Strategic Management Exam 1

Front 1

AFI Framework

Back 1

analyze, formulate, implement

helps a manager form a strategy to gain competitive advantage

Front 2

Black Swan Events

Back 2

events that are highly improbable but cause high impact

Front 3

Firm effects

Back 3

firm performance attributed to actions managers take

Front 4

industry effects

Back 4

firm performance attributed to the structure of the industry in which the firm competes

Front 5

Autonomous Actions

Back 5

strategic initiatives undertaken by lower level employees on their own often in response to an unexpected situation

Front 6

emergent strategy

Back 6

an unplanned strategic initiative bubbling up from the bottom of the organization

Front 7

intended strategy

Back 7

the outcome of a rational and structured top-down strategic plan

Front 8

mission

Back 8

description of what the organization actually does , the products and services it plans to provide, and the markets in which it will compete

Front 9

values

Back 9

ethical standards and norms that govern the behavior of individuals in the organization

Front 10

planned emergence

Back 10

strategy process that allows bottom up strategic initiatives to emerge and to be evaluated by top management

Front 11

realized strategy

Back 11

combo of emerged and intended

Front 12

resource allocation process ( RAP)

Back 12

the way a firm allocates its resources based on predetermined policies which can be critical in shaping its realized strategy

Front 13

scenario planning

Back 13

strategy planning activity in which top management envisions lots of what if scenarios

Front 14

serendipity

Back 14

pleasant surprises that have profound affect on the businesses strategic initiatives

Front 15

strategic business unit (SBU)

Back 15

a standalone division of a larger conglomerate with its own profit and loss responsibility

Front 16

strategic commitments

Back 16

large costly commitments the firms makes to achieve its mission. Long-term and difficult to reverse.

Front 17

strategy formulation

Back 17

where and how to compete

Front 18

strategy implementation

Back 18

part of the process that deals with the organization, coordination, and integration of how a strategy gets done

Front 19

top down strategic planning

Back 19

a rational, data driven strategy process through which top management attempts to program future success

Front 20

upper-echelons theory

Back 20

views organizational outcomes as reflections of top management values

Front 21

vision

Back 21

what an organization ultimately wants to accomplish, captures the company's aspirations

Front 22

co-opetition

Back 22

cooperation by competitors to achieve a strategic objective

Front 23

network effects

Back 23

positive effect (externally) that one user of a product or service has on the value of that product for other users

Front 24

Pestel Model

Back 24

categorizes and analyzes an important set of external factors (political, economic, sociocultural, technological, ecological, and legal) that might impinge upon the firm. these can create both opportunities and threats

Front 25

industry convergence

Back 25

a process where formerly unrelated industries begin to satisfy the same customer need

Front 26

strategic group

Back 26

set of companies that pursue a similar strategy within a specific industry

Front 27

strategic position

Back 27

a firms strategic profile based on the difference between value creation and cost ( V-C)

Front 28

Activities

Back 28

distinct and fine grained business processes that enable a firm to add incremental value by transforming inputs into goods and services

Front 29

capabilities

Back 29

organizational and managerial skills necessary to orchestrate a diverse set of resources and deploy them strategically

Front 30

casual ambiguity

Back 30

a situation in which case the cause and effect of a phenomenon are not readily apparent

Front 31

core competencies

Back 31

unique strengths, embedded deep within the firm that are critical to gaining and sustaining competitive advantage

Front 32

core rigidity

Back 32

a former core competency that turned into a liability because the firm failed to hone, refine, and upgrade the competency as the environment changed

Front 33

isolating mechanisms

Back 33

barriers to imitation that prevent rivals from competing away the advantage a firm may enjoy

Front 34

path dependence

Back 34

a situation in which the options one faces in the current situation are limited by decisions made in the past

Front 35

primary activities

Back 35

firm activities that add value directly by transforming inputs into outputs as the firms a product or service horizontally along the internal value chain

Front 36

resource base view

Back 36

a model that sees certain types of resources as key to superior firm performance

Front 37

resource flows

Back 37

firms level of investments to maintain or build a resource

Front 38

resource heterogeneity

Back 38

assumption the resource based view that a firm is a bundle of resources and capabilities that differ across firms

Front 39

resource immobility

Back 39

assumption in resource based view that a firm have resources that tend to be "sticky" and that do not move easily from firm to firm

Front 40

resource stocks

Back 40

firms current level of intangible resources

Front 41

social complexity

Back 41

a situation in which different social and business systems interact with one another

Front 42

support activities

Back 42

firm activities that add value indirectly but are necessary to sustain primary activities

Front 43

value chain

Back 43

internal activities a firm engages in when transforming inputs into outputs each activity adds incremental value

Front 44

VIRO Framework

Back 44

valuable, rare, costly to imitate, organized to capture value ( how to gain competitive advantage)

Front 45

blue ocean strategy

Back 45

business level strategy that successfully combines differentiation and cost leadership activities using value innovation to reconcile the inherent trade offs

Front 46

business level strategy

Back 46

goal directed actions managers take in their quest for competitive advantage

Front 47

cost leadership strategy

Back 47

generic business strategy that seeks to create the same or similar value for customers at a lower cost

Front 48

differentiation strategy

Back 48

seeks to create higher value for customers than the value that competitors make

Front 49

diseconomies of scale

Back 49

increases in cost per unit when output increases

Front 50

economies of scope

Back 50

savings that come from producing two or more outputs at less cost than producing each output individually despite using the same resources and technology

Front 51

minimum efficient scale MES

Back 51

output range needed to bring down the cost per unit as much as possible allowing a firm to stake out the lowest cost position that Is achievable through economies of scale

Front 52

scope of competition

Back 52

the size narrow or broad of the market the firm chooses to compete in

Front 53

strategic trade offs

Back 53

choices between cost or value position

Front 54

value curve

Back 54

horiszontal connection of the points of each value on the strategy canvas

Front 55

when does the value curve show that's in ineffective ?

Back 55

when it zigzags

Front 56

what is a drawback of porters five forces

Back 56

Managers cannot determine the changing speed of an industry or the rate of innovation

Front 57

porters five forces

Back 57

threat of new entrants, threat of substitutes, bargaining power of buyers, bargaining power of suppliers, intensity of competitive rivalry.

Front 58

balanced score card deals with

Back 58

customer satisfaction, financial performance, internal business process efficiency , knowledge and innovation

Front 59

core competencies should:

Back 59

provide potential access to wide variety of markets, makes significant contribution the customers perceived value, difficult for competitors to imitate.

Front 60

stake holder impact analysis

Back 60

who are the stakeholders, what are our stakeholders interests and claims, what opportunities and threats d they create, what responsibilities do we have, what should we do to address their concerns

Front 61

resource based view critical assumptions

Back 61

1) resource heterogeneity 2) resource immobility

Front 62

barriers to imitation (isolating mechanisms)

Back 62

casual ambiguity, path dependence, social complexity, intellectual property , better excepectations of future resource value

Front 63

dynamic capabilities

Back 63

create , deploy, modify reconfigure or upgrade its resource base