and products. 

What is a keystone advantage? 

  • A keystone organization is one that aims to enhance the overall health of the network by creating value and sharing value.
  • “Keystones can create value and increase ecosystem productivity by simplifying the complex task of connecting network participants to one another or by making the creation of new products by third parties more efficient”.
  • They can also share value, increase robustness and influence niche creation by sharing innovative technologies. 

What is the danger of domination?

  • An ecosystem dominator is pretty much the opposite of a keystone organization. Instead of adding value, a dominator may drain the system (value dominator) or even take over the system (physical dominator) by exploiting a critical position.
  • A value dominator indirectly affects the system by extracting as much of the value the other members of the ecosystem have created possibly not leaving enough value to sustain the system.
  • On the other hand, a physical dominator directly affects the system by aiming “to integrate vertically or horizontally to own and manage a large proportion of a network”

WHat is a niche player? 

  • A niche player aims to specialize and differentiate itself from other members in the system. “When they are allowed to thrive, niche players represent the bulk of the ecosystem and are responsible for most of the value creation and innovation”.
  • It is important to note that roles in a network are dynamic. For instance, keystones may become dominators and niche players may eventually become keystones.

WHat is a commodity? 

Ecosystem strategy not relevant

What does the basic driver of CSR consist of?

  1. Values – of doing good to the society, nature and the environment in general
  2. Strategy – of being more responsible towards the society and the environment and using that as a strategy towards growth and profits
  3. Public pressure – consumers, media, govt., overseeing bodies and international organizations are constantly pressurizing companies to be more empathetic to the society and environment and more so urging them to do the right things.

WHat is the purpose of CSR and what is the shared value? 

Purpose of CSR: competition and value creation, climate change awareness, glamour, Response to loss of reputation, defensive strategy

Shared value: The concept of shared value can be defined as policies and operating practices that enhance the competitiveness of a company while simultaneously advancing the economic and social conditions in the communities in which it operates

What is a corporate strategy and what a comepttiive strategy? 

Corporate strategy Where to compete

Competitive strategy How to compete

WHich three things consist by a corporate strategy?

Grwoth

Commitment

Scope

Which three things belong to scope? 

  • Vertical scope
  • Product scope (Innovation)
  • Geographical scope (Internationalization) 

Which points belong to commtiment? 

• Core business

• Subsidiary

• Joint venture

• Alliance

• Turnkey project

• Franchising

• Licensing

• Direct exports

• Indirect exports

WHich points belong to growth

  • Strategies for growth (Mergers and acquisitions, costly and fast. Organic grow -> cheap but slow)
  • Strategies for profiting from growth (Increase productivity, Increase scope: Vertical scope, Product scope through innovation, geographical scope through internationalization)

What are the 6 paths analysis? 

1. Industry

2. Strategic group

3. Buyer group

4. Scope of offerings

5. Functional – emotional

6. Time

what is the red ocean strategy? 

Competing in our industry --> comparaitve analysie --> incremental improvements for clients --> differentiation or low cost

What is the blue ocean strategy? 

creating new market space --> value innovation --> radical improvements for clients --> Differentiation and low cost