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33 Cards in this Set
- Front
- Back
Integrated and coordinated (fit) set of commitments and actions (activities) designed to exploit core competencies and gain a competitive advantage (Unique Market Position)
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Strategy
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Achieved when a company formulates and implements value-creating strategy. (Creating value for the customers)
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Strategic Competitiveness
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Implemented strategy (Unique Position) that competitors are unable to duplicate or find to costly to imitate.
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Competitive Advantage
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This is sustainable over time with continuity.
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Sustainable Competitive Advantage
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Returns EQUAL to WHAT INVESTOR EXPECTS to other investments with similar risk (investor's uncertainty).
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Average Returns
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Returns in EXCESS of WHAT THE INVESTOR EXPECTS in comparison to other investments made with similar risk. (Produced by strategy)
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Above Average Returns
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Full set of commitments, decisions, and actions required for a firm to achieve strategic competitiveness and ear above average returns.
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Strategic Management Process (SMP)
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*Competitive Landscape*
The change of pace = ____ Partnerships created by ______, ____, and _____. |
Rapid
Strategic alliances, mergers, acquisitions |
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The following are characteristics of what?
*Economies of scale are pursued *Advertising budgets not as effective as before *Change in managerial mind-set from "traditional" to more flexible and innovative *Global arena is the regular playing field |
Competitive Landscape
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Extremely intense rivalry among competing firms, characterized by
1) Escalating and increasingly aggressive competitive moves 2) Assumptions of stability in the market place replaced by notion of continuous market instability and changes. |
Hypercompetition
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What are the two primary drivers of hypercompetition?
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The Global Economy and Technology
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*The Global Economy*
Goods, services, people, skills and ideas move _____ across geographic borders. |
Freely
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What is the world's largest single market and how many countries does it entail?1
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The EU
27 countries |
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What are the three categories of technology and technological changes?
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1) Technology diffusion and disruptive technologies
2) The information age 3) Increasing knowledge intensity |
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*Technological Diffusion*
____ describes how new information intensive technologies are replacing older forms. |
Perpetual innovation
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What is the primary competitive advantage with Technology diffusion?
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Speed to Market
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Technologies that destroy value of existing technology and create new markets.
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Disruptive Technology
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Involves:
*Dramatic changes over the last several years *Major technological developments: computers, phones, AI, virtual reality *Internet provides infrastructure for information anytime anywhere |
The Information Age
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Information, intelligence, and expertise and is the basis of technology and its application.
*Gained through experience, observations and inferences |
Increasing knowledge intensity
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Set of capabilities used to respond to various demands and opportunities existing in a dynamic and uncertain competitive environment.
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Strategic Flexibility
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*Industrial Organizational Model*
What is it's basic premise? |
External Environment explains a firm's strategic actions and performance.
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In the I/O Model, returns are determined primarily by ______. Leaders must find the right markets
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External Characteristics
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What are the the 2 limitations with the I/O Model?
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There are only two strategies (cost leadership and differentiation) and existing internal resources and capabilities are not considered significant.
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What is the basic premise of the Resource-Based Model?
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A firm's unique (internal) resources and capabilities
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What is the basis for competitive advantage for the Resource-Based Model?
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When resources are valuable , rare costly to imitate and substitutable.
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Capacity for a set of resources to perform a task or activity in an integrative manner.
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Capability
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A firm's resources and capabilities that serve as sources of competitive advantage over its rival.
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Core Competency.
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*Picture of what the firm ultimately wants to be and achieve
*An Effective ^ is the responsibility of the leader who should work with others to form it. *More Passionate |
Vision
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Specific business(es) in which the firm intends to compete and customers it intends to serve
*more specific *Who you are going to target and how you are going to achieve it |
Mission
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People who are affected by a firm's performance and who have claims on its performance.
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Stakeholders
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Type of Stakeholders
Includes: Shareholders Major suppliers of capital (ex: Banks) |
Capital Market Stakeholders
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Type of Stakeholders
Includes: Primary Customers Suppliers Host Communities Unions |
Product Market Stakeholders
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Type of Stakeholders
Includes: Employees Managers Nonmanagers |
Organizational Stakeholders
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