Term
|
Definition
| Strategy competitiveness is achieved when a firm successfully formulates and implements a value creating strategy |
|
|
Term
|
Definition
Strategy is a integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage
|
|
|
Term
|
Definition
A firm has a competitive advantage when it implements a value-creating strategy that competitors are unable to duplicate or find too costly to try to imitate
|
|
|
Term
|
Definition
| Above average returns are returns in excess of what an investor expects to earn from other investments with a similar amount of risk |
|
|
Term
|
Definition
| Risk is an investor's uncertainty about the economic gains or losses that will result from a particular investment |
|
|
Term
|
Definition
| Average returns are returns equal to what an investor expects to earn from other investments with a similar amount of risk |
|
|
Term
| Strategic Management Process |
|
Definition
| Strategic mgmt process is the full set of commitments, decisions, and actions required for a firm to achieve strategic competitiveness and earn above-average returns |
|
|
Term
|
Definition
| A global economy is one in which goods, services, people, skills, and ideas move freely across geographic borders |
|
|
Term
|
Definition
| Globalization is the increasing economic interdependence among countries and their organizations as reflected in the flow of goods and services, financial capital, and knowledge across country borders |
|
|
Term
|
Definition
| Perpetual innovation is a term used to describe how rapidly, and consistently new, information-intensive technologies replace older ones |
|
|
Term
|
Definition
| Strategic flexibility is a set of capabilities used to respond to various demands and opportunities existing in a dynamic and uncertain competitive environment |
|
|
Term
|
Definition
| Resources are inputs into a firm's production process, such as capital equipment, the skills of individual employees, patents, finances, and talented managers |
|
|
Term
|
Definition
| A capability is the capacity for a set of resources to perform a task or an activity in an integrated manner |
|
|
Term
|
Definition
| Core competencies are resources and capabilities that serve as a source of competitive advantage for a firm over its rivals |
|
|
Term
|
Definition
| Vision is a picture of what the firm wants to be and in broad terms, what it wants to ultimately achieve |
|
|
Term
|
Definition
| A mission specifies the business in which the firm intends to compete and the customers it intends to serve |
|
|
Term
|
Definition
| Stakeholders are the individuals and groups who can affect, and are affected by, the strategic outcomes achieved and who have enforceable claims on a firm's performance |
|
|
Term
|
Definition
| Strategic leaders are people located in different parts of the firm using the strategic management process to help the firm reach its vision and mission |
|
|
Term
|
Definition
| Organizational culture refers to the complex set of ideologies, symbols, and core values that are shared throughout the firm and that influence how the firm conducts business |
|
|
Term
|
Definition
- Capital Market (shareholders, capital suppliers)
- Product Market (customers, unions, suppliers)
- Organizational (employees, managers, non-managers)
|
|
|
Term
Four Attributes of Resources and Capabilities
(Competitive Advantage)
VRIO |
|
Definition
Valuable
Rare
Costly to imitate
Organized to be exploited |
|
|
Term
|
Definition
| Allow the firm to exploit opportunities or neutralize threats in its external environment |
|
|
Term
|
Definition
| Possessed by few, if any, current and potential competitors |
|
|
Term
|
Definition
| When other firms cannot obtain them or must obtain them at a much higher cost |
|
|
Term
| Organized to be exploited |
|
Definition
| This firm is organized appropriately to obtain the full benefits of the resources in order to realize a competitive advantage |
|
|
