Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

MGMT 471 > Ch. 1 > Flashcards

Ch. 1 Flashcards

1
Q

Three components of strategic management

A

Analysis
Formulation
Implementation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

The goal of strategic management

A

to gain and sustain a competitive advantage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Definition: Strategy

A

a set of goal directed actions a firm takes to gain and sustain superior performance relative to competitors

  • get there, stay there, excel there
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

In order to achieve superior performance, companies compete for resources, like:

A

New ventures: for financial and human capital
Existing companies: for profitable growth
Charities: for donations
Universities: for the best students and professors
Sports teams: championships
Celebrities: media attention

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Definition: Analysis

A

Diagnosis of the competitive challenge

- SWOT

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Definition: Formulation

A

Guiding policy to address the competitive challenge

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Defintion: Implementation

A

A set of coherent actions to implement the firm’s guiding policy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Definition: Strategic Management

A

an integrative management field that combines analysis, formulation, and implementation in the quest for a competitive advantage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Defintion: Competitive Advantage

A

superior performance relative to other competitors in the same industry or the industry average

  • performing different activities or performing same activities better than rivals
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Definition: Sustainable Competitive Advantage

A

outperforming competitors or the industry average over a prolonged period of time

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Definition: Competitive Disadvantage

A

underperformance relative to other competitors in the same industry or the industry average

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Definition: Competitive Parity

A

performance of two or more firms at the same level

ex. BMW and Mercedes Benz

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

The key to creating is competitive advantage is _________ > ___________

A

Value > Cost
the larger the difference, the more money you make
- create more value for less depending on your go to market strategy
ex. Walmart clothes vs. Nordstrom

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Three things a competitive advantage is NOT:

A
  1. Grandiose statements
    - Hope is not a strategy
  2. A failure to face a competitive challenge
    • blockbuster
  3. Operational effectiveness, competitive benchmarking, or other tactical tools
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Firm performance is determined by two factors:

A
  1. Industry effects

2. firm effects

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Which factor, industry or firm, has more influence over the determination of performance for a company?

A

Firm: 55% choose to react to a market, Internal decisions

17
Q

A “good” stakeholder strategy helps to:

A

generate value for society

  • Provide products or services to consumers at an affordable price
  • Make a profit
  • Benefit both parties
  • Make society better
18
Q

Definition: Black Swan Event

A

Profound impact of a highly improbable and unexpected event

- something unanticipated

19
Q

Defintion: Stakeholders

A
  • Organizations, groups, and individuals that can affect or are affected by a firm’s actions.
  • Have a vested claim or interest in the performance and continued survival of the firm.
20
Q

Internal vs. External Stakeholders

A

Internal: Stockholders, employees, board members

External: Communities, customers, suppliers, partners, creditors, unions, governments, media

21
Q

Definition: Stakeholder Strategy

A

Managing stakeholders in order to gain and sustain competitive advantage

  • Firms analyze and manage stakeholders
  • Determine how external and internal stakeholder’s interact
  • Stakeholder’s can create and trade value
22
Q

Definition: Stakeholder Impact Analysis

A

A decision tool with which managers can recognize, assess, and address the needs of different stakeholders, allowing the firm to achieve competitive advantage while acting as a good corporate citizen.

Power, legitimacy, urgency

23
Q

5 Q’s of the Stakeholder Impact Analysis

A
  1. Who are stakeholders?
  2. What are their interests and claims?
  3. What opportunities and threats do they possess?
  4. What economic, legal, ethical, and philanthropic responsibilities do we have towards SH?
  5. What should we do to address their concerns?
24
Q

Definition: Corporate Social Responsibility

A

A framework that helps firms recognize and address the economic, legal, social, and philanthropic expectations that society has toward business

25
Q

The four components of corporate social responsibility:

A
  1. Economic (return on investment, paying bills, etc.)
  2. Legal (following laws)
  3. Ethical (doing what’s right and beyond what’s required)
  4. Philanthropic (service, corporate citizenship)
    * can’t do the 2nd without having the first, and so on

MGMT 471 (7 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions