Strategic Management

Front 1

Factors inpacting competitive environment

Back 1

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

Front 2

5 tasks of strategic management

Back 2

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.

Front 3

Difference between a vision and a mission

Back 3

Mission focuses on current business activities (what we are doing now)
Vision focuses on future business paths (where we are going)

Front 4

purpose of objectives`

Back 4

convert vision into action, prevent coasting by setting concrete benchmarks and performance targets.

Front 5

2 kinds of objectives

Back 5

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.

Front 6

I/O Model of business

Back 6

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

Front 7

Resource-based model

Back 7

Focuses on unique resources or capabilities of a company in order to find an attractive market to achieve superior returns.

Front 8

Levels of strategy-making-diverse company

Back 8

Corporate
Business
Functional
Operational

Front 9

Levels of strategy making-single-company business

Back 9

COrporate/Business
Functional
Operating

Front 10

corporate strategy should/involves

Back 10

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.

Front 11

Porters 5 factors

Back 11

Power of suppliers
Power of buyers
Threat of new entrants
Strength of Rivalry
Product substitutes

Front 12

factors which decrease threat of new entrants

Back 12

High barrier of entry due to economies of scale, high capital requirements, product differentiation

Front 13

factors increasing power of buyers

Back 13

Many firms in market, little differentiation, makeup large portion of sales and revenue.

Front 14

factors increasing suppliers power

Back 14

controlled by a small number of suppliers, limited resources available, supply crucial to process

Front 15

factors increasing threat of substitutes

Back 15

Lower cost/higher quality option exsists, little switching cost neccesary

Front 16

factors increasing intensity of rivalry

Back 16

zero sum game industry, many competitors exist, high exit costs

Front 17

environmental segments

Back 17

globalization
economics
politics/law
sociocultural
demographics
technology

Front 18

Driving forces

Back 18

Those forces that will have a true impact on a market over next 1-3 years

Impact should be analyzed

Front 19

How should a firm deal with Porter's five forces?

Back 19

Firms should creat a strategy which insulates the 5 forces and creates a sustainable competitive advantage

Front 20

FIve Key Success Factors (KSF's)

Back 20

1. Specific Strategic Elements
2. Product attributes
3. resources
4. Core Competencies
5. Competitive Capabilities

Front 21

COmpetitive Advantage Triangle

Back 21

Comeptitive Advantage
Strategic assets and market achievements
Core Competencies
COmpetitive Capabilities
COmapny Resources

Front 22

Resources (def and two types)

Back 22

What a company has
Intangible-human, reputation, innovation
Tangible- Technology, Financial, Organizational, Physical

Front 23

Capabilities

Back 23

What a company does
-consists of a company's ability to send resources to accomplish as pecific function and of employees abilities and knowledge

Front 24

core competencies

Back 24

what a company does that seperates it from other companys. This adds value and creates a competitive advantage.

Resources and capabilities.

Front 25

4 criteria for a sustainable comeptitive advantage

Back 25

1. Rare
2. Valuable
3. Costly to imitate- due to history, ambiguous, or complex societal reasons.
4. Nonsubsitutable

Front 26

Value Chain

Back 26

The process that takes a product from raw material to final customer

Front 27

Primary Activities

Back 27

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

Front 28

Support activities in a value chain

Back 28

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.

Front 29

Outsourcing-definition and three reasons for.

Back 29

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.