Chapter 1 Strategic Management and Strategic Competitiveness
Terms in this set (30)
Achieved when a firm successfully formulates and implements a value creating strategy.
An integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage.
When a firm implements a strategy that creates superior value for customers and that competitors are unable to duplicate or find it too costly to try to imitate.
Returns in excess of what an investor expects to earn from other investments with a similar amount of risk.
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 commitments, decisions, and actions required for a firm to achieve strategic competitiveness and earn above-average returns.
Analysis, Strategy & Performance
Describes competition that is excessive such that it creates coherent instability and necessitates constant disruptive change for firms in the competitive landscape.
One 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.
The External Environment
The general environment
The industry environment
The competitor environment
An Attractive Industry
An industry whose structural characteristics suggest above-average returns.
Selection of a strategy linked with above-average returns in a particular industry.
Assets and Skills
The resources needed to implement a chosen strategy.
Selection of strategic actions linked with effective implementation of the chosen strategy.
The earning of above-average returns.
Porter's Five Forces
Suppliers, Buyers, Competitive Rivalry among firms currently in the industry, Product Substitutes, & Potential Entrants to the Industry.
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.
Resources to Core Competencies
Costly to imitate
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 consumers it intends to serve.
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.
Capital Market Stakeholders
Shareholders & Major suppliers of capital (banks).
Product Market Stakeholders
Primary Customers, Suppliers, Host Communities, & Unions
Employees, Managers, & Nonmanagers
People located in different areas and levels of the firm using the strategic management process to help he 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.