Term
| Strategic Competitiveness |
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Definition
| achieved when a firm successfully formulates and implements value creating strategy |
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Term
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Definition
| integrated and coordinated set of commitments and actions designed to exploit core competenices and gain competitive advantage |
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Term
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Definition
| firm implements a strategy competitors are unable to duplicate or find it tooo costly to implement |
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Term
| Strategic Management Process |
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Definition
| full set of commitments, decisions and actions required for a firm to achieve strategic competitiveness and earn above-average returns |
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Term
| Implementing strategic Management Process (3) |
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Definition
1. Analyze internal and external environments to determine resources, capabilities, and core-competencies
2. Use this info to develop vision and mission and formulate the strategy
3. Implement the Strategy by taking actions toward competitive advantage and above average returns |
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Term
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Definition
| Describes 21st century competitive landscape |
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Term
| I/O Model of Above Average Returns |
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Definition
| Explains external environment's dominant influence on a firm's strategic actions. |
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Term
| Four Assumptions of I/O Model |
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Definition
1. external environment is assumed to impose pressures and constraints that determine strategies that would result in above averge returns
2. Most firms competing within an industry or within a certain segment of that industry are assumed to control similar strategically relevant resrouces and to pursue similar strategies in light of those resources
3. resources used to implement strategies are assumed to be highly monile acroos firms so any differences would be short lived
4. organizational decision makers are assumed to be rational and committed to acting in the firm's best interests as shown by their profit-maximizing behaviors |
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Term
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Definition
1. Study external environemnt
2. locate an industry with high potential for above-average returns
3. Identify strategy called for by the attractive industry to produce above-average returns
4. develop or acquire assets and skills needed to implement the strategy
5. Use firm's strengths to implement strategy |
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Term
| Resources, capabilities, and core competincies |
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Definition
| resources are inputs into firm's production. Capability is capacity for a set of resources to perform a task. Core competencies are capabilities that serve as a source of competitve advantage for a firm over its rivals |
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Term
| Capabilities should be neither...nor... |
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Definition
| too simple to copy nor too complex that it defies internal steering and control |
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Term
| Resource Based Model of Above Average Returns |
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Definition
1. Identify Resources
2. Determine Capabilities
3. Determine potential of the firm's resources and capabilities in term of a competitive advantage
4. Locate Attractive Industry
5. Select a strategy that best allows the firm to utilize its resources and capabilities relative to opportunities in the external environment |
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Term
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Definition
| picture of what the firm wants to be and what it wants to ultimately achieve |
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Term
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Definition
| Specifies the business or businesses in which the firm intends to compete and the customers it intends to serve |
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Term
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Definition
| idividuals and groups who can affect and are affected by the strategic outcomes achieved and who have enforeable claims on a firm's perofrmance |
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Term
| Three types of stakeholders |
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Definition
capital market
product market
organizational |
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Term
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Definition
| people located in different parts of the firm using strategic management process to help the firm reach its vision and mission |
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Term
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Definition
| complex set of ideologies, symbols, and core values that are shared throughout the firm and that influence how the firm conducts business |
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Term
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Definition
| entails the total profits earned in an industry at all points along the value chain |
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Term
| 4 steps in identifying profit pool |
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Definition
1.Define boundaries
2. Estimate pool's overall size
3. Estimate the size of value-chain activity in the pool
4. Reconcile calculations |
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Term
| Current Drivers of today's competitive landscap |
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Definition
| Globalization of industries and rapid and significant technological changes |
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Term
| Strategic Leader work demands... |
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Definition
| decision trade-offs, between attractive alternatives. They use straegic management process to help firm reach its vision |
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Term
| Elements of Strategic Management Process |
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Definition
| Take strategic inputs (external and internal environment) and make a vision and mission. Then Use strategic actions (formulating strategy and implementing strategy) to create a strategic outcome (ideally above average returns). Use feedback to restart the cycle |
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Term
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Definition
| composed of dimensions in the broader society that influence in industry and the firms within |
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Term
| 6 Segments of General Environment |
