Business Strategy Quiz 1

Business Strategy Quiz 1
STUDY
PLAY
Strategic management process
The full set of commitments, decisions, and actions required for a firm to achieve strategic competitiveness and earn above-average returns.
Cost Leadership
Producing standardized products or services at costs below those of competitors
Differentiation
Manufacturing differentiated products for which customers are willing to pay a price premium
Resources
Inputs into a firm's production process like: capital equipment, skills of individuals, patents, and finances
Capabilities
Capacity of a set of resources to perform in an integrative manner. It should NOT be so simple that it is highly imitable or so complex that it defies internal steering and control.
Industrial Organization Model (I/O)
Focuses on the environment outside the firm
Resource-Based Model
Focuses on the insides of the firm
Vision
A enduring BIG picture of what the firm wants to be and, broadly, what it wants to ultimately achieve. Evokes emotions and dreams.
Mission
Specifics the business or businesses in which the firm intends to compete and the customers it intends to serve. Concrete. Most effective with it fosters strong ethical standards.
Responsibility of Strategic Leaders
People located in different parts of the firm who are using the strategic management process to help the firm reach its vision and mission.
Profit Pool
Entails the total profits earned in a industry at all points along the value chain
Opportunity
A condition in the general environment that, if exploited, helps a company achieve strategic competitiveness
Threat
A condition in the general environment that may hinder a company's efforts to achieve strategic competitiveness
Scanning
Identify early signals of environmental changes and trends
Monitoring
Detect meaning through ongoing observation of environmental changes and trends
Forecasting
Anticipate outcomes based on monitored changes and trends
Assessing
Determine the timing and importance of environmental changes and trends for firms's strategies and their management
Competitor Analysis
Identify ahead of time. Gather and interpret information about all of the companies that the firm may compete against.
Industry
A group of firms producing products that are close substitutes. Firms that influence one another.
Purpose of Internal Analysis
Understanding how to leverage a firm's resource capabilities for delivering value for above average returns.
Context of Internal Analysis
Traditional sources of advantages can be overcome by competitors' international strategies and by the flow of resources throughout the global economy
Value
Measured by product and service attributes for which customers are willing to pay
Value Chain
Shows how a product moves from the raw-material stage to customers
Business-Level Strategy
An integrated and coordinated set of commitments and actions the firm uses to gain competitive advantage by exploiting core competencies in specific product markets
Cost Leadership Strategy
An integrated set of actions taken to produce goods or services with features that are acceptable to customers at the lowest cost relative to that of competitors
Competitive Risk
Processes used to produce and distribute good or service may become obsolete due to competitors' innovations
Differentiation Strategy
An integrated set of actions taken to produce goods or services at an acceptable cost that customers perceive as being different in ways that are important to them
Focus Strategies
An integrated set of actions taken to produce goods or services that serve the needs of a particular niche market segment
Integrated Cost Leadership/Differentiation Strategy
A firm that adapts quickly to environmental changes, learns new skills and technologies, and effectively leverages its core competencies while competing against its rivals
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