Term
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Definition
| The ability to gain a competitive advantage and above average returns. |
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Term
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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. |
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| The driver of hyper competition is technological change |
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Definition
| (the rate of change of technology and speed at which new technologies become available is increasing) |
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Term
| Two approaches to strategic management: |
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Definition
I/O Model of Above Average Returns
Resource Based Model of Avove AVerage Returns |
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Term
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Definition
Michael Porter...Harvard
Above Average Returns are determined by characteristics of the external environment.
Firms need to do business in attractive industries |
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Term
| Four assumptions of the I/O Model |
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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 |
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Term
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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 |
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Term
| Three assumptions of the Resource Based Model |
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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. |
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Term
| Three Stake Holder Groups |
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Definition
Captial Market
Product Market
Organizational Market |
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Term
| Capital Market Stakeholder |
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Definition
| shareholders/major suppliers of capital(banks) |
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| Product Market Stake Holders |
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Definition
| Primary customers/Suppliers/Host communities/ Unions |
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| Organizational Stake Holders |
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Definition
| Employees/Managers/Nonmanagers |
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Term
| Two Issues affecting stakeholder involvement |
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Definition
How to divide returns to keep stakeholders involved
How to increase returns so everyone has more to share. |
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Term
| What do Strategic Leaders Do? |
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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 |
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