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Definition
Demographic
Economic
Political/Legal
Sociocultural
Technological
Global |
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Term
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Definition
| set o factors that directly influence a firm and its competitive actions and competitive responses |
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Term
| 5 aspects of industry environment |
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Definition
1 threat of new entrants
2. power of suppliers
3. power of buyers
4. threat of product substitutes
5. intensity of rivalry among competitors |
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Term
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Definition
| How companies analyze their competitors |
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Term
| Components of External Environment Analysis |
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Definition
Scanning-Identifying early signals of environmental changes and trends
Monitoring-Detecting meaning through ongoing observations of environmental changes
Forecasting-Developing a projection of anticipated outcomes bbased on monitored changes and trends
Assessing-Determining the timing and importance of environmental changes and trends for firms' strategies and management |
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Term
| Aspects of Threat of New Entrants |
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Definition
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Term
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Definition
Economies of scale
Product differentiation
Capital Requirements
Switching Costs-oone-time costs associated with moving to another supplier
Access to distribution channels
Cost disadvantages independent of scale-propetieral technology
Government Policy |
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Term
| Supplier Group is powerful when |
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Definition
it is dominated by a few large companies and is more contentrated than the industry to which it sells
no satisfactory substitute products
Industry firms are not significant customers
Suppliers' goods are critical to marketplace success
Effectiveness of suppliers products has created high switching costs
Poses as a credibel threat to integrate forward into buyers industry |
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Term
| Bargaining Power of Buyers |
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Definition
Purchase a large portion of industry ouput
sales of the product being purchased account for a significant portion of seller's annual revenues
could switch t oanother product at little, to no cost
industry's products are undifferentiated or standardized. |
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Term
| Intensity of rivalry amongst competitors |
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Definition
Equally balance competitors
slow industyr growth
High fixed costs-This can lead to oversupply in the industry
Lack of differentiation or low switching costs
High Strategic Stakes-
High Exit Barriers-specialized assets and governmental restrictions |
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Term
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Definition
high entry barriers
suppliers an dbuyers with low bargaining power
few competitive threats from product substitutes
moderate rivalry |
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Term
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Definition
low entry barriers
suppliers and buyers with strong powers
strong competitice threats from substitutes
intense rivalry |
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Term
| Four Goals of Competitor Nalysis |
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Definition
1. What drives them (shown by future objectives)
2. What competitor is doing (current strategy)
3 What competitor believes about the industry (shown by assumptions
4. Competitor Capabilities (shown by strength and weakness) |
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Term
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Definition
| network of companies that sells complementary goods or services or are compatible with the focal firms own product or service |
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Term
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Definition
| set of firms emphasizing similar strategic dimensions to use a similar strategy |
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Term
| Three Factors of Sustainability of Competitive Advantage |
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Definition
1 Rate of core competence obscelensces because of environment changes
2 Availability of substitutes for core competence
3 Imitability of core competence |
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Term
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Definition
| ability to study internal environment in ways that are not dependent on a single country culture or context |
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Term
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Definition
| Measured by a product's performance characteristics and by its attributes for which customers are willing to pay |
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Term
| Four Criteria of Sustainable Advantage |
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Definition
Valuable
Rare
Costly to Imitate
Nonsubstitutable |
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Term
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Definition
| innovateively bundling and leverage resources and capabilities |
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Term
| Risks of internal analysis |
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Definition
| Managers face uncertainty when looking at landscape, this is because of complexity of the environment and how everything interconnects. Deciding how to deal with all of this leads to intraorganizational conflict |
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Term
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Definition
Assets that can be seen and quantified
-Financial Resources
-Organizational Resources
-Physical Resources
-Technological Resources |
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Term
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Definition
Assets rooted in firm history and are accumulated over time
-Human Resources
-Innovation Resources
-Reputational Resources |
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Term
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Definition
| When resources are integrated to achieve a specific goal |
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Term
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Definition
| capabilities that serve as a source of competitive advantage for a firm over its rivals |
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Term
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Definition
| resources and capabilities that inhibit firm progress |
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Term
| 4 Criteria of core competencies |
