1.
Basis for Objectives & Strategies: 1. Internal strengths/weaknesses
2. External opportunities/threats
3. Clear statement of mission
2.
Controlling involves: 1. Establish performance standards
2. Measure individual and organizational performance
3. Compare actual performance to planned performance standards
4. Take corrective action
3.
Distinctive Competencies: 1. Firm's strengths that cannot be easily matched or imitated by competitors
2. Building competitive advantage involves taking advantage of distinctive competencies
4.
Figure: Value Chain: 
5.
Financial Ratio Analysis: Exemplifies complexity of relationships among functional areas of the business
6.
Functions of Management: 1. Planning - Strategy Formulation
2. Organizing - Strategy Implementation
3. Motivating - Strategy Implementation
4. Staffing - Strategy Implementation
5. Controlling - Strategy Evaluation
7.
How to prepare an Internal Audit?: 1. Managers and employees from all areas provide information
2. A team of managers then selects 10 to 15 key organizational strengths and weaknesses to focus on
8.
Involvement in performing an internal strategic-management audit provides a vehicle for understanding the nature and effect of decisions in other functional business areas of the firm: 
9.
Motivation involves: 1. Influencing to accomplish specific objectives
2. Four components include:
• Leadership
• Group dynamics
• Communication
• Organizational change
10.
Organizing involves: 1. Achieves coordinated effort
2. Defines task & authority relationships
3. Determines who does what
4. Determines who reports to whom
11.
Planning involves: 1. Developing a mission
2. Forecasting future events and trends
3. Establishing objectives
4. Choosing strategies to pursue
5. Synergy
- Can develop through planning
- Exists when everyone pulls together as a team that knows what it wants to achieve
12.
RBV - Empirical Indicators: 1. Rare
2. Hard to imitate
3. Not easily substitutable
13.
RBV - Three All-Encompassing Categories: 1. Physical resources
2. Human resources
3. Organizational resources
14.
Resource Based View (RBV): Approach to Competitive Advantage
- Internal resources are more important than external factors
15.
Staffing involves: 1. Personnel management (Recruiting, Interviewing, Testing, Selecting, Orienting, Training, Developing, Caring for)
2. Human resource management (Evaluating, Rewarding, Disciplining, Promoting, Transferring, Demoting, Dismissing)
16.
The Internal Audit Identify strengths and weaknesses in...: 1. Management
2. Marketing
3. Finance and accounting
4. Production and operations
5. Research and development
6. Management information systems
17.
Transforming Value Chain Activities into Sustained Competitive Advantage: Steps involved:
1. Value Chain Activities Are Identified and Assessed
2. Core Competencies Arise in Some Activities
3. Some Core Competencies Evolve into Distinctive Competencies
4. Some Distinctive Competencies Yield Sustained Competitive Advantages
18.
Value Chain Analysis: 1. Core competencies
2. Distinctive competencies
3. Benchmarking
19.
What compares the value chain analysis of rival firms?: 1. Purchasing raw materials
2. Manufacturing products
3. Marketing products
