Ch 2. Context, Vision & Mission Flashcards
What is strategic management about?
Hint: what do strategies lead to?
Formulating and implementing strategies that allow an organization to gain and maintain a competitive advantage.
What is a competitive advantage?
- it sets a company apart from others
- refers to leverage a company has over others
- survival and long-term success
- it’s the purpose of strategic management
- requires understanding and capitalizing on the environment
What are the 3 views of competitive advantage?
- Industry based view (I/O) - external focus
- Resource-based view - internal focus
- Guerrilla view - dynamic
What are the 5 organizational resources? Give examples for each.
- financial (cash, reserves, debt, equity)
- physical (equipment, buildings, raw materials, inventory)
- human (KSA, experience, competencies)
- intangible (patents, trademarks, brand names)
- structural/cultural (work systems, policies, trust, culture)
What makes resources unique?
- it adds value (it can be applied to the environment)
- rare
- hard to imitate
- exploitable
What are the 3 drivers of the business environment?
- information
- technonology
- globalization
What are the implications of the business environment drivers?
- continual change
- reduced need for physical asserts
- vanishing distance/compressed time
- vulnerability
What are the 3 critical success factors in the business environment?
- embrace change
- creativity and innovation capabilities
- be a world-class organization (ethical/socially responsible)
What are the characteristics of a world-class organization?
- customer focused
- continual learning & improvement
- flexible organization structure
- creative HR management
- egalitarian climate
- significant tech support
What is a vision statement?
A broad comprehensive picture of what the leader wants the organization to become.
- single statement of what it stands for, believes in, why it exists
- contributed to increased levels of effort
What are the 4 components of an effective vision statement?
- built on foundational values/beliefs
- elaborates purpose
- explains what the organization does
- specifies goals and guides action
What is a mission statement?
A statement of what the company does and hopes to accomplish (present focused). It is built on the vision statement.
What are the 9 factors a mission statement must involve?
- customers
- product/service
- markets
- technology
- philosophy
- concern for survival, profit, growth
- self-concept
- concern for public image
- employees