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Definition
valuable-allow firm to exploit opportunity or neutralize threats in its external environment
Rare-capabilities that few if any competitors possess
Costly to Imitate
Nonsubstitutable-Do not have strategic equivalents |
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Term
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Definition
| an integrated and coordinated set of commitments and actions the firm uses to gain a competitive advanage by exploiting core competencies in specific product markets |
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Term
| Three questions of Business Level Strategy |
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Definition
1. Who is served
2. What needs target customers have
3. How those needs are satisfied |
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Term
| Three Dimensions of managing relationship with customers |
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Definition
1. reach-firms access to customer
2. Richness-depth and detail of flow of information between the firm and the customer
3 Affiliation-concerned with facilitating useful interactions with customers. |
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Term
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Definition
| process used to cluster people with similar needs into indivudal and identifiable groups |
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Term
| Purpose of Business level Strategy |
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Definition
| to create differences between the firm's position and those of competitors. Means the firm msut decide if it wants to perform activities differently or perform different activities |
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Term
| 5 Types of Business Level Strategies |
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Definition
Cost Leadership
Differentiation
Focused Cost Leadership
FOcused Differentiation
Integrated cost Leadership/Differentiation |
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Term
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Definition
| integrated set of actions taken to produce goods or services with features that are acceptable to customers at the lowest cost. Often logistics help with this. |
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Term
| 5 Forces of Cost Leadership |
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Definition
Rivalry-They cut costs and have good logistics
Customer Bargaining-Low prices drive out competitors, so they can later raise them
Supplier Bargain-Higher margins allow more flexibility to pay price increases. Also, one who purchases large quantities will ahve power
Potential Entrants-New entrants must be willing to accept average returns in order to compete with main player.
Product Substitutes-Ability to lower prices when needed
Risks-Imitation, not enough focus on customer needs, and obsolete processes from competitor innovation |
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Term
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Definition
| Integrated set of actions taken to produce goods or services that customers perceive as being different in ways that are important to them |
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Term
| 5 Forces of Differentiation |
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Definition
Rivalry-Builds brand loyalty so they are less sensitive to price flucuations
Customer Buying Power-Low because these products have differentiating features
Supplier Bargaining Power-High margins and customer insensitivity allow them to react to price increases
Product Substitutes-Brand Loyalty
Risks-prices could be too high, reinvestment is expensive, can narrow customer perception, conterfeiting of the project |
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Term
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Definition
| integrated set of actions taken to produce goods or serices that serve the needs of a particular competitive segment |
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Term
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Definition
| Ikea is low cost but better quality because they do not ship and have customers assemble their own furniture |
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Term
| Focused Differentiation Strategy |
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Definition
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Term
| Risks of Focus Strategy (3) |
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Definition
1. Competitor could focus more
2.COmpetitors could move into the focus
3. Focus of customers could change |
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Term
| Integrated Cost Leadership/Differentiation (3 Characteristics) |
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Definition
1. Flexible Manufacturing Systems-flexibility of human, physical, and information resources. Allows quicker change in customer needs
2. Information Networks-CRM
3. Total Quality Management System-managerial innovation that emphasizes an organization's total commitment to the customer and to continuous improvement of every process through the use of data-driven prblem solving approaches based on empowerment of employee groups and teams |
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Term
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Definition
1. Increase customer Satisfaction
2. Cut Costs
3. Reduce amount of time required to introduce innovative products in the marketplace |
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Term
| Risks of Integrated Leadership Differentiation Strategy |
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Definition
1. Difficult for firms to perform primary and support activities in ways that allow them to produce relatively inexpensive products with levels of differentiation that create value for the target customer
Firms can sometimes get stuck in the middle and not really do anythign |
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Term
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Definition
| firms operating in the same market, offering similar products, and targeting similar customers |
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Term
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Definition
| Ongoing set of competitive actions and competitive responses occurring between competitors as they compete against each other for an advantageous market position |
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Term
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Definition
| Set of competitive actions and competitive responss the firm takes to build or defend its competitive advantages and to improve its market positions |
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Term
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Definition
| occurs when firms compete against each other in several product or geographic markets |
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Term
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Definition
| refer to all competitive behaviors-that is, the total set of actions and responses taken by all firms competing within a market |
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Term
