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11 Cards in this Set
- Front
- Back
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What is a Strategy? |
A set of commitments and actions to gain competitive advantages |
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What is a competitive advantages? |
Uses a strategy that creates superior value for the customers, unable/too expensive to duplicate for competitors |
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No competitive advantages is .... |
permanent. |
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What are the 2 models of Strategic Decision making? |
Industry/Organisation - Model (External) & Resource Based - Model (Internal) |
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Industry/Organisation - models 4 underlying assumptions. |
External Environment -> Pressure and constraints that determines the strategy that would make profit. Firms assumed to control resources that are strategically relevant in their industry - and pursue strategies based on those. Resources are mobile - differences are shortlived Decision makers makes decision in the firms interests (rational, make money) |
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When does the Industry/Organisation - Model say that a company can earn above-avarage return? |
When able study the external environment as the fundation of implementing their strategy. |
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The Resource Based - Model assumes? |
Assumes that each organisation has its own unique resources and capabilities, and they are more important/influential than the external environment in selecting their strategy to earn above average return. |
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RB-Model - Components |
Resources Capabilities Core Competencies Competitive Advantages
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4 criteria resources and Capabilites must fulfil in order to become Core Competencies |
Valuable Rare Costly to imitate Nonsubstituable
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2 types of Resources |
Tangible Intangible |
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Resources Based - Model 4 underlying assumptions |
Resources and Capabilities affect firms performance, more than its structure Unique Capabilities are developed based on how they combine and use their Resources Resources and Capabilities are not highly moveable across Firms Differences in Resources and Capabilities are the basis of competitive advantages
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