Business Management and External Analysis

It improves quality of life by enhancing standards of living and promoting sustainability.

To detect threats and opportunities from the environment.

It refers to all uncontrollable factors outside the company that affect its strategies and success.

<p>PESTEL analysis and industrial districts.</p> Signup and view all the answers

<p>Define geographical limits, identify key variables, and develop a strategic profile.</p> Signup and view all the answers

<p>The impact of environmental factors can vary due to differing industry contexts.</p> Signup and view all the answers

<p>They provide insights on how groups of similar firms benefit from geographic proximity.</p> Signup and view all the answers

<p>They provide environmental benefits by improving community engagement and well-being.</p> Signup and view all the answers

<p>Centralized production ensures efficiency and consistency in product quality.</p> Signup and view all the answers

<p>Trade barriers and cultural barriers.</p> Signup and view all the answers

<p>A license is an arrangement where the owner of intellectual property grants rights to another firm for a specified period in exchange for royalties.</p> Signup and view all the answers

<p>Advantage: Avoids trade barriers. Disadvantage: Loss of control over the firm's image.</p> Signup and view all the answers

<p>Foreign direct investment involves investing directly in facilities to produce or market a product in a foreign country.</p> Signup and view all the answers

<p>Shared risk and cost, and gaining local knowledge.</p> Signup and view all the answers

<p>High investment, which increases risk and costs.</p> Signup and view all the answers

<p>Licensing allows a company to enter new markets with lower risk and investment requirements.</p> Signup and view all the answers

<p>It is important to adapt to complex and changing environments for survival and prosperity.</p> Signup and view all the answers

<p>Strategies can be found in managers' speeches, written documents, and corporate communications like annual reports.</p> Signup and view all the answers

<p>Strategy refers to the means by which organizations achieve long-term goals and allocate resources.</p> Signup and view all the answers

<p>Chess reflects strategic concepts such as assessing current positions and anticipating rival movements.</p> Signup and view all the answers

<p>An SBU is a self-contained set of activities that can formulate its own competitive strategy.</p> Signup and view all the answers

<p>One function is to ensure interaction and coherence among production, sales, marketing, and finance.</p> Signup and view all the answers

<p>The strategic management process typically involves developing and implementing strategies to achieve goals.</p> Signup and view all the answers

<p>Defining SBUs is necessary due to the heterogeneity of different businesses and their competitive environments.</p> Signup and view all the answers

<p>Imitation barriers are obstacles, such as patents, that prevent competitors from replicating a firm's competitive advantage.</p> Signup and view all the answers

<p>Economies of scale and input cost advantages are two sources of cost competitive advantage mentioned.</p> Signup and view all the answers

<p>The learning effect leads to lower labor costs per unit as firms become more efficient with time and experience.</p> Signup and view all the answers

<p>Differentiation competitive advantage occurs when a firm offers products perceived as unique, allowing it to charge higher prices. An example is an innovative smartphone with advanced features.</p> Signup and view all the answers

<p>Firm location can lead to a cost competitive advantage if a company is close to its suppliers, reducing transportation and logistics costs.</p> Signup and view all the answers

<p>Product performance is one potential source of differentiation related to product characteristics.</p> Signup and view all the answers

<p>Cooperation agreements, such as just-in-time collaboration with suppliers, help reduce storage costs by optimizing inventory management.</p> Signup and view all the answers

<p>Industry dynamism influences how quickly firms must adapt their resources to stay competitive in rapidly changing markets.</p> Signup and view all the answers

<p>A joint venture is a business arrangement where two firms invest together to create a new venture.</p> Signup and view all the answers

<p>Internal factors include cost reduction, the search for specialized resources, minimum efficient size, and risk reduction.</p> Signup and view all the answers

<p>A multidomestic industry features independent competition in each country, with competitive advantages that are specific to each nation.</p> Signup and view all the answers

<p>Global industries view the world as a single market, relying on competitive positions interlinked across countries, unlike multidomestic industries, which operate independently in each country.</p> Signup and view all the answers

<p>External demand drives firms to internationalize by encouraging expansion to meet customer needs in foreign markets.</p> Signup and view all the answers

<p>Industry life cycles influence internationalization strategies, as firms adapt to phases of growth and maturity in global markets.</p> Signup and view all the answers

<p>The minimum efficient size refers to the scale at which a firm can produce at lower average costs, prompting sales in foreign locations to meet excess demand.</p> Signup and view all the answers

<p>Potentially global industries are those in which firms might compete across various countries but have not fully realized interconnected competitive positions.</p> Signup and view all the answers

<p>Key macroeconomic factors include the country's economic stability, inflation rates, and overall market demand.</p> Signup and view all the answers

<p>Political risk can involve factors such as the stability of the government, risk of civil unrest, and levels of corruption.</p> Signup and view all the answers

<p>A firm might choose exporting because it involves lower investment and risk while allowing access to international markets.</p> Signup and view all the answers

<p>A major disadvantage of exporting is that it tends to be less profitable than foreign direct investment due to limited control over market operations.</p> Signup and view all the answers

<p>Cultural distance can create challenges in communication, management practices, and customer preferences, making operations more difficult.</p> Signup and view all the answers

<p>A PESTLE analysis helps firms assess political, economic, social, technological, legal, and environmental factors that impact market viability.</p> Signup and view all the answers

<p>Starting with contractual agreements allows a company to limit investment risk while gaining experience and market knowledge.</p> Signup and view all the answers

<p>Small firms benefit from reduced capital investment and the ability to test international markets without significant overhead.</p> Signup and view all the answers