Mgt 495 Test 1

Front 1

Strategy

Back 1

the action plan/game plan or competitive moves and business approaches that managers are employing to compete successfully, improve performance, and grow the business

Front 2

Competitive advantage

Back 2

ability to meet customer needs more effectively, with products or services that customers value more highly, or more efficiently, at lower cost

Front 3

Sustainable competitive advantage

Back 3

elements of the strategy that give buyers lasting reasons to prefer a company’s products or services over those of competitors

Front 4

Deliberate (proactive) strategy

Back 4

consists of strategy elements that are both planned and realized as planned

Front 5

Emergent (reactive) strategy

Back 5

consists of new strategy elements that emerge as changing conditions warrant

Front 6

Business model

Back 6

sets forth the economic logic for making money in business, give the company’s strategy.

Front 7

Winning Strategy Must pass these three tests

Back 7

Fit Test
Competitive Advantage Test
Performance Test

Front 8

Fit Test

Back 8

the strategy has to be well matched to industry and competitive conditions, a company’s best market opportunities, and other pertinent aspects of the business

Front 9

Competitive Advantage Test

Back 9

winning strategy enable a company to achieve a long-lasting competitive advantage over key rivals

Front 10

Performance Test

Back 10

2 performance indicators tell the caliber of a company’s strength:
a. Profitability and financial strength
b. Competitive strength and market standing

Front 11

Strategic vision

Back 11

management’s aspirations for the future and delineates the company’s strategic course and long-term direction

Front 12

Mission statement

Back 12

– describes the company’s current business and purpose
o “who we are, what we do, and why we are here”

Front 13

Values

Back 13

– beliefs, traits, and behavioral norms that company personnel are expected to display in conducting the company’s business and pursuing its strategic vision and mission

Front 14

Objectives

Back 14

organization’s performance targets; specific results management wants to achieve

Front 15

Financial objectives

Back 15

the financial performance targets management has established for the organization to achieve

Front 16

Strategic objectives

Back 16

target outcomes that indicate a company is strengthening its market standing, competitive vitality, and future business prospects

Front 17

Balanced Scorecard

Back 17

– a tool that is widely used to help a company achieve its financial objectives by linking them to specific objectives derived from the company’s business model

Front 18

Strategic plan

Back 18

lays out its future direction and business purpose, performance targets, and strategy

Front 19

Strategic intent

Back 19

pursues an exceptionally ambitious strategic objective, committing to do whatever it takes to achieve the goals

Front 20

3 Steps of a Dynamic Industry Analysis

Back 20

1. Identifying the drivers of change
2. Assessing whether the drives of change are acting to make the industry more or less attractive
3. Determining what strategy changes are needed to prepare for the impacts of the anticipated change

Front 21

Strategic group

Back 21

cluster of industry rivals that have similar competitive approaches and market positions

Front 22

Strategic group mapping

Back 22

technique for displaying the different market or competitive positions that rival firms occupy in the industry

Front 23

Competitive intelligence

Back 23

helps managers avoid the damage to sales and profits that comes form being caught napping by the surprise moves of rivals

Front 24

Key success factors

Back 24

the strategy elements, product and service attributes, operational approaches, resources, and competitive capabilities with the greatest impact on competitive success in the marketplace

Front 25

Competitive assets

Back 25

determinant of its competitiveness and ability to succeed in the marketplace

Front 26

Resource and capability analysis

Back 26

powerful tool for sizing up a company’s competitive assets and determining if they can support a sustainable competitive advantage over market rivals

Front 27

Resource

Back 27

a competitive asset owned or controlled by a company

Front 28

Capability

Back 28

capacity of a firm to perform some activity proficiently

Front 29

Resource bundle

Back 29

a linked and closely integrated set of competitive assets centered around one or more cross-functional capabilities

Front 30

Sustainable competitive advantage

Back 30

an advantage over market rivals that persists despite efforts of the rivals to overcome it

Front 31

Social complexity & causal ambiguity

Back 31

2 factors that inhibit that ability of rivals to imitate a firm’s most valuable resources and capabilities

Front 32

Dynamic capability

Back 32

capacity of a company to modify its existing resources and capabilities or create new ones

Front 33

Core Competence

Back 33

an activity that a company performs proficiently that is also central to its strategy and competitive success

Front 34

Distinctive Competence

Back 34

competitively important; activity that a company performs better than its rivals

Front 35

Benchmarkin

Back 35

potent tool for improving a company’s own internal activities that is based on learning how other companies perform them and borrowing their “best practices”

Front 36

Cost driver

Back 36

a factor that has a strong influence on a company’s costs