UGC NET Management Unit - VI Flashcards

24 sample cards from the Unit - VI deck

Sampled from the end of the deck, so these are different cards from the ones shown on the syllabus page.

1. What is the difference between horizontal and vertical integration?

   Horizontal integration is acquiring/merging with competitors at the same value-chain stage; vertical integration is expanding into earlier (backward) or later (forward) stages of the supply chain.

2. What are the components of Ansoff's Product-Market Growth Matrix?

   Market Penetration (existing product/existing market), Market Development (existing product/new market), Product Development (new product/existing market), and Diversification (new product/new market).

3. What are the typical retrenchment strategies at the corporate level?

   Turnaround, Divestiture (selling a business unit), and Liquidation (selling off assets and ceasing operations).

4. What is Business Portfolio Analysis?

   A technique used by multi-business firms to analyze and manage their various business units as a portfolio, allocating resources based on each unit's competitive position and market attractiveness.

5. What are the two axes of the BCG Growth-Share Matrix?

   Market Growth Rate (vertical axis, industry attractiveness) and Relative Market Share (horizontal axis, competitive position).

6. What are the four quadrants/categories of the BCG Matrix?

   Stars (high growth, high share), Cash Cows (low growth, high share), Question Marks/Problem Children (high growth, low share), and Dogs (low growth, low share).

7. In the BCG Matrix, what is a 'Cash Cow' and how should it be managed?

   A business with high relative market share in a low-growth market that generates more cash than it consumes; it should be 'milked' to fund Stars and Question Marks.

8. In the BCG Matrix, what is a 'Star' and what is its recommended strategy?

   A business with high market share in a high-growth market; it needs heavy investment to maintain its leadership and is expected to become a Cash Cow as growth slows.

9. In the BCG Matrix, what is a 'Dog' and what is the typical recommended action?

   A business with low market share in a low-growth market that generates little cash; the recommended action is usually divestiture or liquidation.

10. In the BCG Matrix, what is a 'Question Mark' (Problem Child)?

    A business with low relative market share in a high-growth market; it consumes cash and requires a decision to invest heavily (build into a Star) or divest.

11. What are the two dimensions of the GE-McKinsey Nine-Cell Matrix?

    Industry (Market) Attractiveness and Business Unit (Competitive) Strength, each rated high/medium/low to form a 3x3 grid.

12. How does the GE-McKinsey Matrix differ from the BCG Matrix?

    The GE Matrix uses multiple weighted factors for two composite dimensions (industry attractiveness and competitive strength) across nine cells, whereas BCG uses just two single measures (market growth and relative market share) across four cells.

13. What three strategic prescriptions emerge from the GE-McKinsey Matrix zones?

    Invest/Grow (top-left strong cells), Selectivity/Hold/manage for earnings (diagonal cells), and Harvest/Divest (bottom-right weak cells).

14. How is Relative Market Share calculated in the BCG Matrix?

    Relative Market Share = Business unit's market share ÷ market share of its largest competitor (a value above 1.0 indicates market leadership).

15. What does the BCG Matrix assume about the relationship between market share and profitability?

    It assumes that higher relative market share leads to greater cumulative experience and economies of scale, lowering costs and increasing profitability/cash generation (the experience curve effect).

16. What are the seven elements of the McKinsey 7S Framework?

    Strategy, Structure, Systems, Shared Values, Skills, Style, and Staff.

17. In the McKinsey 7S Framework, which are the 'hard' S's and which are the 'soft' S's?

    Hard S's: Strategy, Structure, Systems (tangible, easier to define/manage). Soft S's: Shared Values, Skills, Style, Staff (intangible, culture-driven).

18. What is the central element of the McKinsey 7S Framework and why?

    Shared Values (originally 'Superordinate Goals') is central because it lies at the core, connecting all other elements and representing the organization's guiding principles and culture.

19. In the McKinsey 7S model, what does 'Style' refer to?

    The leadership and management style—how managers behave, interact, and lead, and the culture and patterns of behavior they reinforce.

20. In the McKinsey 7S model, what is the distinction between 'Skills' and 'Staff'?

    Skills are the distinctive competencies and capabilities of the organization as a whole; Staff refers to the people/human resources—their numbers, types, recruitment, development, and motivation.

21. What is the key premise of the McKinsey 7S Framework?

    That organizational effectiveness requires all seven interdependent elements to be aligned and mutually reinforcing; a change in one element requires adjusting the others.

22. What are the main 'Challenges of Change' that organizations face when implementing strategy?

    Resistance to change, organizational inertia, inadequate resources/skills, poor communication, cultural misalignment, lack of leadership commitment, and uncertainty/fear among employees.

23. What are the stages of Lewin's three-step model of change?

    Unfreezing (preparing for change/breaking the status quo), Changing/Moving (implementing the new state), and Refreezing (stabilizing and institutionalizing the change).

24. What are common methods for overcoming resistance to change (per Kotter and Schlesinger)?

    Education and communication, Participation and involvement, Facilitation and support, Negotiation and agreement, Manipulation and co-optation, and Explicit and implicit coercion.

What this deck covers

Unit - VI flashcards FAQ