Term
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Definition
| integrated and coordinated set of commitments and actions designed to exploit core competencies and gain competitive advantage |
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Term
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| choice, priorities, commitments, sustainability, fit, and learning |
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Definition
rapid changes in industry boundaries and markets global economy rapid technological change severe consequences for failure |
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| a picture of what a firm wants to be |
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| the business in which the firm wants to compete |
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Term
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| individuals and group shwo can affect, and are affected by the strategic outcomes achieved and who have enforceable claim son a firm's performance |
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Term
| strategic management process |
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Definition
external an dinternal environments opportunities and threats core competencies strategic intent implementation of strategies feedback |
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| Industrial Organization of Above Average Returns |
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Definition
| earn returns by not being stuck in the middle |
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Term
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Definition
| suppliers, buyers, rivalry, substitutes, entrants |
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Term
| resource based model of above-average returns |
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Definition
| based on core competencies which need ot be valuable, rare, costly to imitate, and non substitutable |
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Definition
| demographic, economic, political, sociocultural, technological, global |
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| scanning, monitoring, forecasting, and assessing |
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| companies that use the same strategy |
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| resources (assets/inputs) |
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Definition
| financial, organizational, physical, technological, human, innovation, reputational |
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Term
| value chain support activities |
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Definition
| infrastructure, human resources, technology, procurement |
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Term
| value chain primary activities |
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Definition
| in and out logistics, operations, marekting and sales, service |
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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 advantage by exploiting core competencies in specific product markets. - to position itself differently from the competition |
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Term
| sources of competitive advantage |
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Definition
| cost advantage and differentation |
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Term
| relationships with customers |
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Definition
reach - access and connection to customers richness - depth and detail of the flow of information affiliation - interactions with customers |
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| consumer market segmentation |
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Definition
| demographic, socieoeconomic, geographic, physchological, consumption patterns, perceptual |
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Term
| industrial market segmentation |
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Definition
| end user segments (sic codes), product segments, geographic segments, common buying factor, customer size segments |
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Term
| value creating activities associated with cost leadership strategy |
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Definition
simplified, cost effective infrastructure effective training and consistent policies in human resource management easy to use and investment in technology procedures and evaluations for procurement efficient inbound logisitcs efficient and economy of scale operations low-cost carriers and schedule for outbound logistics small sales force, high valume products efficient and proper service to reduce recalls |
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| risks of cost leadership strategy |
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Definition
imitation change in technology |
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Term
| value creating activities associated with value-creating strategy |
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Definition
high quality, high information infrastructure creativity rewards, personal training strong tech research procedures for high quality procurement minimize damange of inbound logistics rapid customer response in operations rapid delivery for outbound logistics extensive credit and personal relationships buyer training |
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| risks of value-creating strategy |
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Definition
| imitation, differentiation becomes less important |
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| risks of a focused strategy |
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Definition
| structure erodes, demand disappears, broad comeptitors emerge |
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Term
| integrated strategy and risks |
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Definition
adapts and learns quickly leverages core competencies involves compromises could become stuck in the middle |
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Term
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Definition
ongoing actions and responses: strategic - significant commitments tactical - fine tuning & quick |
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| drivers of competitive rivalry |
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Definition
awareness motivation ability - flexibility of resources market commonality resource dissimilarity - creates delay |
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Definition
first movers - innovative, aggressive advertising, R&D second movers - study reactions, avoids mistakes late movers - only average returns |
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Term
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Definition
| performances, features, flexibility, durability, conformance, serviceability, aesthetics, perceived quality |
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Term
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Definition
| timeliness, courtesy, consistency, convenience, completness, accuracy |
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Definition
cost of imitation, sustainability fast cycle: computers slow cycle: disney copywrites |
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| value of corporate level strategy |
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Definition
| if the business is worth more under the company management vs being a separate company |
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Term
| levels of diversification |
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Definition
related constrained share product, tech, and distribution related linked only have limited links between businesses |
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Term
| types of corporate level strategy |
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Definition
value creating - economies of scope, market power, financial economics value-neutral - incentives, resources value-reducing - managerial motives |
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| reasons for acquisitions and restructuring |
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Definition
increased market power overcoming entry barriers cost of new product development increase speed to market lower risk than developing new products increased diversification reshaping firm's competitive scope learning and developin new capabilities |
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| problems with acquisitions and restructuring strategies |
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Definition
| integration difficulties, inadequate evaluation of target, large or extraordinary debt, inability ot achieve synergy, too much diversification, managers overly focused on acquisitions, too large |
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Definition
| raw materials, transportation, lower costs for labor, key customers, energy, learning |
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Definition
| decentralized strategic and operating decision |
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Definition
| standardized products across countries |
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| both global efficiency and local responsiveness |
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| porter's national diamond framework |
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Definition
factor conditions relating and supportind industries demand conditions strategy, structure, and rivalry |
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Term
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Definition
| any cooperative effort between two or more independent organizations to develop, manufacture, or sell products or services |
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Term
| how to create value with strategic alliances |
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Definition
improve operations shape competitive environment facilitate entry and exit |
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Term
| risks of strategic alliances |
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Definition
allocating value is difficult to monitor, adverse selection - misrepresentation moral hazard - not living up to promises holdup |
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Term
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Definition
licensing, supply/distributiona agreements protect with explicit contracts and legal sanctions |
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Definition
cross equity holdings protected because it aligns interest of partners through ownership in each other |
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Term
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Definition
an independent firm is created protected because it aligns the interests through ownership of the independent firm |
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| substitutes for strategic alliances |
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Definition
internal development mergers and acquisitions |
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