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Details Title: Strategic Mgt. Description: Test 1 Chapter 1 Total Flash Cards: 14 Created: 02/18/2007 21:43:11	To study from this set of flash cards, or to create your own your own study flash cards, register HERE. If you are already a registered user, CLICK HERE.
Cards Term Strategic Management: Definition The ability to gain a competitive advantage and above average returns. Term Hyper Competition: Definition When competition rapidly escalates based on price quality positioning, competition to create new know how and establish first mover advantage, competition to protect or invade established product or geographic markets. Term The driver of hyper competition is technological change Definition (the rate of change of technology and speed at which new technologies become available is increasing) Term Two approaches to strategic management: Definition I/O Model of Above Average Returns Resource Based Model of Avove AVerage Returns Term I/O Model Definition Michael Porter...Harvard Above Average Returns are determined by characteristics of the external environment. Firms need to do business in attractive industries Term Four assumptions of the I/O Model Definition External Environment Imposes pressures and constraints that determine strategies that affect above average returns Most firms puruse simliar strategies and resources resources used to implement strategies are highly mobile across firms. Decision makers are assumed to be rational and committed to actin in the firms best interests Term Resource Based Model Definition Texas A&M. Above Average returns are largely determined by characteristics of resources within the firm. To achive above average returns, firms should develop and obtain valuable resources that are difficult for rivals to imitate Term Three assumptions of the Resource Based Model Definition Each firm is a collection of unique resources that are the source of firm returns Over time firms acquire different resources and develop unique capabilities Resources may not be highly mobile across firms within an industry. Term Three Stake Holder Groups Definition Captial Market Product Market Organizational Market Term Capital Market Stakeholder Definition shareholders/major suppliers of capital(banks) Term Product Market Stake Holders Definition Primary customers/Suppliers/Host communities/ Unions Term Organizational Stake Holders Definition Employees/Managers/Nonmanagers Term Two Issues affecting stakeholder involvement Definition How to divide returns to keep stakeholders involved How to increase returns so everyone has more to share. Term What do Strategic Leaders Do? Definition Study internal(resource model) and external(I/O model) SWOT determine how to best use resources integrate strategic strategies seek feedback from stakeholders use strategic intent to leverage resources and win competitive battles