|
|
|
|
FINANCIAL RISK - represents the risk borne by common stockholders as a result of the introduction of fixed obligations such as debt and preferred stock in the capital structure. As financial leverage increases, the risk inherent in operations (business risk) is spread over a smaller equity base, thus increasing risk for each share. FIRM INFRASTRUCTURE - includes support activities such as general management; strategic planning; finance; accounting; legal; government affairs and regulatory compliance; quality management; management information systems development; and building services. FIRST MOVER ADVANTAGES - refer to advantages that accrue to the firm which is first to market a new product or service. For example, the first major brand name may have lower costs of establishing and maintaining brand name. FIVE FORCES MODEL - see Industry Structure Analysis. FIXED ASSET COSTS - refer to the allocation of costs to an activity for the use of a fixed asset. The two other activity costs are human resource costs and the costs of purchased operating inputs. FOCUSER - a firm with a competitive strategy based upon Cost Focus or Differentiation Focus. [Source: M. Porter] Within the context of the industry segmentation matrix, a focuser targets only one or a few industry segments, as opposed to targeting most or all segments. For example, an Italian restaurant focuses on Italian food. A pizza restaurant can focus on just pizza. Some pizza restaurants focus on just eat-in or just take-out. And some pizza restaurants choose not to sell pizza by the slice. FOREIGN CURRENCY RISK - the risk of loss resulting from adverse fluctuations in the value of a foreign currency. FORMAL ORGANIZATIONAL ARRANGEMENTS - refers to the hierarchical reporting relationships, job responsibilities, rules, systems and procedures, and other formal means that enable necessary work to be accomplished. FORWARD INTEGRATION - is when a supplier also becomes a competitor. [Source: M. Porter] FRUIT-SALAD SYNDROME - A common undesirable condition afflicting many general managers of large corporations. The afflicted are unable or unwilling to view their organization or department as anything other than an indivisible, organizational `blob.' Strategic analysis of a blob makes about as much sense as asking how many calories are in six ounces of fruit salad without knowing what specific fruits are in the fruit salad. Identifying the strategically relevant business units of the organization is the first step back to strategic health and recovery from the fruit-salad syndrome. FUNCTIONAL QUALITY - refers to the value of a system (application or program) from the end
user's perspective when judging how well a system performs in terms of
functionality, ease of use, and meeting the business needs. |
Send e- mail to
webmaster@e-competitors.com with comments. Or
use Feedback.
|
