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65 Cards in this Set
- Front
- Back
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Views of leadership |
Romantic- managers have complete control External control- other actors determine firm performance |
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Strategic management |
Analyses decisions and actions an organization undertakes to create and sustain competitive advantage |
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Key attributes of strategic mgt |
Direct org to overall goals Include multiple stakeholders in decision making Short term and long term perspectives Recognize trade off between efficiency and effectiveness
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Efficiency vs effectiveness |
Efficiency- low cost or doing things right Effective- doing the right things |
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Ambidexterity |
Align resources to take advantage of existing markets AND explore new opportunities |
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Intended a realized strategy |
I- decisions are determined only by analysis R- deductions also influenced by unforeseen environmental developments or constraints |
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Business level strategy |
How to compete in given business and gain competitive advantage |
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Corporate level strategy |
What businesses to compete in How to achieve synergy |
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Strategy implementation |
Carry out formulated strategy, strategic controls organizational design and leadership |
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Corporate governance |
Relationship among various participants in determining business direction Shareholders Management Board of directors |
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Shared value |
Enhance competitiveness AND economic and social conditions |
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Vision |
Massively inspiring overarching long term goal Problems- walk doesn’t match talk, irrelevance, not the holy grail, too much focus=missed opportunity, ideal future irreconciled with present |
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Mussion |
Purpose scope of operations and basis of competitive advantage |
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Strategic objectives |
Goals to operationalize mission statement Measurable. Specific. Appropriate. Realistic. Timely |
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Hard vs soft trend |
Hard- based on measurable facts events or actions Soft- might happen. Probability can be estimated |
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Competitive intelligence |
Collecting and interpreting data on competitors, defining the industry, identifying competitor strengths and weaknesses |
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Scenario analysis |
Detailed Expert assessments of societal trends. Economies. Politics. Technology. Other external dimensions |
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Segments of general environment |
Demographic. Sociocultural. Political/legal. Technological. Economic. Global |
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Crowdsourcing |
Using internet to bring many people together to collaborate on problems/ development Affects many segments of environment |
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Porters 5 forces |
Threat of new entrants Bargaining power of buyers Of suppliers Threat of substitutes Intensity of rivalry among existing firms |
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Cost disadvantages independent of scale |
Proprietary products. Favorable access to raw materials. Government subsidies. Favorable government policies |
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Problems with 5 forces model |
Managers can’t always avoid low profit margin industries Assumes zero sum game Static analysis |
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Strategic groups |
Clusters of firms that share similar strategies |
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Value chain analysis |
View organization as sequential process of value creating activities |
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Primary versus support activities |
P- inbound and outbound logistics operations marketing and sales and service S- procurement tech development hr management and general administration |
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Resource based view |
Competitive advantage is due to endowment of strategic resources tha are valuable rare costly to imitate or substitute |
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Tangible resources |
Easy to identify. Financial. Physical. Technological. Organizational |
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Intangible resources |
Human. Innovation and creativity. Reputation |
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Organizational capabilities |
Competencies or skills a firm uses to convert inputs into outputs |
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Causal ambiguity |
Competitor can not determine what the resource is/ how it can be recreated effectively |
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Social complexity |
Social engineering required is beyond capability of competitors Relationships organizational culture and relationships with suppliers and customers |
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Determining profit distribution |
Employee bargaining power Replacement costs Exit costs Managerial bargaining power |
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Financial ratios |
Short term solvency or liquidity Long term solvency Asset management- turnover Profitability Market value |
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Balanced scorecard perspectives |
Financial Customer Internal business Learning and growth |
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Limitations to scorecard |
Quick fix Insufficient commitment to learning and employees |
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Knowledge economy |
Value created through managing knowledge workers rather then physical and financial assets |
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Intellectual capitol |
Market value- book value |
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Types of capital |
Human- capabilities experience knowledge of individual Social- network of relationships Knowledge |
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Types of knowledge |
Explicit- coded documented and transferable Tacit- in employees minds based on background and experiences |
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Attracting millennials |
Don’t dodge sales pitch Let them have a life No time clocks Give hem responsibility Feedback Giving back matters |
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Developing human capital |
Encouraging widespread involvement Mentoring and sponsoring Monitoring progress and tracking development Evaluating human capital |
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Retaining human capital |
Identifying with mission and values Challenging work and stimulating environment Financial and nonfinancial rewards and incentives |
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6 areas diversity management can help |
Cost. Resource acquisition. Marketing. Creativity. Problem solving. Organizational flexibility |
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Social network analysis Closure |
Analysis of pattern of social interaction C- degree to which members of a social network have relationships with each other |
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3 levers to overcome collaboration barriers |
Unification- setting common goals People- getting the right people for the job Network- building nimble interpersonal networks |
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Network traps |
Wrong structure Wrong relationships Wrong behavior |
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Intellectual property rights |
Intangible property owned by a firm patents copyrights trademarks or trade secrets |
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Dynamic capabilities |
Capacity to build and protect competitive advantage. Knowledge assets competencies complementary assets and technologies |
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3 strategies |
Cost leadership Differentiation Focus |
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Experience curve |
Lower costs come with more experience and efficiency |
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Competitive parity |
Being on par with competitors in some product characteristic |
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Pitfalls of cost leadership |
Too much focus on 1 value chain activity Increase in cost of inputs Too easily imitated Lack of parity on differentiation Cost advantage becomes obsolete |
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Pitfalls of diferentiation |
Uniqueness not valuable Too much differentiation Too high price premium Easily imitated Dilution of brand through extension Different buyers have different perceptions |
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Pitfalls of focus strategy |
Erosion of cost advantages Competition from new entrants or imitation Too focused to satisfy buyer needs |
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Mass customization |
Unique products in small quantities at low cost |
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Profit pool |
Total profit in an industry at all points along the value chain |
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Pitfalls of combo strategies |
Can get stuck in the middle Underestimating challenges and expenses to coordinate activities in extended value chain Miscalculating sources of revenue and profit pools |
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Introduction stage strategies |
Research and development and marketing for brand awareness Develop a product and generate exposure |
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Growth stage strategies |
Marketing and sales- spurring selective demand- our product over competitor |
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Strategy at maturity |
Rivalry becomes intense Saturated market Price rather then differentiation- customers have greater understanding |
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Strategies at decline stage |
Maintain Harvest Exit Consolidate |
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Reverse positioning |
Offering product with fewer attributes at lower prices |
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Breakaway positioning |
Offer products still in the industry but perceived as different |
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Turnaround strategies |
Reversing performance decline. Reinvigorate growth Asset or cost surgery Selective product and market pruning Piecemeal productivity improvements |
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2 methods to evaluate firm performance |
Financial ratio analysis Balanced scorecard |
