Chap One: Strategic Management And Strategic Competitiveness

Front 1

strategic competitiveness

Back 1

achieved when a firm successfully formulates and implements a value-creating strategy

Front 2

strategy

Back 2

an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage

Front 3

competitive advantage

Back 3

an implemented strategy that creates superior value for customers and that its competitors are unable to duplicate or find too costly to imitate

Front 4

above-average returns

Back 4

returns in excess of what an investor expects to earn from other investments with a similar amount of risk

Front 5

global economy

Back 5

goods, services, people, skills, and ideas move freely across geographic borders

Front 6

hypercompetition

Back 6

when firms aggressively challenge their competitors in the hope of improving their competitive position and ultimately their performance

Front 7

how does global economy change the competitive landscape

Back 7

-the Eurpoean union has become one of the world's largest markets
-China has become an extremely competitive market

Front 8

strategic flexibility

Back 8

a set of capabilities used to respond to various demands and opportunities existing in a dynamic and uncertain competitive environment

Front 9

How do firms use the Industrial Organization model to earn above average returns

Back 9

firms are able to effectively study the external environment as the foundation for identifying an attractive industry and implementing the appropriate strategy
-returns are determined primarily by external characteristics rather than by the firm's unique internal resources and capabilities
-used to identify an attractive industry
-focuses outside the firm

Front 10

How do firms use the Resource-Based model to earn above average returns

Back 10

-firms acquire different resources and develop unique capabilities based on how they combine and use the resources
-the strategy the firm chooses should allow it to use its competitive in an attractive industry
-focuses inside the firm

Front 11

capability

Back 11

the capacity for a set of resources to perform a task or an activity in an integrative manner
-should be neither so simple that it is highly imitable, nor so complex that it defies internal steering and control

Front 12

core competencies

Back 12

resources and capabilities that serve as a source of competitive advantage for a firm over its rivals
-what your company does better then any other company
-Apple's R&D

Front 13

criteria for resources and capabilities to become core competencies

Back 13

valuable
rare
costly to imitate
non-substuitutable

Front 14

vision

Back 14

a picture of what the firm want to be and what it want to ultimately achieve
-ideal description of an organization and gives shape to intended future
-enduring (lasts a long time), short and concise

Front 15

mission

Back 15

-specifies the businesses in which the firm intends to compete and the customers it intends to serve
-more concrete then vision
-deals more with product markets and customers

Front 16

stakeholders

Back 16

individuals, groups, and organizations that can affect the firm's vision and mission, are affected by the strategic outcomes achieved, and have enforceable claims on the firm's performance
-positive relationship with stakeholders can be a competitive advantage

Front 17

3 types of stakeholder

Back 17

-capital market
-product market
-organizational

Front 18

capital market stakeholders

Back 18

shareholders
major suppliers of capital (banks)

Front 19

product market stakeholders

Back 19

primary customers
suppliers
host communities
unions

Front 20

organization stakeholders

Back 20

employees
managers
nonmanagers

Front 21

organizational cultural

Back 21

the complex set of ideologies, symbols, and core values that are shared throughout the firm and that influence how the firm conducts business

Front 22

strategic leaders

Back 22

help to obtain extra effort by employees, thereby achieving enhanced firm performance

-people located in different areas an levels of the firm using the strategic management process to select strategic actions that help the firm achieve its vision and fulfill its mission