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74 Cards in this Set

  • Front
  • Back
Three Strategy Making Steps
Assess Need for Strategic Change

Conduct Situational Analysis

Choose Strategic Alternatives
How to Assess need for strategic change
avoid competitive inertia

look for strategic dissonance
How to conduct situational analysis
Strengths and Weakesses look at
Distinctive Competence
Core Capabilities
Opportunities and Threats look at
Environment scanning

Strategic Groups

Shadow-Strategy Task Force
2 Corporate-Level Strategies
Portfolio Strategy

Grand Strategies
3 Grand Strategies


3 Industry-level Strategies
Five Industry Forces

Positioning strategies

Adaptive strategies
Five Industry Forces
Character of rivalry

Threat of new entrants

Threat of substitute roducts or services

Bargaining power of suppliers

Bargaining power of buyers
3 (Industry) Positioning Strategies
Cost leadership


3 (Industry) Adaptive Strategies



3 Firm-level Strategies
Direct Competition

Strategic move of direct competition

Entrepreneurial Orientation
2 Indicators of Direct Competition (Firm-level)
Market commonality
Resource similarity
2 Strategic moves of direct competition

5 Entrepreneurial Orientation factors (Firm-level)




Competitive aggressiveness
BCG Categories
Question Marks, Stars, Dogs Cash Cows
Problems with Portfolio Strategy
doesn't reduce risk

uses present performance

assessment of growth potential are inaccurate

cash cows fail to thrive
companies overpay to acquire stars
Recommendations for making portfolio strategy work
don't quickly sell dogs or question marks

related diversification

Complementary core capabilities

encourage collaboration between related firms

date before marrage
When likely to attack
Weak market commonality
When likely to respond
High resource similarity
the assets, capabilities, processes, information and knowledge that an organization uses to improve its effectiveness and efficency and to create and sustain and advantage over competitors
competitive advantage
providing greater value for customers than competitors can
sustainable competative advantage
a competitive advantage that other companies have tried unsuccessfully to duplicate and have stopped trying to duplicate
valuable resource
a resource that allows a company to improve efficiency and effectiveness
rare resources
a resource that is not controlled or possessed by many firms
imperfectly imitable resource
a resource that is impossible or extremely costly or difficult for other firms to duplicate
non-substitutable resource
a resource, without equivalent substitutes or replacements, that produces value or competitive advantage.
competitive inertia
a reluctance to change strategies or competitive practices that have been successful in the past
strategic disonance
a discrepancy between upper management's intended strategy and the strategy actually implemented by lower levels of management
situational analysis (SWOT)
an assessment of the strengths and weaknesses in an organizations internal environment and the opportunities and threats in its external environment
distinctive competence
what a company can make do or perform better than comptitors
core capabilities
the internal decision making routines, prolem solving processes and organizational cultures that determin how efficently inputs can be turned to outputs
strategic group
a group of companies within an industry that top managers choose to compare, evaluate and menchmar strategic threats and opportunities
core firms
the central companies in a strategic group
secondary firms
the firms in a strategic group that follow related but somewhat different strategies than do te core firms
shadow-strategy tas force
a committee withing the company that analyzes the companies own weaknesses to determine how competitors could exploit them for competitive advantage
strategic reference points
the strategic targets managers use to measure whether a firm has developed the core competencies it needs to achieve a sustainable competitive advantage
corporate level strategy
the overall organizational strategy that addresses the question "What business or businesses are we in or should we be in?"
a strategy for reducing risk by buying a variety of items so tat the failure of one stock or business does not doom the entire portfolio
portfolio strategy
corporate-level strategy that minimizes risk by diversifying investment among various businesses or product lines
purchase of a company by another company
unrelated diversification
creating or acquiring companies in a completely unrelated business
BCG marix
a protfolio strategy developed by the Boston Consulting Group that managers use to categories the corporations businesses by growth rate and relative market share.
a company with a large share of a fast growing market
question mark
a company with a small share of a fast-growing market
cash cow a company with a large share of a slow growing market
a company with a large share of a slow growing market
a company with a small share of a slow-growing market
related diversificates
creating or acquiring companies that share similar products, manufacturing, marketing technology or culture
grand strategy
a broad corporate-level strategic plan used to schieve strategic goals and guide that strategic alternatives that managers of individual business or subunits may use
growth strategy
strategy that focuses on increasing profits, revenues, market share, or the number of places in which the company does business
stability strategy
strategy that focuses on improving the way in which the company sells the same products or services to the same customers
retrenchment strategy
strategy that focuses on turning around very poor company performance by shrinking the size or scope of the business
the strategic actions taken after retrenchment to return to a growth strtegy
industry level strategy
corporate strategy that addresses the question "How should we compete in the industry?"
character of the rivalry
a measure of the intensity of competitive behaviour between companies in an industry
threat of new entrants
a measure of the degree to which barriers to entry make it easy or difficult for new companies to get in an industry
threat of substitute products or services
a measure of the ease with which customers can find substititues of an industry's products or services
bargaining power of suppliers
a measure of the influence that suppliers of parts materials and services to firms in a industry have on the prices of these inputs.
barganing power of buyers
a measure of the influence that customers have ona firm's prices
cost leadership
the positioning strategy of producing a product or service of acceptable quality at consistently lower production costs than competitors can so that the firm can offer the products or service at the lowest price in the industry
the positioning strategy of providing a product or service that is sufficiently different from competitors offerings that customers are willing to pay a premium price for it
focus strategy
the positioning strategy of using cost leadership or differentiation to produce a specialize product or service for a limited, specially targeted group of customers in a particular geographic region or market segment.
adaptive strategy aimed at defending strategic positions by seeking moderate steady growth and by offering a limited range of high-quaity products and services toa well-defined set of customers
an adaptive strategy that seeks fast growth by searching for new market opportunities, encouraging risk=taking and being the first to bring innovative new products to market
an adaptive strategy that seeks to minimize risk and maximize profits by following on imitating the proven successes of prospectors
an adaptive strategy of not following consistent strategy, but instead reacting to changes in the external environment after they occur
firm-level strategy
corporate strategy that addresses the question "How should we compete against a particular firm?"
direct competition
the rivalry between two companies that offers similar products services acknowledge each other as rivals and act and react to each other's strategic actions
market commonality
the degree to which tow companies have overlapping products, services, or customers in multiple markets
resource similarity
the extend to which a competitor has similar amount and kinds or resources
a competitive move designed to reduce a rival's market share or profits
a countermove prompted by a rival's attack, to defend or improve a company's market share or profit
the process of entering new or established markets iwth new goods or services
entrepreneurial orientation
the set of processes, practices and decision making activities that lead to new entry, characterized by five dimensions: autonomy, innovativeness, risk-taking, proactiveness, and competitive aggressiveness