StrategicManagementandStrategicCompetitiveness

Definitions
Strategiccompetitiveness Strategy
Whenafirmsuccessfullyformulatesandimplementsavalue creatingstrategy. Anintegratedandcoordinatedsetofcommitmentsandactions designedtoexploitcorecompetenciesandgainacompetitive advantage. Avaluecreatingstrategythatcompetitorsareunableto duplicateorfindtoocostlytotrytoimitate. Returnsinexcessofwhataninvestorexpectstoearnfromother investmentswithasimilaramountofrisk. Aninvestorsuncertaintyabouttheeconomicgainsorlosses thatwillresultfromaparticularinvestment. Returnsequaltothoseaninvestorexpectstoearnfromother investmentswithasimilaramountofrisk. Thefullsetofcommitments,decisions,andactionsrequiredfor afirmtoachievestrategiccompetitivenessandearnabove averagereturns.

Competitiveadvantage Aboveaveragereturns Risk Averagereturns Strategicmanagement process

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Figure1.2 Intended,Emergent,andRealizedStrategies

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The21stCenturyCompetitiveLandscape
Interactivecomputernetworks&telecommunications Partnershipsamongfirmsindifferentsegments Managementnewmindset Hypercompetition

globaleconomy technology

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Figure1.3TheI/OandResourceBasedModels

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Vision Mission

apictureofwhatthefirmwantsto beand,inbroadterms,whatit wantstoultimatelyachieve. firmsvaluesandaspirations

specifiesthebusinessorbusinesses inwhichthefirmintendsto competeandthecustomersit intendstoserve.

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Ourvision istobethequalityleaderin everythingwedo.

Ourguidingmission istodeliver superiorqualityproductsandservices forourcustomersandcommunities throughleadership,innovationand partnerships.

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Figure1.4TheThreeStakeholder Groups

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Strategicleadersare:
Ultimatelyresponsibleforservingtheneedsof

organizationalstakeholdersonadaytodaybasis.
strategicmanagementprocesstohelpthefirmreachits visionandmission.

Peoplelocatedindifferentpartsofthefirmusingthe

Mustunderstandhowtodelegatestrategicresponsibilities

topeoplethroughoutthefirmwhoinfluencetheuseof organizationalresources. principlesthatincludeethicsandintegrity.

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Commonlyhaveastrongsetofcorevaluesorguiding

Figure1.1 TheStrategicManagementProcess

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