Brainscape's Knowledge GenomeTM

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


See full index

Competitive Strategy > Chapter 1 > Flashcards

Chapter 1 Flashcards

1
Q

Define Strategy

what if this results in superior performance over others

A

Set of related actions that managers take to increase their company’s performance

If this causes superior performance it is a competitive advantage

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

Define Strategic leadership

A

This managing the process that you make strategies in order to obtain a competitive advantage

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

What is the strategy formulation process?

A

This is when you only select strategies after a thorough analysis of the companies external and internal environement

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

What is it called to put a strategy into action

A

Strategy implementation

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

What are the 4 determinants of shareholder value?

A
  1. Effectiveness of strategies which influence
  2. Proitibaility (ROIC) and Profit Growth (3)

which in influence (4) shareholder value

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

What is the capital that cannot be recovered if a company fails and goes bankrupt

A

Risk capital,

which yeah, is equity capital that the stockholders should not expect toes again if it goes under

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

What are the returns that shareholders earn from purchasing shares in a company

What are the two sources of these returns?

A

Shareholder value

  1. capital appreciation in the value of a company’s shares
  2. dividend payments
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Define profitability

A

Really its how efficiently and effective managers use their budgets to make more money

So ROIC is a good measurement

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

What is ROIC

A

Return on invested capital

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What are the two principal drivers of shareholder value?

A

Profitability and profit growth

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

What is normal and sustained competitive advantage?

A

This is when profitabliity of a company is greater than the average, and sustained means that it can sustain this run for a number of years such as walmart for the past couple decades

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

What are the key parts of a business model?

A
  1. who are customers
  2. define and differentiate product
  3. how create value
  4. how acquire customers
  5. how to produce goods/services
  6. how to lower costs
  7. How to deliver
  8. how to organize internally
  9. configure resources
  10. achieve high profitibilatiy
  11. GROW profitbaility
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What is the difference between general and functional managers?

A

General managers look over entire company performance for major divisions, whereas functional managers ensure that tasks are being done via supervision and whatnot. So basically general is more macro

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

What is a multidivisional company?

A

This is not a business with departments, this is when a company has created separate self-contained divisions to manage each of themselves so like Apple may have a retail division, product dev division, etc

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What is a self contained division that provide a product or service for a particular market

A

This is a business unit, so something like finance, purchasing, production, marketing, etc all under a roof of say Electric Car alongside the iPhone business unit at Apple

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

Am I a functional or general manager?

A

As marketing manager I am more of a general manager, and then if we had say a customer support manager, they’d likely work under me

17
Q

What are the 5 main steps to the formal strategic plannign process?

A
  1. Select the corporate mission and major corporate goals
  2. Analyze the external enviro to see if theirs any threats or opportunities
  3. Analyze internals to identify strengths or weaknesses
  4. Select starts that build on organizations strengths, and correct weaknesses to seize opportuntniitese or defend against threats, all in line with goals and mission of company
  5. Implement!
18
Q

What is the missions statement?

A

First component of strategic management process.

Provides context for which the company to operate and what it strives to do.

19
Q

What are the vision and values of company?

A

Vision is how the company sees it’s future state and achievements

Values are how the business and employees whnt to conduct themselves to achieve the company mission

20
Q

Well made goals have what 4 characteristics?

A
  1. Precise and measurable
  2. Address critical issues, not fluff
  3. Challenging, but realistic to meet
  4. They are time constrained
21
Q

What are three enviros that should be analyzed with extneral analysis?

A
  1. industry environment
  2. country or national environment
  3. wider socioeconomic or macroenvironemnt
22
Q

What are the 4 main categories of possible strategies that can make a competitive advantage?

A
  1. Functional level
    - imrpove operations such as marketing or manufacturing
  2. Business level
    - Posiitiong, cost leadership, differentionak, etc
  3. Global strategies
    - Expand!
  4. Corporate level
    - WHich businesses should we be in? Such as roots going to airline, shouldn’t have been in airline ha
23
Q

What is the feedback loop?

A

never ending loop between strategy implementation and assessment for next strategy

24
Q

How to emergent and deliverable strategies work?

A

So a deliberate srategy is one that is planned and goes accordingly

An emergent strategy is one that was planned, had an unpredicted change that it survived and then flourished, and became and emergent strategy facilitated by the unplanned/autonomous action of lower-level managers to become the realized strategy

An example of emergent is when Honda went to sell in America, and unplanned untraditional retailers such as Sears wanted to sell them, it happened and was a great success that didn’t alienate serious bikers (maybe)

25
Q

What is the process of formulating plans based on what if scenarios about future?

A

Scenario planning

26
Q

What is using simple analogies to make sense of complex problems (not good)?

A

Reasoning by anology

27
Q

3 technies for improving decision making

A
  1. Devils advocacy
    - one member identifies all consideration that could make proposal unacceptable
  2. Dialectic inquiry
    - Generate a plan (thesis) and a counterplan (antithesis) to reflect plausible but conflicting courses of action
  3. Outside view
    - Look at past good or bad initiatives to see if they will work for current project
28
Q

How can strategies emerge? (emergent strategies)

A

From deep within organization without formal planning through lower-level managers response to unpredicted situations

29
Q

What are some attributes for good leaders of the strategy making process?

A
  1. Vision
  2. Eloquence
  3. consistency
  4. able to craft bus model
  5. commitment
  6. well informed
  7. willingness to delegate and empower
  8. political astuteness
  9. EQ

Competitive Strategy (8 decks)

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