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Strategic Management > Chapter 1 > Flashcards

Chapter 1 Flashcards

1
Q

a company’s theory about how to gain competitive advantages is it’s what?

A

strategy

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2
Q

what is the strategic management process?

A

a sequential set of analyses and choices that can increase the likelihood that a firm will choose a good strategy, which generates competitive advantages

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3
Q

what are the steps in the strategic management process (6)

A
  1. mission
  2. objective
  3. external and internal analysis
  4. strategic choice
  5. strategy implementation
  6. competitive advantage
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4
Q

a firm’s long term purpose is its what?

A

mission

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5
Q

missions define what?

A
  1. what it aspries to be in the long run

2. what it wants to avoid in the meantime

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6
Q

why would a mission not affect performance?

A

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

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7
Q

what is a visionary firm?

A

one whose mission is central to all they do and whose mission and purpose permeate the business

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8
Q

how does mission help firm performance

A

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

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9
Q

how can a mission hurt performance

A

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

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10
Q

T/F

missions by themselves lead a firm to chooose and implement strategies that have competitive advantages

A

F it is only a first step

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11
Q

the specific measurable targets a firm can use to e3valuate the extent to which it is realizing its mission is its?

A

objectives

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12
Q

when are objectives high quality?

A

when they are tightly connect to elements of the mission and are easy to measure and track over time

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13
Q

when are objectives low quality?

A

dont exist, not econnected to mission, not quantitiative, difficult to measure or track over time

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14
Q

when is indication that firm not serious about realizing part of its mission?

A

when no objectives or only low quality ones

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15
Q

T/F

external and internal analysis occure more or less simultaneously

A

T

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16
Q

what do firms identify in external analysis?

A

critical threats and opportunies in competitive environment

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17
Q

external analysis aslo looks at what?

A

how competition i s likely to evolve and the implications it has for the threats and oppportunities they face

18
Q

strategy choices availlable to firms fall into what 2 categories

A

business level strategies

corporate level strategies

19
Q

what are business level strategies? what are the 2 most common strategies?

A

actions firms take to gain advantages in a single market or industry. cost leadership and product differentiation

20
Q

what are corporate level strategies? what are the types 5)

A

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

21
Q

what are the 4 objectives for making strategic choice. making a strates that…..

A
  1. support the mission
  2. consistient with objectives
  3. exploit opportun with strength
  4. neutrali threats while avoiding weaknesses
22
Q

strategy implementation occurs when

A

firm adopts policies and pradctices that are consistent with its strategy

23
Q

whate are the 3 organ policies and practices that are importan in implement strate?

A

formal organ structure
formal and informal management control systems
employee comp policies

24
Q

what is compet advantage

A

when create more econ value that rivals

25
Q

what is econ value

A

difference in percieve benefit to cuwstomers and total cost

26
Q

size of compet advantage is ?

A

difference between econ value create and econ value of its rivals

27
Q

what are the 4 factctor in industry that can provide longer compet advantage

A
  1. inofmrationally complex
  2. require customers to know a great doal to use it
  3. require a great dal of research anad development
  4. significan economies of scales
28
Q

what are the two approaches for measuring firms competitive advantage

A

accounting

economic

29
Q

accounting approach to measure competive difficult because?

A

EXTENT STRANDS AND PRINCIPLS ARE NOT APPLIED in generate statements or extent that diff firms use differnt account standars

30
Q

what is way to use account statement to measure competitve advantatge

A

accounting ratios

31
Q

what is business model?

A

the set of activities that firm engages in to create and appropriate economic value

32
Q

what is another approach besides stratgegic planning

A

identify the activities that can help firm create and appropriate econ value and then specifiy how firm accomplishes these activities

33
Q

what is center of business model canvas?

A

value propositions- statement how creat value for customers, cust problems try to solve , which cust focus on, etc.

34
Q

once figure out value propositions, firms needs to know what 3 key things?

A

key activiite, key resources, key partners.

35
Q

value prop determins what 3 things?

A

citiical custom relationship, channels need to use to reach them and which cust segments will address

36
Q

if not strate manage process then?

A

key activ, key resouce, key partner, cust relation, channel, and cust segments support execution of value propostions so will imporve cost struction and revenue streatms. differe3 in reven and costs is measur eof econ value

37
Q

what are the 4 aqccounting ratios?

A

profitability
liquidity
leverage
activity

38
Q

accounting performance using ratio analysis what are the equations for competitive advantage.

A

compares to industry averages first of all
above averaqge accounting performance = competitive advantage
average account perfor+ competi parity
below aver acct per+ compet disadvantage

39
Q

cost of capital not includ3ed in account measure of competive advantage but in economic measure

A

x

40
Q

econ measure of compet advanate compare firms level of return to its cost of capitalinstead of average level

A

x

Strategic Management (24 decks)

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