ERM in Global Business - SBRM6070 MSc.

An aging population will likely increase demand for geriatric care, specialized medical services, and long-term care facilities, potentially driving up healthcare costs and creating workforce shortages within the industry.

Stimulus packages with direct payments could boost car sales in the short term. However, increased taxes to fund these packages could reduce disposable income and dampen long-term demand.

Stricter waste disposal laws would likely increase operational costs due to the need for new equipment, processes, and compliance measures. This could decrease profitability unless the company can innovate to reduce waste or pass costs to consumers.

<p>A strong domestic currency could make the company's products more expensive in foreign markets, reducing export sales. A weaker domestic currency could make their products cheaper and increase export sales, but could also increase the cost of imported components.</p> Signup and view all the answers

<p>Increased emphasis on work-life balance could lead to a demand for more flexible work arrangements in the restaurant industry, potentially requiring restaurants to offer part-time positions, better benefits, or more predictable schedules to attract and retain employees. It could equally impact operating hours or service models.</p> Signup and view all the answers

<p>A clear mission provides a common purpose and shared expectations, uniting everyone towards a single goal; this alignment reduces conflicting efforts and promotes coordinated teamwork.</p> Signup and view all the answers

<p>This statement doesn't identify the company’s target customers; it lacks the 'customers' component.</p> Signup and view all the answers

<p>It communicates the organization's values, goals, and commitment, assuring stakeholders of its purpose and reliability.</p> Signup and view all the answers

<p>A broad scope allows flexibility and adaptability as the company evolves, while specific objectives can quickly become outdated.</p> Signup and view all the answers

<p>The mission statement provides the foundation demonstrating the company's purpose whereas the customer value proposition articulates the benefits that the company's customer receives. The value prop is more customer centric.</p> Signup and view all the answers

<p>It may lead to investments in sustainable practices, eco-friendly technologies, and responsible sourcing of resources, which can affect costs and processes.</p> Signup and view all the answers

<p>It provides a common reference point and overarching goal, ensuring alignment in decision-making, strategy, and resource allocation.</p> Signup and view all the answers

<p>It aligns employees, attracts stakeholders, and guides the organization's strategic objectives, fostering a focused and motivated work environment.</p> Signup and view all the answers

<p>Higher interest rates increase the cost of borrowing, making capital investments more expensive. This can lead companies to postpone or reduce investment projects, as the hurdle rate for return on investment increases.</p> Signup and view all the answers

<p>If a new environmental regulation requires significant investment in new technology or processes to comply, larger firms with more capital may be able to absorb these costs more easily, creating a barrier to entry or disadvantaging smaller firms with limited resources.</p> Signup and view all the answers

<p>Increased acceptance of remote work could lead companies to reduce their office space footprint, potentially saving on rent and operational costs. It might also influence decisions about office location, with a shift away from city centers.</p> Signup and view all the answers

<p>AI can create new markets by enabling automation, personalized services, and data-driven decision-making. However, it can also threaten existing business models by automating tasks previously performed by humans, disrupting industries, and creating new competitive dynamics.</p> Signup and view all the answers

<p>New tariffs can increase the cost of imported goods, potentially disrupting supply chains and forcing companies to either absorb the costs or raise prices for consumers. This can impact competitiveness, especially for businesses that rely heavily on imported components or materials.</p> Signup and view all the answers

<p>By developing a distinct strategy consistent with core competencies, business model, or network to achieve a competitive edge over rivals.</p> Signup and view all the answers

<p>High switching costs increase the bargaining power of suppliers because it becomes more difficult and expensive for firms to change suppliers.</p> Signup and view all the answers

<p>Economies of scale and high capital requirements.</p> Signup and view all the answers

<p>A company can reshape the forces by implementing strategies to reduce their impact. For example, a company can increase customer loyalty programs to combat the bargaining power of buyers.</p> Signup and view all the answers

<p>The threat is high when substitutes have lower prices, equal or higher quality/performance, and when few switching costs exist for consumers.</p> Signup and view all the answers

<p>Standardized or undifferentiated products increase buyer power because buyers can easily switch between suppliers, putting pressure on firms to lower prices and increase value.</p> Signup and view all the answers

<p>A strong, aligned culture can facilitate strategy implementation by fostering buy-in and cooperation. A misaligned culture can create resistance and impede progress. For example, a culture of innovation helps implement a new product strategy, while a bureaucratic culture hinders it.</p> Signup and view all the answers

<p>Increase customer loyalty by improving products or adding value added services.</p> Signup and view all the answers

<p>Value Chain Analysis identifies areas of cost advantage or disadvantage along the chain of activities from raw materials to customer service. It helps a company optimize processes, reduce costs, and differentiate itself from competitors.</p> Signup and view all the answers

<p>High rivalry typically indicates low returns/profits for firms in the industry due to intense competition.</p> Signup and view all the answers

<p>Supply chain management helps diversify supplier relationships such that the firm is not over-reliant on a single supplier.</p> Signup and view all the answers

<p>Internal strengths evolve into distinctive competencies when they are unmatched or inimitable by competitors. Leveraging them creates a sustainable competitive advantage and allows the organization to excel in the marketplace.</p> Signup and view all the answers

<p>Integrating strategy and culture ensures that the organization's values and norms support the strategic direction. This alignment facilitates faster and more efficient implementation of changes.</p> Signup and view all the answers

<p>Government policies such as regulations or restrictions can limit the number of firms that are allowed to operate in that sector.</p> Signup and view all the answers

