Ch. 1: Strategic Management & Strategic Competitiveness
Terms in this set (18)
is achieved when a firm successfully formulates & implements a value-creating strategy
an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage.
achieved when a firm implements a strategy that creates superior value for customers and competitors are unable to duplicate or find too costly to try to imitate.
are returns in excess of what an investor expects to earn from other investments with a similar amount of risk
is an investor's uncertainty about the economic gains or losses that will result from a particular investment
returns equal to those an investor expects to earn from other investments with a similar amount of risk
strategic management process
the full set of commitment, decisions, and actions required for a firm to achieve strategic competitiveness and earn above-average returns.
an economy in which goods, services, people, skills, and ideas move freely across geographic borders.
a set of capabilities used to respond to various demands and opportunities existing in a dynamic and uncertain competitive environment
inputs into a firm's production process, such as capital equipment, the skills of individual employees, patents, finances, and talented managers.
the capacity for a set of resources to perform a task or an activity in an integrative manner
capabilities that serve as a source of competitive advantage for a firm over its rivals
a picture of what the firm wants to be and, in broad terms, what it wants to ultimately achieve
specifies the businesses in which the firm intends to compete and the customers it intends to serve
the individuals, groups, and organizations that can affect the firm's vision and mission, are affected by the strategic outcomes achieved, and have enforceable claims on the firm's performance. (3 groups: Capital Market Stakeholders, Product Market Stakeholders, Organizational Stakeholders)
people located in different areas and levels of the firm using the strategic management process to select strategic actions that help the firm achieve its vision and fulfill its mission
refers to the complex set of ideologies, symbols, and core values that are shared throughout the firm and that influence how the firm conducts business.
entails the total profits earned in an industry at all points along the value chain