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8 Cards in this Set
- Front
- Back
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Strategic Management
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the process by which managers choose a set of strategies that will allow their firm to be the first choice of their customers/employees so that they can achieve the superior financial performance--highest ROIC & stock price in the industry-- their investors require
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Business Vision Statement
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values; defines the business's purpose by providing clear-cut answers to 2 questions: What group of customoers is the business's product going to satisfy?/What is the unmet need of this group of business's customers that this is going to meet; objectives
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Strategic Plan
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External environment (threats/opportunities); internal environment(strengths/weaknesses/develop plan that is compatible with the firm's values & accomplishes the firm's mission & objectives)
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Implementation of Strategic Plan
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implementation Value; a great strategic plan without flawless execution is like no plan; three ways to measure strategic plan's success if your first choice of: employees, customers, investors Highest ROIC in Industry
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Return on Invested Capital (ROIC)
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should be at least equal to the industry average; highest maximizing long run profits by profitably satisfying customers' needs efficiently & effectively
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Sustainable Competitive Advantage
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Low cost provider-offer the same products at prices below what their competitors charge & remain profitable; differentiated product-charge higher prices due to their ability to fulfill consumers' needs better than anyone else in the market
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Four Areas of Focus to maintain competitive advantage
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Superior efficiency; superior quality; superior innovation; superior customer responsiveness
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Porter's Five Forces Model
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the threat of new business entering a firms' existing market; the threat of new products entering the firm's existing market that could replace the firm's current products; the growing bargaining power of its suppliers & buyers; the leve of rivalry among existing firms in the industry
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