Study your flashcards anywhere!

Download the official Cram app for free >

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key


Play button


Play button




Click to flip

29 Cards in this Set

  • Front
  • Back
Factors inpacting competitive environment
Increase in globalization-peace between world powers, westernization of world, ease of flow of ideas, people, goods, and services

Increase in technological advances- increase in technological change, change in information and communication devices, and increase in importance of ideas
5 tasks of strategic management
1. Develop strategic mission and vision
2. Set objectives
3. Develop strategy to meet objectives (business model)
4. Implement and execute strategy
5. monitor, evaluate, and make changes to model.
Difference between a vision and a mission
Mission focuses on current business activities (what we are doing now)
Vision focuses on future business paths (where we are going)
purpose of objectives`
convert vision into action, prevent coasting by setting concrete benchmarks and performance targets.
2 kinds of objectives
Strategic- focuses on gaining long term competitive advantage in industry

FInancial- focuses on long term fnancial success

Unless in financial trouble or facing great risk, strategic usually stressed more to maintain momentum.
I/O Model of business
Industrial Organization model- focuses on the extrenal envirionments of a business in the hopes of finding an attractive environment in which a strategy can be developed and implemented using a firms assets and skills in order to acheive superior returns
Resource-based model
Focuses on unique resources or capabilities of a company in order to find an attractive market to achieve superior returns.
Levels of strategy-making-diverse company
Levels of strategy making-single-company business
corporate strategy should/involves
should- seek diversification, boost performace, find strategic fits, and develop investment priorities.

involves- repsonding to industrial changes, crafting competitive strategies, and building competencies and capabilities.
Porters 5 factors
Power of suppliers
Power of buyers
Threat of new entrants
Strength of Rivalry
Product substitutes
factors which decrease threat of new entrants
High barrier of entry due to economies of scale, high capital requirements, product differentiation
factors increasing power of buyers
Many firms in market, little differentiation, makeup large portion of sales and revenue.
factors increasing suppliers power
controlled by a small number of suppliers, limited resources available, supply crucial to process
factors increasing threat of substitutes
Lower cost/higher quality option exsists, little switching cost neccesary
factors increasing intensity of rivalry
zero sum game industry, many competitors exist, high exit costs
environmental segments
Driving forces
Those forces that will have a true impact on a market over next 1-3 years

Impact should be analyzed
How should a firm deal with Porter's five forces?
Firms should creat a strategy which insulates the 5 forces and creates a sustainable competitive advantage
FIve Key Success Factors (KSF's)
1. Specific Strategic Elements
2. Product attributes
3. resources
4. Core Competencies
5. Competitive Capabilities
COmpetitive Advantage Triangle
Comeptitive Advantage
Strategic assets and market achievements
Core Competencies
COmpetitive Capabilities
COmapny Resources
Resources (def and two types)
What a company has
Intangible-human, reputation, innovation
Tangible- Technology, Financial, Organizational, Physical
What a company does
-consists of a company's ability to send resources to accomplish as pecific function and of employees abilities and knowledge
core competencies
what a company does that seperates it from other companys. This adds value and creates a competitive advantage.

Resources and capabilities.
4 criteria for a sustainable comeptitive advantage
1. Rare
2. Valuable
3. Costly to imitate- due to history, ambiguous, or complex societal reasons.
4. Nonsubsitutable
Value Chain
The process that takes a product from raw material to final customer
Primary Activities
1. Inbound Logistics- activities surrounding the reception, storing, and dissemination of imputs to a product

2. Operations- activites surrounding the conversion of imputs into the final product

3. Outbound logistics- activities surrounding the collection, storage, and distribution of a product

4. Marketing/sales-activities enabling/inducing a consumer to buy a product

5. Service-activities that sustain or enhance a products value
Support activities in a value chain
1. Firm Infrastructure- activities relating to the entire value chain
2. human relation management- activities relating to company employees
3. technological development- activities which add value to a company's product or processes.
4. Procurement- the activities involved with obtaining a product's imputs.
Outsourcing-definition and three reasons for.
Purchasing some value creating activity from an outside supplier

1. Keeps a firm focused on other, more important areas.
2. Allows access to world class capabilities
3. Frees up needed capital.