BCOR 460 Chapter 5/Chapter 6 Key Terms

question

Balanced Scorecard

answer

strategy implementation tool that harnesses multiple internal and external performance metrics in order to balance financial and strategic goals

question

business model

answer

stipulates how the firm conducts its business with its buyers, suppliers, and partners in order to make money

question

consumer surplus

answer

difference between the value a consumer attaches to a good or service (V) and what he or she paid for it (P), or (V-P).

question

economic value created

answer

difference between value (v) and cost (c), or (v-c).

question

Market Capitalization

answer

A firm performance metric that captures the total dollar market value of a company's total outstanding shares at any given point in time.

question

opportunity cost

answer

the value of the best forgone alternative use of the resources employed.

question

producer surplus

answer

Another term for profit, the difference between price charged (P) and the cost to produce (C), or (P - C); also called profit.

question

profit

answer

difference between price charged (P) and the cost to produce (C), or (P-C); also called producer surplus

question

reservation price

answer

the maximum price a consumer is willing to pay for a product or service based on the total perceived consumer benefits.

question

risk capital

answer

the money provided by shareholders in exchange for an equity share in a company; it cannot be recovered if the firm goes bankrupt

question

shareholders

answer

individuals or organizations that own one or more shares of stock in a public company.

question

sustainable strategy

answer

A strategy along the economic, social, and ecological dimensions that can be pursued over time without detrimental effects on people or the planet.

question

total return to shareholders

answer

return on risk capital that includes stock price appreciation plus dividends received over a specific period

question

triple bottom line

answer

Combination of economic, social, and ecological concerns—or profits, people, and planet—that can lead to a sustainable strategy.

question

value

answer

The dollar amount (V) a consumer attaches to a good or service; the consumer's maximum willingness to pay; also called reservation price.

question

Blue Ocean Strategy

answer

Business-level strategy that successfully combines differentiation and cost-leadership activities using value innovation to reconcile the inherent trade-offs.

question

business level strategy

answer

the goal-directed actions managers take in their quest for competitive advantage when competing in a single product market

question

cost leadership strategy

answer

generic business strategy that seeks to create the same or similar value for customers at a lower cost

question

differentiation strategy

answer

generic business strategy that seeks to create higher value for customers than the value that competitors create, while containing costs

question

diseconomies of scale

answer

increases in cost per unit when output increases

question

economies of scale

answer

decreases in cost per unit as output increases

question

economies of scope

answer

savings that come from producing two (or more) outputs at less cost than producing each output individually, despite using the same resources and technology

question

focused cost leadership strategy

answer

same as the cost-leadership strategy except with a narrow focus on a niche market

question

focused differentiation strategy

answer

same as the differentiation strategy except with a narrow focus on a niche market

question

minimum efficient scale (MES)

answer

output range needed to bring down the cost per unit as much as possible, allowing a firm to stake out the lowest-cost position that is achievable through economies of scale

question

scope of competition

answer

the size - narrow or broad - of the market in which a firm chooses to compete

question

strategic trade-offs

answer

Choices between a cost or value position. Such choices are necessary because higher value creation tends to generate higher cost.

question

strategy canvas

answer

graphical depiction of a company's relative performance vis-a-vis its competitors across the industry's key success factors

question

value curve

answer

horizontal connection of the points of each value on the strategy canvas that helps strategists diagnose and determine courses of action

question

value innovation

answer

the simultaneous pursuit of differentiation and low cost in a way that creates a leap in value for both the firm and the consumers; considered a cornerstone of blue ocean strategy

1 of 30

question

Balanced Scorecard

answer

strategy implementation tool that harnesses multiple internal and external performance metrics in order to balance financial and strategic goals

question

business model

answer

stipulates how the firm conducts its business with its buyers, suppliers, and partners in order to make money

question

consumer surplus

answer

difference between the value a consumer attaches to a good or service (V) and what he or she paid for it (P), or (V-P).

question

economic value created

answer

difference between value (v) and cost (c), or (v-c).

question

Market Capitalization

answer

A firm performance metric that captures the total dollar market value of a company's total outstanding shares at any given point in time.

question

opportunity cost

answer

the value of the best forgone alternative use of the resources employed.

question

producer surplus

answer

Another term for profit, the difference between price charged (P) and the cost to produce (C), or (P - C); also called profit.

question

profit

answer

difference between price charged (P) and the cost to produce (C), or (P-C); also called producer surplus

question

reservation price

answer

the maximum price a consumer is willing to pay for a product or service based on the total perceived consumer benefits.

question

risk capital

answer

the money provided by shareholders in exchange for an equity share in a company; it cannot be recovered if the firm goes bankrupt

question

shareholders

answer

individuals or organizations that own one or more shares of stock in a public company.

question

sustainable strategy

answer

A strategy along the economic, social, and ecological dimensions that can be pursued over time without detrimental effects on people or the planet.

question

total return to shareholders

answer

return on risk capital that includes stock price appreciation plus dividends received over a specific period

question

triple bottom line

answer

Combination of economic, social, and ecological concerns—or profits, people, and planet—that can lead to a sustainable strategy.

question

value

answer

The dollar amount (V) a consumer attaches to a good or service; the consumer's maximum willingness to pay; also called reservation price.

question

Blue Ocean Strategy

answer

Business-level strategy that successfully combines differentiation and cost-leadership activities using value innovation to reconcile the inherent trade-offs.

question

business level strategy

answer

the goal-directed actions managers take in their quest for competitive advantage when competing in a single product market

question

cost leadership strategy

answer

generic business strategy that seeks to create the same or similar value for customers at a lower cost

question

differentiation strategy

answer

generic business strategy that seeks to create higher value for customers than the value that competitors create, while containing costs

question

diseconomies of scale

answer

increases in cost per unit when output increases

question

economies of scale

answer

decreases in cost per unit as output increases

question

economies of scope

answer

savings that come from producing two (or more) outputs at less cost than producing each output individually, despite using the same resources and technology

question

focused cost leadership strategy

answer

same as the cost-leadership strategy except with a narrow focus on a niche market

question

focused differentiation strategy

answer

same as the differentiation strategy except with a narrow focus on a niche market

question

minimum efficient scale (MES)

answer

output range needed to bring down the cost per unit as much as possible, allowing a firm to stake out the lowest-cost position that is achievable through economies of scale

question

scope of competition

answer

the size - narrow or broad - of the market in which a firm chooses to compete

question

strategic trade-offs

answer

Choices between a cost or value position. Such choices are necessary because higher value creation tends to generate higher cost.

question

strategy canvas

answer

graphical depiction of a company's relative performance vis-a-vis its competitors across the industry's key success factors

question

value curve

answer

horizontal connection of the points of each value on the strategy canvas that helps strategists diagnose and determine courses of action

question

value innovation

answer

the simultaneous pursuit of differentiation and low cost in a way that creates a leap in value for both the firm and the consumers; considered a cornerstone of blue ocean strategy

Order an Essay Now & Get These Features For Free:

Turnitin Report

Formatting

Title Page

Citation

Outline

Place an Order