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22 Cards in this Set
- Front
- Back
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Strategic Competitiveness |
Is achieved when a firm successfully formulates and implements a value-creating strategy. |
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Strategy |
An integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage. |
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Competitive Advantage |
firm Implements a strategy that creates superior value for customers. competitors are unable to duplicate it or find it too costly to try to imitate. |
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Above-Average Returns |
Returns in excess of what an investor expects to earn from other investments with a similar amount of risk. |
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Risk |
An investor's uncertainty about the economic gains or losses that will result from a particular investment. |
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Average Returns |
Returns that equal to those an investor expects to earn from other investments wit similar amount of risk. |
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Strategic Management Process |
Is the full set of commitment, decisions, and actions required for a firm to achieve strategic competitiveness and earn above-average returns. |
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Global Economy |
Is one in which goods, services, people, skills, and ideas move freely across geographic borders. |
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Strategic Flexibility |
A set of capabilities used to respond to various demands and opportunities existing in a dynamic and uncertain competitive environment. |
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Resources |
Are inputs into a firm's production process, such as capital equipment, the skills of individual employees, patents, finances, and talented managers. |
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Capability |
The capacity for a set of resources to perform a task or an activity in an integrative manner. |
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Core Competencies |
Capabilities that serve as a source of competitive advantage for a firm over its rivals. |
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Vision |
Is a picture of what the firm wants to be and, in broad terms what it wants to ultimately achieve. |
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Mission |
Specifies the businesses in which the firm intends to compete and the customer it intends to serve. |
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Stakeholders |
Are the individuals, groups, and organizations that can affect the firm's vision and mission, are affected by the strategic outcomes achieved, and have enforceable claims on the firm's performance. |
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Strategic Leaders |
People located in different areas and levels of the firm using the strategic management process to select strategic actions that help the firm achieve its vision and fulfill its mission. |
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Organizational Culture |
Refers to the complex set of ideologies, symbols, and core values that are shared throughout the firm and that influence how the firm conducts business. |
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Profit Pool |
Entails the total profits earned in an industry at all points along the value chain. |
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Components of the External Environment |
1. The General Environment 2. The Industry Evironment 3. The Competitor Environment |
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The I/O Model for Above-Average Returns |
1. Study the external environment 2. Locate an industry with high potential for above-average returns 3. Identify the strategy used by the attractive industry 4. Develop or acquire assets and skills 5. Use the firm's strengths to implement the strategy |
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The Resource-Based Model for Above-Average Returns |
1. Identify the firm's resources. Study strengths and weaknesses 2. Determine the firm's capabilities 3. Determine the potential of the firm's resources 4. Locate an attractive industry 5. Select a strategy to best utilize its resources and capabilities |
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Value Chain |
Activities a firm does to make a product. Then sell, distribute, and service the product. |
