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29 Cards in this Set
- Front
- Back
Factors inpacting competitive environment
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Increase in globalization-peace between world powers, westernization of world, ease of flow of ideas, people, goods, and services
Increase in technological advances- increase in technological change, change in information and communication devices, and increase in importance of ideas |
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5 tasks of strategic management
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1. Develop strategic mission and vision
2. Set objectives 3. Develop strategy to meet objectives (business model) 4. Implement and execute strategy 5. monitor, evaluate, and make changes to model. |
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Difference between a vision and a mission
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Mission focuses on current business activities (what we are doing now)
Vision focuses on future business paths (where we are going) |
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purpose of objectives`
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convert vision into action, prevent coasting by setting concrete benchmarks and performance targets.
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2 kinds of objectives
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Strategic- focuses on gaining long term competitive advantage in industry
FInancial- focuses on long term fnancial success Unless in financial trouble or facing great risk, strategic usually stressed more to maintain momentum. |
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I/O Model of business
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Industrial Organization model- focuses on the extrenal envirionments of a business in the hopes of finding an attractive environment in which a strategy can be developed and implemented using a firms assets and skills in order to acheive superior returns
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Resource-based model
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Focuses on unique resources or capabilities of a company in order to find an attractive market to achieve superior returns.
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Levels of strategy-making-diverse company
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Corporate
Business Functional Operational |
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Levels of strategy making-single-company business
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COrporate/Business
Functional Operating |
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corporate strategy should/involves
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should- seek diversification, boost performace, find strategic fits, and develop investment priorities.
involves- repsonding to industrial changes, crafting competitive strategies, and building competencies and capabilities. |
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Porters 5 factors
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Power of suppliers
Power of buyers Threat of new entrants Strength of Rivalry Product substitutes |
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factors which decrease threat of new entrants
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High barrier of entry due to economies of scale, high capital requirements, product differentiation
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factors increasing power of buyers
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Many firms in market, little differentiation, makeup large portion of sales and revenue.
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factors increasing suppliers power
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controlled by a small number of suppliers, limited resources available, supply crucial to process
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factors increasing threat of substitutes
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Lower cost/higher quality option exsists, little switching cost neccesary
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factors increasing intensity of rivalry
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zero sum game industry, many competitors exist, high exit costs
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environmental segments
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globalization
economics politics/law sociocultural demographics technology |
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Driving forces
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Those forces that will have a true impact on a market over next 1-3 years
Impact should be analyzed |
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How should a firm deal with Porter's five forces?
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Firms should creat a strategy which insulates the 5 forces and creates a sustainable competitive advantage
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FIve Key Success Factors (KSF's)
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1. Specific Strategic Elements
2. Product attributes 3. resources 4. Core Competencies 5. Competitive Capabilities |
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COmpetitive Advantage Triangle
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Comeptitive Advantage
Strategic assets and market achievements Core Competencies COmpetitive Capabilities COmapny Resources |
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Resources (def and two types)
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What a company has
Intangible-human, reputation, innovation Tangible- Technology, Financial, Organizational, Physical |
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Capabilities
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What a company does
-consists of a company's ability to send resources to accomplish as pecific function and of employees abilities and knowledge |
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core competencies
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what a company does that seperates it from other companys. This adds value and creates a competitive advantage.
Resources and capabilities. |
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4 criteria for a sustainable comeptitive advantage
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1. Rare
2. Valuable 3. Costly to imitate- due to history, ambiguous, or complex societal reasons. 4. Nonsubsitutable |
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Value Chain
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The process that takes a product from raw material to final customer
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Primary Activities
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1. Inbound Logistics- activities surrounding the reception, storing, and dissemination of imputs to a product
2. Operations- activites surrounding the conversion of imputs into the final product 3. Outbound logistics- activities surrounding the collection, storage, and distribution of a product 4. Marketing/sales-activities enabling/inducing a consumer to buy a product 5. Service-activities that sustain or enhance a products value |
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Support activities in a value chain
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1. Firm Infrastructure- activities relating to the entire value chain
2. human relation management- activities relating to company employees 3. technological development- activities which add value to a company's product or processes. 4. Procurement- the activities involved with obtaining a product's imputs. |
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Outsourcing-definition and three reasons for.
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Purchasing some value creating activity from an outside supplier
1. Keeps a firm focused on other, more important areas. 2. Allows access to world class capabilities 3. Frees up needed capital. |