Strategic Management

Front 1

What are the 5 dominant themes of strategy evolution?

Back 1

1. Financial Budgeting

2. Corporate Planning

3. Emergence of Strategic Management

4. Quest for Competitive Advantage

5. Adapting to Turbulence

Front 2

Why are smart people not the best with strategy?

Back 2

Because there is not one right answer. Need to be flexible, resilient and imaginative. Required being able to make choices about an uncertain future and imagine possibilities that may or may not actually exist. Great strategy is aided by diversity of thought and attitude - imaginative people who have experienced failures and successes.

Front 3

What roles dos Strategy Play?

Back 3

1. Decision Support

2. Coordinating Device

3. As a Target

4. As an Animation & Orientation

Front 4

Define Strategy:

Back 4

Strategy is: A firm's theory about how to gain competitive advantages.

Front 5

Strategic Management Process:

Back 5

1. Mission

2. Objectives

3. External and Internal Analysis

4. Strategic Choice

5. Strategic Implementation

6. Competitive advantage

Front 6

Define Objectives:

Back 6

Objectives:

Specific, measurable targets, things a firms needs to "do" to achieve its mission.

Should influence other elements in the strategic management process.

Front 7

Strategy Implementation:

Back 7

A strategy is only is good as its implementation.

The hows and the who's.

Front 8

Define Competitive Advantage:

Back 8

Competitive Advantage:

The ability to create more economic value that competitors.

Front 9

Creating Competitive Advantage is a result of :

Back 9

- Doing something different or better than competitors.

- differentiation of offerings (customers willingness to purchase products over competitors) or cost advantage.

- must be something different about offerings

- strategies must differ or there would be no difference between firms

Front 10

Explain Competitive Advantage with regards to Temporary v. Sustainable.

Back 10

Comp. Advantage results in higher profits, which attracts competition, which limited the duration of comp. advantage. therefore competitive advantage is temporary.

Sustainable if : competitors are unable to imitate the source of the advantage, or no one conceives of a better offering.

Front 11

Define Competitive Parity:

Back 11

The firm's offerings are average, no preference for firm exists, does not have cost advantage.

Front 12

Define Competitive Disadvantage:

Back 12

People ahem an aversion to the firm's offerings, may have a cost disadvantage. Outdated tech/equipment, negative reputation.

Front 13

Measuring Competitive Advantage:

Back 13

* Superior Economic Performance (evidence of comp adv.).

Accounting Measures ( ROA, ROS, ROE, that exceed industry averages.

Economic Measures, earning a return in excess of the cost of capital.

* Hard to measure the source of the advantage.

Front 14

Explain emergent v. intended strategies

Back 14

Intended Strategies: intended to be followed.

Emergent Strategies: Condition of them change or new information becomes available, managers respond and adopt emergent strategies.

Front 15

True of False: Strategy is influenced by the Firm ( the internal elements - goals, values, resources, capabilities structure and systems) and external environment ( competitors, customers and suppliers).

Back 15

True

Front 16

True of False Strategy matters and make s difference between failure and success

Back 16

True.

Front 17

How to measure cooperative advantage

Back 17

1. Accounting measures (ROA, ROE, ROS, exceed industry averages).

2. Economic measures, (earning a return in excess of cost of capital).

Front 18

Forces that influence organizations operational and managerial decision making?

Back 18

Internal (company strengths and weaknesses) and external (threats and opportunities)

Front 19

What frame work is used to analyze the external frame work?

Back 19

PESTLE ( Political, Economic, Socio-Cultural, Technological, Legal and Environmental). International Factors as well...

Front 20

What are porter's five (competitive) forces?

Back 20

1. Threat of new entry

2. Bargaining power of buyers

3. Bargaining power of suppliers,

4. Threat of substitutes

5. Intensity of rivalry.

Front 21

What factors make entering a market costly?

Back 21

1. economies of scale

2. product differentiation (e.g., brand loyalty)

3. Other cost advantages (e.g., tech, location)

4. gov regulations

Front 22

What gives buyers bargaining power?

Back 22

number of buyers is small ....