Man 4720 Midterm P1

Front 1

Mission vs. vision

Back 1

current vs. future

Front 2

Goals vs. objectives

Back 2

both are targets; goals are general; objectives are specific, measureable, and dated

Front 3

Strategies vs. tactics

Back 3

both are actions; strategies are general; tactics are specific

Front 4

Strategic Mission

Back 4

differentiate mission statement from strategic mission; who we are, what we do, where we do it; often reflects a company's generic strategy (strategic posture); the corporate fingerprint: what makes us unique?

Front 5

Porter's generic strategies

Back 5

low cost, differentiation, segmentation

Front 6

The key question regarding mission is

Back 6

what business are we really in?

Front 7

Corollary

Back 7

when making a decision about what business we're in, we should consider where we would be most competitive

Front 8

Public mission statements

Back 8

mission statements are useful, they are for the real world, should be 25 words or less, should help me make decisions about what's most important, how I should spend my time, what's rewarded

Front 9

Level 5 leadership

Back 9

self-effacing, reserved, quiet. Personal humility, professional will

Front 10

First who, then what

Back 10

get the right people on the bus, wrong people off the bus, right people in the right seats; then drive

Front 11

Confront the brutal facts

Back 11

be realistic about their current situation

Front 12

The hedgehog concept

Back 12

what are you passionate about; what can you be the best in the world at; what drives your economic engine

Front 13

Culture matters (discipline)

Back 13

a substitute for controls, bureaucracy

Front 14

Technology accelerators

Back 14

technology is never the strategy, focused application is

Front 15

Deliberate practice in business

Back 15

not just getting done, but getting better; requires focus-identifying the steps, what makes each work, how to get better at each; practice and feedback

Front 16

What's out there and why does it matter

Back 16

outside your business' walls, what keeps you awake at night> what gets you out of bed in the morning?

Front 17

External analysis

Back 17

useful because it allow you to explore the O&T side of the SWOT; necessary for performing a strategic analysis of a particular firm; building block

Front 18

PESTLE

Back 18

Macro-environment analysis

political, economic, socio-cultural, technological, legal, environmental

Front 19

Porter's five forces

Back 19

current competitors, potential entrants, buyers, suppliers, substitute products

Front 20

Threat of new entrants

Back 20

depends on the barriers to entry that are present, coupled with the reaction from existing competitors that the entrant can expect

Front 21

Bargaining power of buyers

Back 21

buyers compete with the industry by forcing down prices, bargaining for higher quality or more services, and playing competitors against each other—all at the expense of industry profitability

Front 22

Bargaining power of suppliers

Back 22

threatening to raise prices or reduce the quality of purchased goods and services

Front 23

Threat of substitute products

Back 23

searching for other products that can perform the same function as the product of the industry

Front 24

Barriers to entry

Back 24

economies of scale, product differentiation, capital requirements, access to dist. Channels, cost disadvantages independent of scale, government policy

Front 25

Porter's value chain-primary activities

Back 25

inbound logistics, operations/production, outbound logistics, marketing and sales, service

Front 26

Porter's value chain-support activities

Back 26

procurement, technology development/R&D, human resource management, firm infrastructure/top management

Front 27

Mistakes in environmental analysis can be avoided by

Back 27

don't substitute forecasts for reality; create alternative possible futures; consider alternative possible pasta; search for causal processes; identify key events, key success factors, and their consequences, develop an integrated analytical approach

Front 28

Competition

Back 28

is at the core of the success or failure of firms

Front 29

Competitive strategy

Back 29

the search for a favorable competitive position in an industry, the fundamental arena in which competition occurs

Front 30

Two central questions of competitive strategy

Back 30

attractiveness of industries for long-term profitability and the factors that determine it; the determinants of relative competitive position within an industry

Front 31

Competitive advantage grows fundamentally out of

Back 31

value a firm is able to create for its buyers that exceeds the firm's cost of creating it

Front 32

Value is

Back 32

what buyers are willing to pay

Front 33

Superior value stems from

Back 33

offering lower prices than competitors for equivalent benefits or providing unique benefits that more than offset a higher price

Front 34

Two basic types of competitive advantage

Back 34

cost leadership and differentiation

Front 35

Competitive scope

Back 35

the range of a firm's activities

Front 36

The first fundamental determinant of a firm's profitability is

Back 36

industry attractiveness

Front 37

The collective strength of these five competitive forces determines

Back 37

the ability of firms in an industry to earn, on average, rates of return on investment in excess of the cost of capital

Front 38

The five forces determine industry profitability because

Back 38

they influence the prices, costs, and required investment of firms in an industry

Front 39

Industry structure

Back 39

the underlying economic and technical characteristics of an industry

Front 40

The threat of entry determines

Back 40

the likelihood that new firms will enter an industry and compete away the value, either passing it on to buyers in the form of lower prices or dissipating it by raising the costs of competing

Front 41

The power of buyers determines

Back 41

the extent to which they retain most of the value created for themselves, leaving firms in an industry only modest returns

Front 42

Threat of substitutes determines

Back 42

the extent to which some other product can meet the same buyer needs, and this places a ceiling on the amount a buyer is willing to pay for an industry's product

Front 43

The power of suppliers determines

Back 43

the extent to which value created for buyers will be appropriated by suppliers rather than by firms already in an industry will compete away the value they create for buyers among themselves, passing it on to buyers in lower prices or dissipating it in higher costs of competing

Front 44

Exit barriers

Back 44

keep firms from leaving an industry when there is too much capacity, and prolong periods of excess capacity

Front 45

Positioning

Back 45

determines whether a firm's profitability is above or below the industry average

Front 46

Sustainable competitive advantage

Back 46

the fundamental basis of above-average performance in the long run

Front 47

The two basic types of competitive advantage combined with the scope of activities for which a firm seeks to achieve them lead to three generic strategies for achieving above-average performance in an industry

Back 47

cost leadership, differentiation, and focus

Front 48

The focus strategy has two variants

Back 48

cost focus and differentiation focus

Front 49

Cost leadership

Back 49

a firm sets out to become the low-cost producer in its industry; the firm has a broad scope and serves many industry segments, and may even operate in related industries