Shared Flashcard Set

Details

1- MGT 499 || Chapter One Lecture
1- MGT 499 || Chapter One Lecture
9
Business
Undergraduate 4
01/15/2019

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Cards

Term
What is a strategy?
Definition
Firm's theory to generate a sustainable competitive advantage.
Term
What is what a company does better than rivals that leads to making greater profits than rivals?
Definition
Competitive advantage
Term
What is the basic equation for profit?
Definition
Revenues - Costs
Term
What do you do to Revenue to increase profit?
Definition
Increase it
Term
What do you do to Costs to increase profit?
Definition
Decrease it
Term
Why is making greater profits NOT enough for maximizing the value of shareholders?
Definition
You need to find how to balance short-term and long-term investments.

Ultimately we want to create a sustainable competitive advantage.
Term
What are the principal drivers of shareholder value?
Definition
Profitability + Profit Growth
Term
Who are Stakeholders?
Definition
Those with an interest or concern in a company.
Term
Who are Shareholders?
Definition
Stockholders who own shares of the company.
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