Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
30 Cards in this Set
- Front
- Back
- 3rd side (hint)
|
Strategy
|
Action plan for outperforming its competitors and achieving superior profitability
|
Strategy is about competing differently from rivals - doing what others don't or can't do.
|
|
|
Strategic considerations
|
How to attract and please costumers
How to compete against rivals How to position the company in the marketplace How to best respond to changing economic and market conditions How to capitalize on attractive opportunities to grow business How to achieve the company's performance targets |
|
|
|
Competitive advantage
|
Having some type of edge over rivals in attracting buyers and coping with competitive forces
Being more effective or efficient at meeting customer needs |
|
|
|
Routes to a competitive advantage
|
Giving buyers what they perceive as superior value compared to others or giving same value at lower cost to the company
|
|
|
|
What to look for when identifying a company's strategy
|
Actions to strengthen the firm's bargaining position with suppliers / distributors
Actions to gain sales and market share via more performance features, more appealing design, better quality/service, or other actions Actions to gain sales and market share with lower prices based on lower costs Actions to enter new product or geographic markets, or to exit new ones Actions to capture emerging market opportunities and defend against external threats Actions to strengthen standing and competitiveness by acquiring or merging with other companies Actions to strengthen competitiveness view strategic alliances and collaborative partnerships Actions and approaches used in managing R&D, production, sales and marketing, finances and others Actions to upgrade, build, or acquire competitively important resources and capabilites |
|
|
|
Sustainable competitive advantage
|
Providing buyers with superior value compared to rivals or offering the same value at lower cost to the firm that persists despite the best efforts of competitors to match or surpass the advantage
|
|
|
|
4 most frequent strategic approaches to gain a competitive advantage
|
1) striving to be the industry's low cost provider - cost based advantage
2) out competing rivals in different features, higher quality, wider selection, added performance, value added services, technological superiority, etc 3) offering more value for money 4) focusing if a narrow market niche within an industry |
|
|
|
Deliberate strategy
|
Consists of proactive strategy elements that are both planned and realized
|
|
|
|
Emergent strategy
|
Consists of reactive strategy elements that emerge with changing conditions
|
|
|
|
Business model
|
Management's blueprint for delivering a valuable product or service in order to generate profit
|
|
|
|
Elements of a company's business model
|
Customer value proposition - how to satisfy customer
Profit formula |
|
|
|
Process for crafting & executing strategy
|
Developing a strategic vision
Setting objectives Crafting a strategy Executing the chosen strategy Monitoring developments, evaluating performance, making corrective adjustments |
|
|
|
Strategic plan
|
Lays out a company's future direction, performance, and strategy
|
|
|
|
Strategic vision
|
Described management's aspirations for the future and delineates the company's strategic course and long term direction
|
|
|
|
Good strategic vision
|
Distinctive
Specific |
|
|
|
Strategic vision vs mission
|
Strategic vision = future aspirations
Mission = description of purpose and present business (descriptive) |
|
|
|
Values
|
The beliefs, traits, and behavioral norms that company personnel are expected to display
|
|
|
|
Qualities of good objectives
|
Quantifiable
Measurable Have a deadline |
|
|
|
Objectives
|
An organization's performance targets - specific results to achieve
|
|
|
|
Strategic intent
|
When a company relentlessly pursues an ambitious strategic objective, concentrating full force if it's resources and actions.
|
|
|
|
Financial vs strategic objectives
|
Financial objectives = financial performance goals
Strategic objectives = marketing standing and competitive position |
|
|
|
Balanced score card
|
A common method for linking financial objectives to accomplishing strategic objectives
|
|
|
|
Strategy making hierarchy
|
|
|
|
|
Corporate strategy
|
Orchestrated by CEO and other senior executives. Establishes an overall strategy for a diversified multi-business company
|
|
|
|
Business strategy
|
Building competitive advantage in a single unit
|
|
|
|
Functional strategy
|
Concerns the actions employed in managing a particular function within a business
|
|
|
|
Operating strategy
|
Concerns relativity narrow strategic initiatives for key units
|
|
|
|
Strategic plan
|
Lays out a company's future direction and business purpose, performance targets, and strategy
|
|
|
|
Why strategy evolves over time
|
Changing market conditions
Advancing technology New competitor moves Shifting buyer needs Emerging market opportunities New ideas to improve strategy |
|
|
|
3 tests to determine a winning strategy
|
1) how well does the strategy fit the company's situation
2) can the strategy achieve a sustainable competitive advantage 3) is the strategy producing results |
|