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Definition
Market Commonality
Resource Similarity |
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Term
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Definition
| number of firms with which the firm and competitor are jointly involved and the degree of importance of the individual markets to each |
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Term
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Definition
| Extent to which the firm's tangible and intangible resources are comparable to a competitor's in terms of both type and amount |
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Term
| Drivers of Competitive Action and Responses |
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Definition
Awareness-knowing the degree of interdependence between firms
Motivation-Firms incentive to action
Ability-Firm ability to respond |
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Term
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Definition
| strategic or tactical action the firm takes to build or defend its competitive advantages |
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Term
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Definition
| strategic or tactical action the firm takes to counter the effects of a competitor's competitive action |
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Term
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Definition
| market-based move that involves a significant commitment of organizational resources and is difficult ot implement and reverse |
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Term
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Definition
| market-bsed move that is taken to fine tine a strategy and it involves fewer resources and is easy to implement and reverse |
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Term
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Definition
| firm that takes an initial competitive action in order to build or defend its competitive advantages or improve market position |
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Term
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Definition
earn anove-average returns
gain loyalty of customers who may become committed to goods or services of the firm that first made them available
2. market share that can be difficult for competitors to take during future coompetitive rivalry |
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Term
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Definition
firm that respons to the first mover's competitive action, typically through imitation.
They study customer reaction to product innovation and They also develop more efficient products |
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Term
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Definition
Firm that respons to competitive action, but only after considerable time has elapsed and after first and second mover
Often leads to average returns |
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Term
| Small firms are more likely to do more competitive responses more quickly than large firms |
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Definition
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Term
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Definition
| exists when firm's goods or services meet customer expectations |
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Term
| Firms are most likely to respond to competitor action when...(3) |
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Definition
1. Action leads to better use of competitor's capabilities to gain or produce stronger competitive advantages or an improvement in market position
2. Action damages the firm's ability to use its capabilities to create or maintain an advantage
3. Firm's market position becomes less defensible |
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Term
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Definition
| markets in which the firm's competitive advantages are shielded from imitation for what are commonly long periods of time and where imitation is costly |
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Term
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Definition
| markets in which the firm's competitive advantages aren't shielded from imitations and where imitation happens quickly and perhaps somewhat inexpensively |
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Term
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Definition
markets in which the firm's competitive advantages are moderately shielded from imitation and where imitation is moderately costly
Apparently coke and pepsi
Innovation can drive this one |
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Term
| Mobile Phone Producer Porter's Five Forces |
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Definition
Suppliers-M
Substitutes-L
Rivalry-H
Buyer Power-H
New Entrants?-I'm not sure |
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Term
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Definition
| Motivated by personally identifying with organizations values vision and mission-willingly |
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Term
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Definition
| Principle of action and interaction requiring necessary skills and resources |
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Term
| Establish strategic objective through values, vision, and mission |
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Definition
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Term
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Definition
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Term
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Definition
| shared purpose that serves all stakeholders |
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Term
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Definition
| Willingness of employees and stakeholders to continue to do business |
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Definition
| Willingness and ability to do what is expected |
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Term
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Definition
-What are you passionate about
-What you can be best in the world in
-What drives your economic engine |
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Term
| 3 Points from Jobs Speech |
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Definition
1.Connecting Dots-Trust in yourself
2. Love and Loss-Life will hit, don't give up
3. Death-Live your own life time is limtied. |
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Term
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Definition
1. Message is abstract, complex, or difficult to understand
2. Your key message is visual in nature
3. It is essential that your audience retain your message
4. There is controversy or chance it will be misinterpretted
5. More than 2 or 3 key points
6. Want to add emphasis to a point
7. Presentation includes words or language unfamiliar to audience
8. Presentation is a how-to session involving several steps
9. It includes numbers |
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