Chapter 1 Flashcards
a company’s theory about how to gain competitive advantages is it’s what?
strategy
what is the strategic management process?
a sequential set of analyses and choices that can increase the likelihood that a firm will choose a good strategy, which generates competitive advantages
what are the steps in the strategic management process (6)
- mission
- objective
- external and internal analysis
- strategic choice
- strategy implementation
- competitive advantage
a firm’s long term purpose is its what?
mission
missions define what?
- what it aspries to be in the long run
2. what it wants to avoid in the meantime
why would a mission not affect performance?
if it doesnt influence behavior thru the organ , unlikelyh to have much impact on firms actions. plus many common elements makes you wonder if it creates value. like what business it will do how they will compete in those businesses and the core values they espouse
what is a visionary firm?
one whose mission is central to all they do and whose mission and purpose permeate the business
how does mission help firm performance
it permeates what they do they dont sacrifice values and beliefs for short term advantages. pressure for short term performance balanced by widespread commitment to values on beliefs that focus on long term performance
how can a mission hurt performance
inwardly focused and defined only by personal values and prioritiews of founders or top mangers even if those values and priorities are inconsistent with the economic realities facing firm
T/F
missions by themselves lead a firm to chooose and implement strategies that have competitive advantages
F it is only a first step
the specific measurable targets a firm can use to e3valuate the extent to which it is realizing its mission is its?
objectives
when are objectives high quality?
when they are tightly connect to elements of the mission and are easy to measure and track over time
when are objectives low quality?
dont exist, not econnected to mission, not quantitiative, difficult to measure or track over time
when is indication that firm not serious about realizing part of its mission?
when no objectives or only low quality ones
T/F
external and internal analysis occure more or less simultaneously
T
what do firms identify in external analysis?
critical threats and opportunies in competitive environment
external analysis aslo looks at what?
how competition i s likely to evolve and the implications it has for the threats and oppportunities they face
strategy choices availlable to firms fall into what 2 categories
business level strategies
corporate level strategies
what are business level strategies? what are the 2 most common strategies?
actions firms take to gain advantages in a single market or industry. cost leadership and product differentiation
what are corporate level strategies? what are the types 5)
actions firms take to gain advantage by operating in multiple markets or industries simultaneously. types are vertical integrateion, diversification, strategic alliance, merger and acqusions, and global strategies
what are the 4 objectives for making strategic choice. making a strates that…..
- support the mission
- consistient with objectives
- exploit opportun with strength
- neutrali threats while avoiding weaknesses
strategy implementation occurs when
firm adopts policies and pradctices that are consistent with its strategy
whate are the 3 organ policies and practices that are importan in implement strate?
formal organ structure
formal and informal management control systems
employee comp policies
what is compet advantage
when create more econ value that rivals
