Business Strategy Chapter 1

Front 1

Integrated and coordinated (fit) set of commitments and actions (activities) designed to exploit core competencies and gain a competitive advantage (Unique Market Position)

Back 1

Strategy

Front 2

Achieved when a company formulates and implements value-creating strategy. (Creating value for the customers)

Back 2

Strategic Competitiveness

Front 3

Implemented strategy (Unique Position) that competitors are unable to duplicate or find to costly to imitate.

Back 3

Competitive Advantage

Front 4

This is sustainable over time with continuity.

Back 4

Sustainable Competitive Advantage

Front 5

Returns EQUAL to WHAT INVESTOR EXPECTS to other investments with similar risk (investor's uncertainty).

Back 5

Average Returns

Front 6

Returns in EXCESS of WHAT THE INVESTOR EXPECTS in comparison to other investments made with similar risk. (Produced by strategy)

Back 6

Above Average Returns

Front 7

Full set of commitments, decisions, and actions required for a firm to achieve strategic competitiveness and ear above average returns.

Back 7

Strategic Management Process (SMP)

Front 8

*Competitive Landscape*
The change of pace = ____
Partnerships created by ______, ____, and _____.

Back 8

Rapid
Strategic alliances, mergers, acquisitions

Front 9

The following are characteristics of what?
*Economies of scale are pursued
*Advertising budgets not as effective as before
*Change in managerial mind-set from "traditional" to more flexible and innovative
*Global arena is the regular playing field

Back 9

Competitive Landscape

Front 10

Extremely intense rivalry among competing firms, characterized by
1) Escalating and increasingly aggressive competitive moves
2) Assumptions of stability in the market place replaced by notion of continuous market instability and changes.

Back 10

Hypercompetition

Front 11

What are the two primary drivers of hypercompetition?

Back 11

The Global Economy and Technology

Front 12

*The Global Economy*
Goods, services, people, skills and ideas move _____ across geographic borders.

Back 12

Freely

Front 13

What is the world's largest single market and how many countries does it entail?1

Back 13

The EU
27 countries

Front 14

What are the three categories of technology and technological changes?

Back 14

1) Technology diffusion and disruptive technologies
2) The information age
3) Increasing knowledge intensity

Front 15

*Technological Diffusion*
____ describes how new information intensive technologies are replacing older forms.

Back 15

Perpetual innovation

Front 16

What is the primary competitive advantage with Technology diffusion?

Back 16

Speed to Market

Front 17

Technologies that destroy value of existing technology and create new markets.

Back 17

Disruptive Technology

Front 18

Involves:
*Dramatic changes over the last several years
*Major technological developments: computers, phones, AI, virtual reality
*Internet provides infrastructure for information anytime anywhere

Back 18

The Information Age

Front 19

Information, intelligence, and expertise and is the basis of technology and its application.
*Gained through experience, observations and inferences

Back 19

Increasing knowledge intensity

Front 20

Set of capabilities used to respond to various demands and opportunities existing in a dynamic and uncertain competitive environment.

Back 20

Strategic Flexibility

Front 21

*Industrial Organizational Model*
What is it's basic premise?

Back 21

External Environment explains a firm's strategic actions and performance.

Front 22

In the I/O Model, returns are determined primarily by ______. Leaders must find the right markets

Back 22

External Characteristics

Front 23

What are the the 2 limitations with the I/O Model?

Back 23

There are only two strategies (cost leadership and differentiation) and existing internal resources and capabilities are not considered significant.

Front 24

What is the basic premise of the Resource-Based Model?

Back 24

A firm's unique (internal) resources and capabilities

Front 25

What is the basis for competitive advantage for the Resource-Based Model?

Back 25

When resources are valuable , rare costly to imitate and substitutable.

Front 26

Capacity for a set of resources to perform a task or activity in an integrative manner.

Back 26

Capability

Front 27

A firm's resources and capabilities that serve as sources of competitive advantage over its rival.

Back 27

Core Competency.

Front 28

*Picture of what the firm ultimately wants to be and achieve
*An Effective ^ is the responsibility of the leader who should work with others to form it.
*More Passionate

Back 28

Vision

Front 29

Specific business(es) in which the firm intends to compete and customers it intends to serve
*more specific
*Who you are going to target and how you are going to achieve it

Back 29

Mission

Front 30

People who are affected by a firm's performance and who have claims on its performance.

Back 30

Stakeholders

Front 31

Type of Stakeholders
Includes:
Shareholders
Major suppliers of capital (ex: Banks)

Back 31

Capital Market Stakeholders

Front 32

Type of Stakeholders
Includes:
Primary Customers
Suppliers
Host Communities
Unions

Back 32

Product Market Stakeholders

Front 33

Type of Stakeholders
Includes:
Employees
Managers
Nonmanagers

Back 33

Organizational Stakeholders