Term
| __________ is achieved when a firm successfully formulates and implements a value-creating strategy |
|
Definition
| strategic competitiveness |
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|
Term
| a ________ is an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage |
|
Definition
|
|
Term
| a firm has a ___________ when it implements a strategy competitors are unable to duplicate or find too costly to try to imitate |
|
Definition
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|
Term
| _______________ are returns in excess of what an investor expects to earn from other investments without a similar amount of risk |
|
Definition
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|
Term
| ______ is an investor's uncertainty about the economic gains or losses that will result from a particular investment |
|
Definition
|
|
Term
| the most successful companies learn how to effectively manage ___ |
|
Definition
|
|
Term
| returns are measured in terms of _____________, such as "return on assets"..."return on equity"...and "return on sales" |
|
Definition
|
|
Term
| in smaller, new venture firms, returns are sometimes measured in terms of: |
|
Definition
| amount and speed of growth |
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|
Term
| firms without a competitive advantage or that are not competing in an attractive industry earn ____________ |
|
Definition
|
|
Term
| __________ are returns equal to those an investor expects to earn from other investments with a similar amount of risk |
|
Definition
|
|
Term
| The ____________ is the full set of commitments, decisions, and actions required for a firm to achieve strategic competitiveness and earn above-average returns |
|
Definition
| strategic management process |
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|
Term
| a ___________ is one in which goods, services, people, skills, and ideas move freely across geographic borders |
|
Definition
|
|
Term
| ___________ is a term often used to capture the realities of the competitive landscape |
|
Definition
|
|
Term
| hypercompetition results from the : |
|
Definition
| from the dynamics of strategic maneuvering among global and innovative combatants |
|
|
Term
| what are the two primary drivers of hypercompetitive environments |
|
Definition
the emergence of a global economy and technology
(specifically rapid technological change) |
|
|
Term
| what is a global economy? |
|
Definition
| one in which goods, services, people, skills, and ideas move freely across geographic borders |
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|
Term
| ___________ is the increasing economic interdependence amount countries and their organizations as reflected in the flow of goods/services, financial capital, and knowledge across country borders |
|
Definition
|
|
Term
|
Definition
| the increase in economic interdependence among countries and their organizations as reflected in the flow of goods/services, financial capital, and knowledge across country borders |
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|
Term
| ____________ is a term used to describe how rapidly and consistently new, information-intensive technologies replace older ones |
|
Definition
|
|
Term
| what is perpetual innovation? |
|
Definition
| a term used to describe how rapidly and consistently new, information-intensive technologies replace older ones |
|
|
Term
| technology related trends and conditions can be placed into these three categories: |
|
Definition
1. technology diffusion and disruptive technologies
2. the information age
3. increasing knowledge intensity |
|
|
Term
| ___________ is the speed at which new technologies become available and are used |
|
Definition
| the rate of technology diffusion |
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|
Term
| __________ are technologies that destroy the value of an existing technology and create new markets |
|
Definition
|
|
Term
| these types of products are thought by some to represent radical or breakthrough innovations |
|
Definition
|
|
Term
| both the pace of change in information technology and its diffusion will continue to: |
|
Definition
|
|
Term
| the internet is another technological innovation contributing to _________ |
|
Definition
|
|
Term
| knowledge is gained through: |
|
Definition
| experience, observation, and inference |
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|
Term
| knowledge is a(n) ____________ |
|
Definition
|
|
Term
| __________ is a set of capabilities used to respond to various demands and opportunities existing in a dynamic and uncertain competitive environment |
|
Definition
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|
Term
| to be strategically flexible on a CONTINUING basis, a firm must develop the capacity to_________ |
|
Definition
|
|
Term
| the industrial organization (I/O) model of above average returns explains: |
