The analyses, decisions, and actions an organization undertakes in order to create and sustain competitive advantages

A firm’s resources and capabilities that enable it to overcome the competitive forces in the its industry. 

Assessment of a firm’s financial, social, and environmental performance

Organizational Goals that evoke powerful and compelling mental images

 A set of organizational goals that include both the purpose of the organization, its scope of operations, and the basis of its competitive advantage

Framework for analyzing a company’s internal and external environment and that stands for strengths, weaknesses, opportunities and threats. 

 Surveillance of a firm’s external environment to predict environmental changes and detect  changes already under way. 

The dual trends of (a.) Increasing international exchange of goods, money, information, people, and ideas and (b.) increasing similarity among countries of laws, rules, norms, values, and income levels

1.)   Competitive Rivalry within an industry:

2.)   Bargaining power of suppliers

3.)   Bargaining power of customers

4.)   Threat of new entrants

 Products or services that have an impact on the value of a firm’s products or services

Clusters of firms that share similar strategies 

 A strategic analysis of an organization that uses value-creating activities

 Internal Analysis, External Analysis

Perspective that firms’ competitive advantages are due to their endowment of strategic resources that are valuable, rare, costly to imitate and costly to substitute. 

A method of evaluating a firm’s performance using performance measures from the customer’, internal, innovation and learning, and financial perspectives. 

Customer Perspective

Internal Business Perspective

Innovation and Learning Perspective

Financial Perspective

An economy where wealth is created through the effective management of knowledge workers instead of by the efficient control of physical and financial assets. 

Low Cost Position

Focus Strategy

Differentiation

Firm’s integrations of various strategies to provide multiple types of value to customers

A firm’s ability to manufacture unique products in small quantities at low cost

 Intro, Growth, Maturity, Decline

Types of competitive advantage and sustainability:

Overall Cost Leadership,

Differentiation

Focus Strategy

A firm’s generic strategy based on appeal to the industry wide market using a competitive advantage based on low cost. 

A firm’s generic strategy based on creating differences in the firm’s product or service offering by creating something that is perceived industrywide as unique and valued by customers

 A firm’s generic strategy based on appeal to a narrow market segment within an industry 

 A firm’s integrations of various strategies to provide multiple types of value to customers

 A firm’s ability to manufacture unique products in small quantities at low cost. 

Stages of introduction, growth, maturity, and decline that typically occur over the life of an industry

 Reverses a firm’s decline in performance and retains it to growth and profitability

A firm entering a different business in which it can benefit from leveraging core competencies, sharing activities, or building market power. 

Economies of Scope-

A firm’s strategic resources that reflect the collective learning in the organization

 Having activities of two or more businesses value chains done by one of the businesses

firm’s abilities to profit through restricting or controlling supply to a market or coordinating with other firms to reduce investment

 The improvement in bargaining position relative to supplies and customers

An expansion or extension of the firm integrating preceding or successive production processes

A perspective that the choice of a transaction’s governance structure is influenced by transaction costs associated with each choice

A firm entering a different business that has little horizontal interaction with other businesses of a firm

Positive contributions of the corporate office to a new business as a result of expertise and support provided and not as a result of substantial changes in assets, capital structure, or management. 

another means by which the corporate office can add value to a business

            Asset Restructuring

            Capital Restructuring

            Management Restructuring

 a method of

(a.) Assessing the competitive position of a portfolio of businesses within a corporation

(b.) Suggesting strategic alternatives for each business

(c.) To identifying the allocation of resources across the businesses 

Mergers and Acquisitions

Divestment- exit of a business from a firm’s portfolio

A cooperative relationship between two or more firms

 New entities formed within a strategic alliance in which two or more firms, the parents, contribute equity to form the new legal entity

 Managers acting in their own self-interest rather than in maximizing long-term shareholder value.

A payment by a firm to a hostile party for the firm’s stock at a premium, made when the firm’s management feels that the hostile party is about to make a tender offer

a prearranged contract with managers specifying that, in the event of a hostile takeover, the target firm’s managers will be paid a significant severance package

Used by a company to give shareholders certain rights in the event of takeover by another firm