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| Strategic Competitiveness |
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Definition
| Achieved when a firm successfully formulates and implements a value creating strategy. |
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| An integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage. |
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| When it implements a strategy competitors are unable to duplicate or find it too costly to try to initiate. |
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| Are returns in excess of what an investor expects to earn from other investments with a similar amount of risk. |
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| An investor's uncertainty about the economic gains or losses that will result from a particular investment. |
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| Returns equal to those an investor expects to earn from other investments with a similar amount of risk. |
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| Strategic Management Process |
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| The full set of commitments, decisions, and actions required for a firm to achieve strategic competitiveness and earn above-average returns. |
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| One in which goods, services, people, skills, and ideas move freely across geographical borders. |
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| A set of capabilities used to respond to various demands and opportunities existing in a dynamic and uncertain competitive environment. |
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| Inputs into a firm's production process, such as capital equipment, the skills of individual employees, patents, finances, and talented managers. |
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| The capacity for a set of resources to perform a task or an activity in an integrative matter. |
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| Used to describe how rapidly and consistently new information intensive technologies replace older ones. |
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| The I/O Model of Above- Average Returns |
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Definition
1. The External Environment
2. An Attractive Industry
3. Strategy Formulation
4. Assets and Skills
5. Strategy Implementation
6. Superior Returns |
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| Capabilities that serve as a source of competitive advantage for a firm for a firm over its rivals. |
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| A picture of what the firm wants to be and, in broad terms, what it wants to ultimately achieve. |
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| Specifies the business or businesses in which the firm intends to compete and the customers it intends to serve. |
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| Individuals and groups who can affect, and are affected by, the strategic outcomes achieved and who have enforceable claims on a firm's performance. |
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| People located in different parts of the firm using the strategic management process to help the firm reach its vision and mission. |
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| Refers to the complex, set ideologies, symbols, and core values that are shared throughout the firm and that influence how the firm conducts business. |
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| Entails the total profits earned in an industry at all points along the value chain. |
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| Composed of dimensions in the broader society that influences an industry and the firms within it. |
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| Set of factors that directly influences a firm and its competitive actions and competitive responses: the threat of product substitutes, and the intensity of rivalry among competitors. |
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| A condition in the general environment that, if exploited, helps a company achieve strategic competitiveness. |
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| Condition in the general environment that may hinder a company's efforts to achieve strategic competitiveness. |
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| Components of the External Environmental Analysis |
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Definition
-Scanning for early signals of potential changes and trends in the general environment
-Monitoring changes to see if a trend emerges from among those spotted by scanning
-Forecasting projections of outcomes based on monitored changes and trends
-Assessing the timing and significance of changes and trends on the strategic management of the firm |
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| Concerned with a population's size, age, structure, geographic distribution, ethnic mix, and income distribution. |
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| Refers to the nature and direction of the economy in which a firm competes or may compete. |
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| The arena in which organizations and interest groups compete for attention, resources, and a voice in overseeing the body of laws and regulations guiding the interactions among nations. |
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| Concerned with a society's attitudes and cultural values. |
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| Includes the institutions and activities involved with creating new knowledge and translating that knowledge into new outputs, products, processes, and materials. |
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| Includes relevant new global markets, existing markets that are changing important international political events, and critical cultural and institutional characteristics of global markets. |
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| Group of firms producing products that are close substitutes. |
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| A set of firms emphasizing similar strategic dimensions to use a similar strategy. |
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| The set of data and information the firm gathers to better understand and better anticipate competitors' objectives, strategies, assumptions, and capabilities. |
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| The network of companies that sell complementary goods or services or are compatible with the focal firm's own product or service. |
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| The ability to study an internal organization in ways that are not dependent on the assumptions of a single country, culture, or context. |
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| Measured by a product's performance characteristics and by its attributes for which customers are willing to pay. |
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| Assets that can be seen and quantified. |
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| Include assets that are rooted deeply in the firm's history and have accumulated over time. |
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| Allow the firm to exploit opportunities or neutralize threats in its external environment. |
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| Capabilities that few, if any, competitors possess. |
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| Costly-to-imitate Capabilities |
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| Capabilities that other firms cannot easily develop |
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| Nonsubstitutable Capabilities |
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| Capabilities that do not have strategic equivalents. |
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| Involved with a product's physical creation, its sale and distribution to buyers, and its service after the sale |
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| Provide the assistance necessary for the primary activities to take place. |
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| The purchase of a value-creating activity from an external supplier. |
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| An integrated and coordinated set of commitments and actions the firm uses to gain a competitive advantage by exploiting core competencies in specific product markets. |
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| A process used to cluster people with similar needs into individual and identifiable groups |
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| 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. |
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| 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. |
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| An integrated set of actions taken to produce goods or services that serve the needs of a particular segment. |
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| Integrated Cost Leadership/Differentiation Strategy |
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| Involves engaging in primary and support activities that allow a firm to simultaneously pursue low cost and differentiation. |
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| Total Quality Management (TQM) |
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Definition
| A 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, problem solving approaches based on empowerment of employee groups and teams. |
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