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9 Cards in this Set

  • Front
  • Back
Strategy
•Overall concept for how an organization itself and all its activities in order to conduct business successfully, outperform competitors, and deliver superior returns to its shareholders
•Fundamentally about developing a dominant logic for how the company should uniquely operate, focusing its attention and investments on that unique model, and ensuring that all parts of the organization are working consistently in support of that model
•The sustainability of competitive advantage
•2 imperatives
1)Opportunity recognition
2)Value creation
Strategic management
•Process through which strategy is developed, executed, and evaluated
1) Analysis
2) Formulation
3) Implementation
4) Evaluation

•Analysis: examining and understanding the industry; looking inside the company to understand its unique competitive strengths; discovering new opportunities or threats
•Formulation: management articulates its vision and mission, outlines its goals and objectives, and decides upon a particular type of strategic approach to take
•Implementation: putting the formulated strategy into practice
Opportunity recognition
•Critical need in business to identify and exploit where the market is heading

•Rapid change, obsolescence, partnering with other firms to gain complementary capabilities, fluidity of international financial institutions
Value creation
•Primary goal of strategy; value created is widely accounted for by all the stakeholders of the company
Value chain
•Provides a systematic way of examining all the activities a firm performs and how those activities interact with each other to find a basis for competitive advantage
Strategic decisions
•1) are relevant to ill-structured and nonroutine situations
2) significantly affect the subsequent actions of the entire organization
3) involve a significant commitment of resources
4) are difficult to reverse both economically and politically
5) are easily identified with the success or failure of the organization
Corporate strategy
•The strategy involved in managing multiple business units under the same corporate banner

•Acquiring, manage, and divesting various business units in an effort to create a portfolio that attains economic returns in excess of what the individual business units could produce on their own; economies of scale
Metrics
•Qualitative and quantitative measures that allow the firm to measure the effectiveness of its business strategy
•Relative to competitors
Superior performance
•Refers to performance outcomes that exceed the average for the industry in which the company competes