|
Definition
| the external environment's dominant influence on a firm's strategic actions |
|
|
Term
| from the 1960's through the 1980's, the ___________ was thought to be the primary determinant of strategies that firms selected to be successful |
|
Definition
|
|
Term
grounded in economics, the I/O model has four underlying assumptions:
(number 1) |
|
Definition
| 1. the external environment is assumed to impose pressures and constraints that determine the strategies that would result in above-average returns |
|
|
Term
grounded in economics, the I/O model has four underlying assumptions:
(number 2) |
|
Definition
| 2. most firms competing within an industry or within a segment of that industry are assumed to control similar strategically relevant resources and to pursue similar strategies in light of those resources |
|
|
Term
grounded in economics, the I/O model has four underlying assumptions:
(number 3) |
|
Definition
| 3. resources used to implement strategies are assumed to be highly mobile across firms, so any resource differences that might develop between firms will be short-lived |
|
|
Term
grounded in economics, the I/O model has four underlying assumptions:
(number 4) |
|
Definition
| 4. organization 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
| the I/O model challenges firms to find: |
|
Definition
| the most attractive industry in which to compete |
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|
Term
| the five forces model of competition is an analytical tool used to: |
|
Definition
| help firms find the industry that is most attractive to them |
|
|
Term
| the five forces model suggests that an industry's profitability is a function of interactions among: |
|
Definition
1. suppliers
2. buyers
3. competitive rivalry among firms currently in the industry
4. product substitutes
5. potential entrants to the industry |
|
|
Term
| firms use the five-forces model to identify: |
|
Definition
| the attractiveness of an industry |
|
|
Term
| The I/O model suggests that above-average returns are earned when: |
|
Definition
| when firms are able to effectively study the external environment as the foundation for identifying an attractive industry and implementing the appropriate strategy |
|
|
Term
| ___________ are inputs into a firm's production process, such as capital equipment, the skills of individual employees, patents, finances, and talented managers |
|
Definition
|
|
Term
| the resource-based model assumes each organization is a : |
|
Definition
| collection of unique resources and capabilities |
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|
Term
| the ___________ of it's resources and capabilities is the basis of a firm's strategy and its ability to earn above average returns |
|
Definition
|
|
Term
| in general, a firm's resources are classified into how many categories? |
|
Definition
three:
1. physical
2. human
3. organizational capital |
|
|
Term
| in general, a firm's resources are classified into these three categories: |
|
Definition
1. physical
2. human
3. organizational capital |
|
|
Term
| resources have a greater likelihood a being a source of competitive advantage when they are formed into a _________ |
|
Definition
|
|
Term
| A __________ is the capacity for a set of resources to perform a task or an activity in an integrative manner |
|
Definition
|
|
Term
| capabilities _________ over time |
|
Definition
|
|
Term
| capabilities evolve over time and must be managed dynamically in pursuit of _____________ |
|
Definition
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|
Term
| _____________ are capabilities that serve as a source of competitive advantage for a firm over its rivals |
|
Definition
|
|
Term
| according to the resource-based model, differences in firms' performances across time are due primarily to: |
|
Definition
their unique resources and capabilities
(rather than the industry's structural characteristics) |
|
|
Term
| resources are ________ when they allow a firm to take advantage of opportunities or neutralize threats in its external environment |
|
Definition
|
|
Term
| resources are _________ when they are possessed by few, if any, current and potential competitors |
|
Definition
|
|
Term
| resources are _____________ when other firms either cannot obtain them or are at a cost disadvantage in obtaining them compared to the firm that already possesses them |
|
Definition
|
|
Term
| resources are ____________ when they have no structural equivalents |
|
Definition
|
|
Term
| many resources can be either ___________ or _________ over time |
|
Definition
|
|
Term
| it is difficult to achieve and sustain a competitive advantage based on ___________ alone |
|
Definition
|
|
Term
| it is ___________ to achieve and sustain a competitive advantage base on resources alone |
|
Definition
|
|
Term
| _____________ are capabilities that serve as a source of competitive advantage for a firm over its rivals |
