495 Capstone

Front 1

Strategic Management

Back 1

An integrative management field that combines analysis, formulation, and implementation in the quest for competitive advantage

Front 2

Competitive Advantage

Back 2

Superior performance related to other competitors in the same industry or the industry average

Front 3

Sustainable Competitive Advantage

Back 3

Outperforming competitors or the industry average over a prolonged period of time

Front 4

Competitive Disadvantage

Back 4

Under-performance relative to other competitors in the same industry or the industry average

Front 5

Competitive Parity

Back 5

Performance of two or more firms at the same level

Front 6

Strategy

Back 6

The goal directed actions a firm intends to take in its quest to gain and sustain competitive advantage

Front 7

Co-opetition

Back 7

Cooperation by competitors to achieve a strategic objective

Front 8

Firm Effects

Back 8

The results of managers actions to influence firm performance

Front 9

Industry Effects

Back 9

The results attributed to the choice of industry in which to compete

Front 10

Strategic Business Unit

Back 10

A standalone division of a larger conglomerate with its own profit and loss responsibility

Front 11

Business Model

Back 11

Organizational plan that details the firms competitive tactics and initiatives, in short how the firm intends to make money

Front 12

Bottom of the Pyramid

Back 12

The largest but poorest socioeconomic group of the worlds population

Front 13

Externalities

Back 13

Side effects of production and consumption that are not reflected in the price of a product

Front 14

Croudsourcing

Back 14

A process in which a group of people voluntarily performs tasks that were traditionally completed by a firms employees

Front 15

Stakeholders

Back 15

Individuals or groups who can affect or are affected by the actions of a firm

Front 16

AFI Strategy Framework

Back 16

A model that links three interdependant management tasks: Analyze, Formulate, and Implement

Front 17

Strategic Management Process

Back 17

Method by which managers concieve of and implement strategy that can lead to a sustainable competitive advantage

Front 18

Vision

Back 18

A statement about what an organization ultimately wants to accomplish, it captures the company's aspiration

Front 19

Strategic Intent

Back 19

Staking out of a desired leadership position that far exceeds a company's current resources and capabilities

Front 20

Mission

Back 20

Description of what an organization actually does-what its business is-and why it does it. Can be customer or product orientated

Front 21

Strategic Commitments

Back 21

Actions that are costly, long term orientated, and difficult to reverse

Front 22

Organizational Values

Back 22

Ethical standards and norms that govern the behavior of individuals within a firm or organization

Front 23

Strategic Planning

Back 23

A rational, top down process through which management can program future success; typically concentrates strategic intelligence and decision making responsibilities in the office of the CEO

Front 24

Scenario Planning

Back 24

Strategy planning activity in which managers envision different what if scenarios to anticipate plausable futures

Front 25

Dominant Strategic Plan

Back 25

The strategic option that managers think most closely matches the reality at a given point in time

Front 26

Strategic Initiative

Back 26

Any action a firm pursues to explore and develop new products and processes, new markets, or new ventures

Front 27

Emergent Strategy

Back 27

Any unplanned strategic initiative undertaken by mid-level employees of their own volition

Front 28

Intended Strategy

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The outcome of a rational and structured top-down strategic plan

Front 29

Unrealized Strategy

Back 29

Part or all of a firms strategic plan that falls by teh wayside due to unexpected events

Front 30

Realized Strategy

Back 30

Combination of intended and emergent strategy

Front 31

PESTEL - Accronym

Back 31

Political
Economic
Socio-cultural
Technological
Ecological
Legal

Front 32

PESTEL Model - Definition

Back 32

A framework that catagorizes and analyzes an important set of external forces that might inpinge upon a firm. These forces are embedded in the global environment and can create both opportunities and threats for the firm.

Front 33

Industry

Back 33

A group of companies offering similar products or services. It makes up the supply side of the market, while customers make up the demand side of the market

Front 34

Structure-conduct-performance (SCP) model

Back 34

A framework that explains differences in industry performance. It identifies four different industry types - Perfect competition, monopolistic competition, oligopoly, and monopoly. Fragmented industries tend to be less profitable than consolidated ones.

Front 35

Five Forces Model

Back 35

A framework proposed by Michael Porter that identifies five forces that determine the profit potential of an industry and shape a firms competitive strategy

Front 36

Five Forces - Name them

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1. Threat of entry
2. Power of Suppliers
3. Power of buyers
4. Threat of Substitutes
5. Rivalry among existing competitors

Front 37

Entry Barriers

Back 37

Obstacles that determine how easily a firm can enter an industry. Entry barriers are often one of the most significant predictors of industry profitability

Front 38

Exit Barriers

Back 38

Obstacles that determine how easily a firm can leave an industry

Front 39

Complement

Back 39

A product, service, or competency that adds value to the original product offering when the two are used in tandem

Front 40

Value

Back 40

The dollar amount a consumer would attach to a good or service, the customers MAXIMUM willingness to pay; sometimes also called reservation price

Front 41

Economic Value Created

Back 41

Difference between value and cost, or sometimes called economic contribution

Front 42

Profit

Back 42

Price minus cost

Front 43

Consumer Surplus

Back 43

Diffrence between the value a consumer attaches to a good or service and what he or she paid for it

Front 44

Opportunity Costs

Back 44

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

Front 45

Risk Capital

Back 45

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

Front 46

Total Return to Shareholders

Back 46

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

Front 47

Balanced Scorecard

Back 47

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

Front 48

Triple Bottom Line

Back 48

Economic, social, ecological -> Sustainable strategy