Principles of Management - Chapter 6
Acquisition - correct answer-the purchase of a company by another company
Analyzers - correct answer-firms that adopt an adaptive strategy that seeks to minimize risk
and maximize profits by following or imitating the proven successes of prospectors
Attack - correct answer-a competitive move designed to reduce a rival's market share or
profits
Bargaining power of buyers - correct answer-a measure of the influence that customers have
on a firm's prices
Bargaining power of supplies - correct answer-a measure of the influence that suppliers of
parts, materials, and services to firms in an industry have on the prices of these inputs
BCG matrix - correct answer-a portfolio strategy, developed by the Boston Consulting Group,
that categorizes a corporation's businesses by growth rate and relative market share and
helps managers decide how to invest corporate funds
Cash cow - correct answer-a company with a large share of a slow-growing market
Character of the rivalry - correct answer-a measure of the intensity of competitive behavior
between companies in an industry
Competitive advantage - correct answer-providing greater value for customers than
competitors can
Competitive inertia - correct answer-a reluctance to change strategies or competitive
practices that have been successful in the past
Core capabilities - correct answer-the internal decision-making routines, problem-solving
processes, and organizational cultures that determine how efficiently inputs can be turned
into outputs
Core firms - correct answer-the central companies in a strategic group
Corporate-level strategy - correct answer-the overall organizational strategy that addresses
the question "What business or businesses are we in or should we be in?"
Cost leadership - correct answer-the positioning strategy of producing a product or service of
acceptable quality at consistently lower production costs than competitors can, so that the
firm can offer the product or service at the lowest price in the industry
Acquisition - correct answer-the purchase of a company by another company
Analyzers - correct answer-firms that adopt an adaptive strategy that seeks to minimize risk
and maximize profits by following or imitating the proven successes of prospectors
Attack - correct answer-a competitive move designed to reduce a rival's market share or
profits
Bargaining power of buyers - correct answer-a measure of the influence that customers have
on a firm's prices
Bargaining power of supplies - correct answer-a measure of the influence that suppliers of
parts, materials, and services to firms in an industry have on the prices of these inputs
BCG matrix - correct answer-a portfolio strategy, developed by the Boston Consulting Group,
that categorizes a corporation's businesses by growth rate and relative market share and
helps managers decide how to invest corporate funds
Cash cow - correct answer-a company with a large share of a slow-growing market
Character of the rivalry - correct answer-a measure of the intensity of competitive behavior
between companies in an industry
Competitive advantage - correct answer-providing greater value for customers than
competitors can
Competitive inertia - correct answer-a reluctance to change strategies or competitive
practices that have been successful in the past
Core capabilities - correct answer-the internal decision-making routines, problem-solving
processes, and organizational cultures that determine how efficiently inputs can be turned
into outputs
Core firms - correct answer-the central companies in a strategic group
Corporate-level strategy - correct answer-the overall organizational strategy that addresses
the question "What business or businesses are we in or should we be in?"
Cost leadership - correct answer-the positioning strategy of producing a product or service of
acceptable quality at consistently lower production costs than competitors can, so that the
firm can offer the product or service at the lowest price in the industry
