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60 Cards in this Set
- Front
- Back
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Strategic Competitiveness |
achieved when a firm successfully formulates and implements a value-creating strategy |
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Strategy |
an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage |
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competitive advantage |
a firm has this when it implements a strategy that creates superior value for customers and competitors are unable to duplicate or find too costly to try to imitate |
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above average returns |
are returns in excess of what an investor expects to earn from other investments with a similar amount of risk |
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risk |
an investor's uncertainty about the economic gains or losses that will result from a particular investment |
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average returns |
returns equal to those an investor expects to earn from other investments with a similar amount of risk |
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strategic management process
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the full set of commitment, decisions, and actions required for a firm to achieve strategic competitiveness and earn above-average returns |
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global economy |
one in which goods, services, people, skills and ideas move freely across geographic borders |
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strategic flexibility |
a set of capabilities used to respond to various demands and opportunities existing in a dynamic and uncertain competitive environment |
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resources |
inputs into a firm's production process, such as capital equipment, the skills of individual employees, patents, finances and talented managers |
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capability |
the capacity for a set of resources to perform a task or an activity in an integrative manner |
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core competencies |
capabilities that serve as a source of competitive advantage for a firm over its rivals |
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vision |
a picture of what the firm wants to be and in broad terms what it wants to ultimately achieve |
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mission |
specifies the business in which the firm intends to compete and the customers it intends to serve |
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stakeholders |
the 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 firms importance |
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strategic leaders |
people located in different areas and levels of the firm using the strategic management process to select strategic actions that help the firm achieve its vision and fulfill its mission |
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organizational culture |
refers to the complex set of ideologies, symbols and core values that are shared throughout the firm and that influence how the firm conducts business |
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profit pool |
entails the total profits earned in an industry at all points along the value chain |
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general environment |
composed of dimensions in the broader society that influence an industry and the firms within it |
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industry environment |
the set of factors that directly influences a firm and its competitive actions and responses; the threat of new entrants, the power of suppliers, the power of buyers, the threat of product substitutes and the intensity of rivalry among competing firms |
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competitor analysis |
how companies gather and interpret info about their competitors |
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opportunity |
a condition in the general environment that if exploited effectively, helps a company reach strategic competitiveness |
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threat |
a condition in the general environment that may hinder a company's efforts to achieve strategic competitiveness |
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demographic segment |
is concerned with a populations size, age structure, geographic distribution, ethnic mix and income distribution |
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economic environment |
refers to the nature and direction of the economy in which a firm competes or may compete |
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political/legal segment |
the arena in which orgs and interest groups compete for attention, resources and a voice in overseeing the body of laws and regulations guiding interactions among nations as well as between firms and various local governmental agencies |
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sociocultural segment |
concerned with a societies attitudes and cultural values |
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technological segment |
includes the institutions and activities involved in creating new knowledge and translating that knowledge into new outputs, products, processes and materials |
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global segment |
includes relevant new global markets, existing markets that are changing, important international political events and critical cultural and institutional characteristics of global markets |
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physical environmental segment |
refers to potential and actual changes in the physical environment and business practices that are intended to positively respond to and deal with those changes |
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industry |
a group of firms producing products that are close substitutes |
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strategic group |
a set of firms emphasizing similar strategic dimensions and using a similar strategy |
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complementors |
are companies or networks of companies that sell complementary goods or services that are compatible with the focal firm's good or service |
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competitor intelligence |
is the set of data and information the firm gathers to better understand and anticipate competitors' objectives, strategies, assumptions and capabilities |
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global mind set |
the ability to analyze, understand and manage an internal organization in ways that are not dependent on the assumptions of a single country, culture or context |
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value |
is measured by a product's performance characteristics and by its attributes for which customers are willing to pay |
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tangible resources |
assets that can be observed and quantified |
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intangible resources |
include assets that are rooted deeply int he firm's history, accumulate over time and are relatively difficult for competitors to analyze and imitate |
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valuable capabilities |
allow the firm to exploit opportunities or neutralize threats in its external environment |
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rare capabilities |
are capabilities that few, if any competitors possess |
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costly to imitate capabilities |
capabilities that other firms cannot easily develop |
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non substitutable capabilities |
capabilities that do not have strategic equivalents |
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value chain activities |
are activities or tasks the firm completes in order to produce products and then sell, distribute and service those products in ways that create value for customers |
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support functions |
include the activities or tasks the firm completes in order to support the work being done to produce, sell, distribute and service the products they firm is producing |
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outsourcing |
the purchase of a value-creating activity or a support function activity from an external supplier |
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business level strategy |
an integrated and coordinated set of commitments and actions the firm uses to gain a competitive advantage by exploiting core competencies in specific product markets |
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market segmentation |
a process used to cluster people with similar needs into individual and identifiable groups |
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cost leadership strategy |
an integrated set of actions taken to produce goods or services with features that are acceptable to customers at the lowest cost, relative to that of competitors |
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differentiation strategy |
an integrated set of actions taken to produce goods or services ( at an acceptable cost) that customers perceive as being different in ways that are important to them |
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focus strategy |
is an integrated set of actions taken to produce goods or services that serve the needs of a particular competitive segment |
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integrated cost leadership/differentiation strategy |
involves engaging in primary value chain activities and support functions that allow a firm to simultaneously pursue low cost and differentiation |
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Total Quality Management (TQM) |
a managerial process that emphasizes an organization's commitment to the customer and to continuous improvement of all processes through problem-solving approaches based on empowerment of employees |
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corporate level strategy |
specifies actions a firm takes to gain a competitive advantage by selecting and managing a group of different businesses competing in different product markets |
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economies of scope |
the cost savings that the firm creates by successfully sharing some of its resources and capabilities or transferring one or more corporate - level core competencies that were developed in one of its business to another of its businesses |
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corporate level core competencies |
complex sets of resources and capabilities that link different businesses primarily through managerial and technological knowledge, experience and expertise |
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market power |
exists when a firm is able to sell its products above the existing competitive level or to reduce the costs of its primary and support activities below the competitive level, or both |
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multipoint competition |
exists when two or more diversified firms simultaneously compete in the same product areas or geographical markets |
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vertical integration |
exists when a company produces its own inputs (backward integration) or owns its own source of output distribution (forward distribution) |
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financial economies |
cost savings realized through improved allocations of financial resources based on investments inside or outside the firm |
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synergy |
exists when the value created by business units working together exceeds the value that those same unites create working independently |
