Chapters 1-3 Flashcards
What is strategic competitiveness?
When a firm successfully formulates and implements a value creating strategy
What is a strategy?
An integrated and coordinated set of commitments and actions to gain competitive advantage.
Competitive Advantage
When competitors are unable to duplicate or find too costly to imitate.
Above average returns
Are in excess of what an investor expects to earn from other investments with a similar amount of risk.
Strategic flexibility
The capabilities used to respond to various demands and opportunities existing in a dynamic and uncertain competitive environment.
Resource based model
Assumes that each organization is a collection of unique resources and capabilities
Core competencies
Resources and capabilities that serve as a source of competitive advantage, they are often visible in the form of organizational functions.
Mission
Specifies the business or businesses in which the firm intents to compete and the customers it intends to serve.
General environment
Composed of dimensions in the broader society that influence an industry and the firms within.
External environment - industry
Demographic
Economic
Physical
Sociocultural
External environment - competitor
Political
Technological
Global
Components of the external environment analysis
Scanning
Monitoring
Forecasting
Assessing
Five forces of the competition model
- Threat of new entrants
- Bargaining power of suppliers
- Bargaining power of buyers
- Threat of substitute products
- Rivalry among competing firms
Competitor intelligence
A set of data and information the firm gathers to better understand and anticipate competitors’ objectives, strategies, assumptions, and capabilities.
Global mind set
The ability to analyze, understand and manage an internal organization in ways that are not dependent on the assumptions of a single country, culture, or context.