|
Definition
|
|
Term
| what is the key purpose of a vision/mission statement |
|
Definition
| to inform stakeholders of what the firm is, what it seeks to accomplish, and who it seeks to serve |
|
|
Term
| ___________ is a picture of what the firm wants to be and, in broad terms, what it wants to ultimately achieve |
|
Definition
|
|
Term
| a __________ points the firm in the direction of where it would eventually like to be in the years to come |
|
Definition
|
|
Term
| vision is "big picture" thinking with passion that helps people ________ |
|
Definition
| FEEL what they are supposed to be doing in an organzation |
|
|
Term
| people feel what they are to do when their firm's vision is ________ |
|
Definition
| simple, positive, and emotional |
|
|
Term
| an effective vision _______ and ___________ people |
|
Definition
| stretches and challenges people |
|
|
Term
| vision statements reflect a firm's ________________ |
|
Definition
|
|
Term
| vision statements reflect a firm's values and aspirations, and are intended to: |
|
Definition
| capture the heart and mind of each employee (and hopefully many of its stakeholders) |
|
|
Term
| a firm's vision tends to be _______ |
|
Definition
|
|
Term
| a firm's vision tends to be enduring, while its mission can: |
|
Definition
| change in light of changing environmental conditions |
|
|
Term
| a vision statement tends to be how long? |
|
Definition
relatively short and concise
(so it is easily remembered) |
|
|
Term
| "To make the automobile accessible to every American" is an example of a ___________ |
|
Definition
|
|
Term
| the ________ is responsible for working with others to form the firm's vision |
|
Definition
|
|
Term
| a vision statement should be clearly tied to: |
|
Definition
| the conditions of the firm's external environment and internal organization |
|
|
Term
| the vision is the foundation for the firm's __________ |
|
Definition
|
|
Term
| A _________ specifies the business or businesses in which the firm intends to compete and the customers it intends to serve |
|
Definition
|
|
Term
| a mission specifies the _________ and ______ |
|
Definition
business or businesses in which the firm intends to compete
AND
the customers it intends to serve |
|
|
Term
| the firm's mission is more _______ than its vision |
|
Definition
|
|
Term
| the probability of forming an effective mission increases when: |
|
Definition
| when employees have a strong sense of ethical standards that will guide their behaviors as they work to help the firm reach its vision |
|
|
Term
| the final responsibility for firming the firm's mission rests with : |
|
Definition
|
|
Term
| ____________ are the individuals and groups who can affect the firm's vision and mission, are affected by the strategic outcomes achieved, and have enforceable claims on the firm's performance |
|
Definition
|
|
Term
| the parties involved with a firm's operations can be separated into these groups: |
|
Definition
1. capital market stakeholders
2. product market stakeholders
3. organizational stakeholders |
|
|
Term
| ____________ are shareholders and the major suppliers of a firm's capital |
|
Definition
| capital market stakeholders |
|
|
Term
| ___________ are the firm's primary customers, suppliers, host communities, and unions representing the workforce |
|
Definition
| product market stakeholders |
|
|
Term
| _____________ are all of the firm's employees, including both non-managerial and managerial personell |
|
Definition
| organization stakeholders |
|
|
Term
| who are CAPITAL MARKET stakeholders? |
|
Definition
- shareholders
- major suppliers of capital (e.g., banks) |
|
|
Term
| who are PRODUCT MARKET stakeholders? |
|
Definition
- primary customers
- suppliers
- host communities
- Unions |
|
|
Term
| who are ORGANIZATIONAL stakeholders? |
|
Definition
- employees
- managers
- nonmanagers |
|
|
Term
| when a firm earns above-average returns, the challenge of effectively managing stakeholder relationships is _________ |
|
Definition
|
|
Term
| __________ are people located in different parts of he firm using strategic management process to help the firm reach its vision and mission statement |
|
Definition
|
|
Term
| ___________ refers to the complex set of ideologies, symbols, and core values that are shared throughout the firm and that influence how the firm conducts business |
|
Definition
|
|
Term
| ___________ is the social energy that drives - or fails to drive - the organization |
|
Definition
|
|
Term
| A ________ entails the total profits earned in an industry at all points along the value chain |
|
Definition
|
|
Term
| name the steps to identifying a profit pool |
|
Definition
1. define the pool's boundaries
2. estimate the pool's overall size
3. estimate the size of the value-chain
4. reconcile the calculations |
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