<p>MIS collects, stores, and synthesizes data to provide business intelligence. This information supports decision-making, identifies trends, and monitors the effectiveness of strategic initiatives.</p> Signup and view all the answers

<p>ERM identifies and manages internal and external risks, minimizing threats to achieving strategic objectives. Key components include risk assessment, mitigation strategies, and monitoring.</p> Signup and view all the answers

<p>Macro-environmental analysis identifies external factors (political, economic, social, technological, legal, environmental) that create opportunities and pose threats to an organization. These insights directly populate the 'Opportunities' and 'Threats' sections of a SWOT analysis.</p> Signup and view all the answers

<p>A distinctive competence is a competitively valuable activity that a company performs better than its rivals. It contributes to a competitive advantage when this activity is central to the company’s strategy and allows it to outperform competitors in the market. For example, a car manufacturer offering a long warranty compared to its rivals.</p> Signup and view all the answers

<p>Marketing defines and fulfills customer needs, helping to create a distinct market position. Strategic marketing activities could include developing a strong brand identity, creating innovative products, or building strong customer relationships.</p> Signup and view all the answers

<p>A firm’s public image influences its strategic decisions by shaping stakeholder perceptions and impacting brand reputation. A negative public image can lead to decreased sales, difficulty in attracting investors, and increased regulatory scrutiny. For example, if a company uses child labor, the public will think poorly of them and likely boycott their products.</p> Signup and view all the answers

<p>An internal audit in SWOT analysis identifies a firm's strengths and weaknesses, which are internal factors. It focuses on evaluating the firm's resources, capabilities, and competencies. A thorough audit helps in understanding what the firm does well and where it needs improvement.</p> Signup and view all the answers

<p>The Resource-Based View (RBV) suggests that a firm can achieve a sustainable competitive advantage by leveraging its internal resources that are valuable, rare, inimitable, and non-substitutable. These resources allow the firm to exploit opportunities and neutralize threats effectively.</p> Signup and view all the answers

<p>A core competence is a proficiently performed internal activity central to a company's strategy and competitiveness, while a distinctive competence is a competitively valuable activity a company performs better than its rivals. A distinctive competence often stems from a core competence and provides a competitive edge.</p> Signup and view all the answers

<p>Analyzing opportunities and threats (external to the firm) helps a company identify potential areas for growth and possible risks to its competitive position. This analysis informs strategic decisions by allowing the company to capitalize on opportunities while mitigating threats.</p> Signup and view all the answers

<p>A strong financial performance and market position indicate a well-executed strategy. Key metrics to measure it include revenue growth, profit margins, market share, return on investment, and customer satisfaction scores.</p> Signup and view all the answers

<p>Collaborative partnerships and strategic alliances can expand a company's competitive scope by providing access to new markets, technologies, or resources. For example, a partnership between a tech company and a healthcare provider can create innovative digital health solutions.</p> Signup and view all the answers

Statistical data relating to a population, such as age, ethnicity, and education level.

The rate at which the general level of prices for goods and services rises, eroding purchasing power.

The value of one currency for the purpose of conversion to another.

Government actions through taxation and spending to influence the economy; also includes control of money supply.

Regulations aimed at protecting the environment and controlling pollution.

Unique strengths that provide a competitive edge.

A strength that cannot be easily matched by competitors.

A pattern of behaviors developed as a firm adapts to its environment.

Positive aspects of culture enhancing strategy implementation.

Essential elements like Management, Finance, and Marketing within a company.

Examining activities to identify cost advantages or disadvantages.

A strategic planning tool assessing Strengths, Weaknesses, Opportunities, Threats.

Framework for managing internal and external risks in an organization.

The external environment affecting all firms, including trends and events beyond a single firm's control.

A framework to analyze external factors affecting a business: Political, Economic, Sociological, Technological, Environmental, Legal.

A model analyzing industry competition through five competitive forces: threat of new entrants, bargaining power of suppliers, bargaining power of buyers, threat of substitute products, and industry rivalry.

Systematic gathering and analysis of information about competitors to inform strategic decisions.

Factors outside the firm that can influence its strategy and operations, leading to opportunities or threats.

A statement that explains the benefits a company offers its target market and its advantage over competitors.

Clear missions help align purpose, direct actions, and resolve conflicts among employees.

Key traits of an effective mission statement include being broad, inspiring, and socially responsible.

Important elements of a mission statement: customers, products/services, markets, technology, and philosophy.

The combined effort of employees working together leads to greater outcomes than individual efforts.

A clear mission provides a guiding framework for strategic planning and decision-making.

An effective mission statement considers the perspectives and needs of all stakeholders involved.

Clarity of mission contributes to higher performance and better outcomes for the organization.

A framework to analyze industry structure and competition.

Risk posed by new competitors entering the market.

The ability of consumers to affect pricing and terms.

The influence suppliers have on businesses, affecting prices.

The likelihood of customers finding a different product offering similar benefits.

The intensity of competition between existing firms in an industry.

Obstacles that make it difficult for new firms to enter an industry.

Costs incurred when customers change suppliers or products.

Methods to lessen the effect of competitive forces.

The ability of an industry to generate a return on capital over time.

The firm's major competitive advantage derived from its unique competencies.

The firm’s responsiveness to social, community, and environmental concerns.

Internal attributes that provide an advantage in achieving objectives.

Internal factors that may hinder the firm’s performance.

The theory that a firm’s sustainable competitive advantage comes from its internal resources.

An internal activity that is critical for a firm's strategy and competitiveness.