Term
| Two Primary Components of Strategy |
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Definition
Plan & Action
A firms theory of how to compete and succesfully plan and the actions that flow from it in order to gain a competitive advantage. |
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Term
| How does a firm know if it has a competitive advantage relative to their competitors? How is this related to the text's definition of competitive advantage? |
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Definition
A firm has a competitive advantage when it implements a strategy that creates superior value for customers and competitors are unable to duplicate or find too costly to try to imitate.
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Term
| Two Sources of Value Creation |
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Definition
| Price and Costs of Production? |
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Term
| Above-average returns to other investments with a similar risk (competitive advantage) |
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Definition
| Above average retruns can be earned with either a cost leadership strategy or a differentiation strategy. |
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Term
| First Four Steps of Strategic Management Process |
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Definition
Vision and Mission
External Analysis
Internal Analysis
SWOT Analysis & Strategic Choice |
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Term
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Definition
| What the firm wants to be, values and responsibility of CEO |
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Term
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Definition
| Specifies businessnes and customers, more concrete than vision, establish firms individuality and ethical standards. |
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Term
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Definition
| Focus on Industrial Organizational model |
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Term
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Definition
| Focus on resource based view model |
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Term
| SWOT Analysis and Strategic Choice |
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Definition
| Select strategies that build on the organizations strengths, correct its weaknesses in order to take advantage of external opportunities and counter external threats. |
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Term
| Functional Level Strategy |
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Definition
| directed on improving the effectiveness of operations such as manufacturing, materials management, product development, marketing, customer service within a company |
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Term
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Definition
| encompasses the business's overall competitive theme, the way it positions itself in the marketplace to gain a competitive advantage, and the different positioning strategies that can be used in different sindustry settings (cost leadership, differentiation, focusing on a particular niche or segment of the industry |
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Term
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Definition
| In a hypercompetitive market, firms often aggresively challenge their competitors in the hopes of improving their competitive position and ultimately their performance. The emergence of a global economy and technology specifically rapid technological change. |
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Term
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Definition
| Globalization increases the range of opportunities for companies competing in the current competitive landscape. Must be culturally sensitive |
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Term
| Three Global Technology Related Trends |
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Definition
1. Technology Diffusion/Disruptive Technologies
2. The information age
3. Increasing knowledge intensity |
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Term
| Assumptions of the IO Model |
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Definition
| Assumptions: external environment is aassumed to impose pressures and constraints thatdetermind the strategies that would result in above average returns; most firms competing within an industry or within a segment of that industry are asasumed to control similar strategically relvant resources and to pursue similar strategies in light of those resources; resources used to implement strategies are assumed to be highly mobile across firms, so any resource differences that might develop between firms will be short lived; organizational decisino makers are assumed to be rational and committed to acting in the firms best interests. |
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Term
| Implications of the I/O Model |
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Definition
| The model suggests that returns are determind primarily by external characteristics rather than by the firm's unique internal resources and capabilities. |
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Term
| Assumptions of Resource-Based Model |
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Definition
| Assumes each organization is a collection of unique resources and capabilities, firms acquire different resources and develop unique capabilities based on how they combine and use the resource; resources and certain capabilities are the basis of competitive advantage; not mobile across firms. |
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Term
| Implications of Resource Based Model |
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Definition
| Differences in firms' performances across time are due primarily to their unique resources and capabilities rather than the industry's structura characteristics. |
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Term
| How should a firms mission differ from a vision? |
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Definition
| Mission is much more concrete than the vision. A vision is what the firm wants to be in broad terms, a mission specifies the industry a business wants to compete in and how they plan to compete. |
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Term
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Definition
| Intended & Realized Strategies |
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Term
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Definition
Realized Strategy <--> emergent strategy
emergent strategies: responses to unforseen circumstances. |
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Term
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Definition
Capital Market Stakeholders
Product Market Stakeholders
Organizational Stakeholders |
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Term
| Capital Market Stakeholders |
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Definition
| shareholders, block holders, institutional investors, debt holders etc. |
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Term
| Product Market Stakeholders |
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Definition
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Term
| Organizational Stakeholders |
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Definition
| Top management and employees |
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Term
| "The more critical and valued a stakeholder's participation, the greater a firm's dependency on it" |
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Definition
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Term
| Stakeholder Impact Analysis |
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Definition
ID Stakeholders
Identify stakeholdrs' interests and concerns
Identify resulting claims stakeholders are likely to make
ID most important stakeholders
Identify resulting strategic challenges |
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Term
| Difference between functional managers & general managers |
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Definition
General managers: corporate and business (whole unit)
Functional Managers: each is an expert in their area |
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Term
| 6 Key characteristic of good leadership |
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Definition
1. Vision, eloquence, consistency
2. Commitment
3. Being well informed
4. Willingness to delegate and empower
5. The astute use of power (wise use of power)
6. Emotional intelligence |
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