1.

Achieved when a firm successfully formulates and implements a value-creating strategy- Strategy
competitiveness
2. Occurs when a firm develops a strategy that competitors are not simultaneously implementing-
Competitive advantages
Provides benefits which current and potential competitors are unable to duplicate
3.Returns in excess of what an investor expects to earn from other investments with similar risk- Above
Average Return
4. Strat mgnt process - 3 - Decision, Commitment, Action
5. challenge of strategic management (goal of achieving strategic competitiveness and above average)
6. Fundamental nature of competition is changing
7. new key to success (fisi) - flexibility, innovation, speed, integration
8. alternative model of superior return - industrial organization , resource based model
9. I/O (eassas)-external env,attractive industry, strategy formulation, strategy implementation, assets and
skills. Superior returns
RBM (rccass) - resources , capabilities , competitive advantage , attractive industry, strategy
implementation, superior returns
10. >model suggests that above-average returns for any firm are largely determined by characteristics
outside the firm.- industrial organization
> 3 extrernal -general , competitive, industrial
>An industry whose structural characteristics suggest above-average returns are possible - external env
>Selection of a strategy linked with above-average returns in a particular industry - strategy formulation
>required to implement chosen strategies - assets and skills
>Selection of strategic actions linked with effective implementation of the chosen strategy - strategy
implementation
>Earning of above-average returns - superior return
>model suggests that above-average returns for any firm are largely determined by characteristics inside
the firm. - resource based model
>Inputs to a firms production process. - resource
>capacity for an integrated set of resources to perform taskor activities - capabilities
>Ability of a firm to outperform its rivals - competitive advantage
>Location of an industry with opportunities that can be exploited by the firms resources - attractive
industry
>Strategic actions to earn above average strategy implementation
>resources and capabilities lead to competitive advantage (4) - valuable, rare, costly to imitate ,
nonsubstitutable
>allow the firm to exploit opportunities or neutralize threats in its external environment - valuable
>possessed by few, if any, current and potential competitors - rare
>when other firms either cannot obtain them or must obtain them at a much higher cost - costly to imitate
>the firm must be organized appropriately to obtain the full benefits of the resources in order to realize a
competitive advantage - nonsubstitutable
>are resources and capabilities that can serve as a source of Competitive Advantage core competency
>Winning competitive battles through deciding
how to leverage internal resources, capabilities,
and core competencies. - strategic intent
>An application of strategic intent in terms of
products to be offered and markets to be served. - strategic mission
>The most effective strategists - strategic intent
>Groups who are affected by a firms
performance and who have claims on its
Wealth - stakeholders
>firm (3) -
>components of general environment -
>4 activities in external environment analysis (smfa) - scanning, monitoring, forecasting, assessing
>Identifying early signals of environmental changes and trends - scanning
>Detecting meaning through ongoing observations of environmental changes and trends- monitoring
>Developing projections of anticipated outcomes based on monitored changes and trends - forecastinf
>Determining the timing and importance of environmental changes and trends for firms' strategies and
their management - assessing
>Porters Five Forces Model of Competition - treath of new entrants, bargaining power of suppliers /
buyers, threat of new substitute
>Suppliers exert power in the industry by:threatening
>Buyers compete with the supplying industry by: bargaining down price
>Products with similar function limit the prices firms can charge - new subs
>intense rivalry, pressured or sees opportunity, cutthroat competition - rivalry among competitors
>are economic, strategic and
emotional factors which cause companies to remain
in an industry even when future profitability is
Questionable.- high exit barriers
>low, low ; low high; high high ; high low - low stable return. High stable return , high risk return, low
risk return
>competitor analysis (fcac) - future objective ,current strategy, assumpttion, capabilities
>Gained through Core Competencies - competitive advantage
>Above-Average Returns - strategy competitiveness
>source of competitive advantage - core competency
>teams of resources - capabilities
>tangible/intangible - resources
>regarding characteristics of the general and the
industry environments, competitors actions, and
customers preferences.- uncertatinty
>regarding the interrelated causes shaping a firms
environments and perceptions of the environments - complexity
>among people making managerial decisions and
those affected by them - intraorg conflict
>Tangible resources (fpho) - financial, physical, human resource manage, org
>Intangible resources (tir) - technology , innovation, reputation
>firm has to work with: its assets, including its people
and the value of its brand name - resource
>the firms capacity or ability to integrate
individual firm resources to achieve a desired
Objective. - capability
>are the essence of what makes an organization
unique in its ability to provide value to
Customers. - core competency
>What Criteria Make Core Competencies Costly to Imitate? (ucs) - unique historical condition, casual
ambiguity, social complecxity
>An unusual evolutionary pattern of growth may contribute to the
development of competencies in a manner that is unique to those
particular circumstances - unique historical condition,
>This occurs when competitors are unable to detect how a firm uses
its competencies as a foundation for competitive advantage - casual ambiguity,
>Occurs when the firms capabilities are the result of complex social
phenomena, such as interpersonal relationships, trust and friendships
among managers or a firms reputation with suppliers and customers - social complecxity
>value chain analysis support activities (fhtp) - firm infrastructure , human resource mgnt, technoligal
dev, procurement
>primary activities(iooms) - inbound logistic, operation, outbound logistic, marketing and sales, services
>Strategic Rationales for Outsourcing (ipasf) - improve bus focus, provide world class capabilities,
acceleerate bus. Reengineering, share risks, free resource
>Lets company focus on broader business issues by having outside
experts handle various operational details- - improve bus focus
>The specialized resources of outsourcing providers makes
world-class capabilities available to firms in a wide range of
Applications - provide world class capabilities
>Reduces investment requirements and makes firm more flexible,
dynamic and better able to adapt to changing opportunities -share risks
>total value system (sfcb) - supply value chain, firm vc, channel vc, buyer vc
>Perform valuable activities that
complement the firms activitiess -supply value chain
>Each firm must eventually find a way to
become a part of some buyers value chain- channel
>Ultimate basis for differentiation is the ability
to play a role in a buyers value chain - buyer
>Value chains vary for firms in an industry,
reflecting each firms unique qualities: (hss)- history, strategy and success at implementation
>are former core competencies that sow
the seeds of organizational inertia and prevent the firm
from responding appropriately to changes in the
external environment- core rigidities
>Leveraging of a firms resources,
capabilities and core competencies
to accomplish what may appear to
be unattainable goals in the compe-
titive environment - strategic intent
>A statement of the firms unique
purpose and the scope of its
operations in product market
Terms - strategic mission
>The resources and capabilities that have been
determined to be a source of competitive
advantage for a firm over its rivals. - core competency
>An integrated and coordinated set of
actions taken to exploit core competencies
and gain a competitive advantage. - strategy
>Actions taken to provide value to
customers and gain a competitive
advantage by exploiting core
competencies in specific,
individual product markets. - bvusines level strategy
>Basis for Customer Segmentation :Consumer Markets (dsgpcpb)factor - demographic, socioeconomic,
geographic, psychological, consumption , perceptual, brand loyal pattern
> Industrial market (epgcc)segment- end of use segment , product, geographic, common buying, customer
size
>generic bus. Level strategy:bbn;scu;. Cdff - core leadership , differentiation , focused on low cost, focus
on diff
>choices that drive cost (eaivp)