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30 Cards in this Set

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Strategy
Action plan for outperforming its competitors and achieving superior profitability
Strategy is about competing differently from rivals - doing what others don't or can't do.
Strategic considerations
How to attract and please costumers
How to compete against rivals
How to position the company in the marketplace
How to best respond to changing economic and market conditions
How to capitalize on attractive opportunities to grow business
How to achieve the company's performance targets
Competitive advantage
Having some type of edge over rivals in attracting buyers and coping with competitive forces

Being more effective or efficient at meeting customer needs
Routes to a competitive advantage
Giving buyers what they perceive as superior value compared to others or giving same value at lower cost to the company
What to look for when identifying a company's strategy
Actions to strengthen the firm's bargaining position with suppliers / distributors

Actions to gain sales and market share via more performance features, more appealing design, better quality/service, or other actions

Actions to gain sales and market share with lower prices based on lower costs

Actions to enter new product or geographic markets, or to exit new ones

Actions to capture emerging market opportunities and defend against external threats

Actions to strengthen standing and competitiveness by acquiring or merging with other companies

Actions to strengthen competitiveness view strategic alliances and collaborative partnerships

Actions and approaches used in managing R&D, production, sales and marketing, finances and others

Actions to upgrade, build, or acquire competitively important resources and capabilites
Sustainable competitive advantage
Providing buyers with superior value compared to rivals or offering the same value at lower cost to the firm that persists despite the best efforts of competitors to match or surpass the advantage
4 most frequent strategic approaches to gain a competitive advantage
1) striving to be the industry's low cost provider - cost based advantage

2) out competing rivals in different features, higher quality, wider selection, added performance, value added services, technological superiority, etc

3) offering more value for money

4) focusing if a narrow market niche within an industry
Deliberate strategy
Consists of proactive strategy elements that are both planned and realized
Emergent strategy
Consists of reactive strategy elements that emerge with changing conditions
Business model
Management's blueprint for delivering a valuable product or service in order to generate profit
Elements of a company's business model
Customer value proposition - how to satisfy customer

Profit formula
Process for crafting & executing strategy
Developing a strategic vision

Setting objectives

Crafting a strategy

Executing the chosen strategy

Monitoring developments, evaluating performance, making corrective adjustments
Strategic plan
Lays out a company's future direction, performance, and strategy
Strategic vision
Described management's aspirations for the future and delineates the company's strategic course and long term direction
Good strategic vision
Distinctive
Specific
Strategic vision vs mission
Strategic vision = future aspirations
Mission = description of purpose and present business (descriptive)
Values
The beliefs, traits, and behavioral norms that company personnel are expected to display
Qualities of good objectives
Quantifiable
Measurable
Have a deadline
Objectives
An organization's performance targets - specific results to achieve
Strategic intent
When a company relentlessly pursues an ambitious strategic objective, concentrating full force if it's resources and actions.
Financial vs strategic objectives
Financial objectives = financial performance goals
Strategic objectives = marketing standing and competitive position
Balanced score card
A common method for linking financial objectives to accomplishing strategic objectives
Strategy making hierarchy
Corporate strategy
Orchestrated by CEO and other senior executives. Establishes an overall strategy for a diversified multi-business company
Business strategy
Building competitive advantage in a single unit
Functional strategy
Concerns the actions employed in managing a particular function within a business
Operating strategy
Concerns relativity narrow strategic initiatives for key units
Strategic plan
Lays out a company's future direction and business purpose, performance targets, and strategy
Why strategy evolves over time
Changing market conditions

Advancing technology

New competitor moves

Shifting buyer needs

Emerging market opportunities

New ideas to improve strategy
3 tests to determine a winning strategy
1) how well does the strategy fit the company's situation

2) can the strategy achieve a sustainable competitive advantage

3) is the strategy producing results