STRAMA MIDTERM REVIEWER Flashcards
Outperforming competitors or the industry average over a prolonged period of time
Sustainable competitive advantage
Superior performance relative to other competitors in the same industry or the average industry
Competitive Advantage
Performance of two or more firms at the same level
Competitive Parity
_______ is the set of goal-directed actions that a firm takes to gain and sustain superior performance relative to competitors
Strategy
The outcome of a rational and structured top-down strategic plan
Intended Strategy
Individuals or groups that have a claim on or interest in the firms performance and continued survival. They make specific contributions for which they expect rewards in return
Stakeholder strategy
Statement of principles to guide an organization as it works to achieve it’s visio. and fulfill mission, for both internal and external interactions; it often includes explicit ethical considerations.
Core Values
Statement of principles to guide an organization as it works to achieve it’s visio. and fulfill mission, for both internal and external interactions; it often includes explicit ethical considerations.
Core Values
A statement that captures an organization’s purpose and aspiration. It spells out what the organization ultimately wants to accomplish
Vision
_____ is a description of what an organization does, the products and services it plans to provide, and the markets in which it will compete
Mission
A Strt h goal that pervades the entire organization with a sense of purpose
Strategic Intent
The driving force behind organizational success.It involves executives using their power and influence to guide their organizations towards achieving competitive advantage.
Strategic Leadership
Strategy process in which organizational and structure and system allow bottom-up strategic initiatives to emerge and be evaluated and coordinated by top management.
Strategy as planned emerge
One of the AFI Strategy Framework that focuses on putting the strategy into action, allocating resources, developing organizational structures, and motivating employees.
Implement
One of the AFI Strategy Framework that focuses on developing strategic goals, objectives, action plans based on the analysis. This involve crafting a vision, mission, and core values.
Analysis
A framework that helps firms recognize and address the economic, legal, social, and philanthropic expectations that society has of the business enterprise at a given point in time.
Corporate Social Responsibility (CSR)
The choice of strategy, including where and how to compete
Strategy Formulation
A rational, data-driven strategy process through which top management attempts to program the future success.
Top-Down Planning
One of the key elements of strategic management process to address the competitive challenge through strategy formulation
Guiding Policy
Strategy planning activity which top managememt envision different what-if scenarios to anticipate plausible futures in order to derive strategic responses
Scenario Planning
A_____ is needed to identify the competitive challenge. It includes analys
zing the firms external and internal environments
Diagnosis
Any assets that a firm can draw on when formulating and implementing a strategy
Resources
The number of firms that possess it is less than the number of firms it would require to reach a state of perfect competition
Rare Resources
It helps a firm exploit an external opportunity or offset an external threat.
Valuable Resource
Assumption in the resources-based view that a firm has resources that tend to be “sticky” and that do not move easily from firm to firm.
Resource Immobility
The internal activities a. firm engages in when transforming input into output; each activity adds
Value chain
A process in which the options in a current situation are limited by decisions made in the past
Path Dependence
The amount that creditors earn for lending their money and the amount that debtors pay to use that money, adjust for inflation.
Interest Rates
Type of macroeconomics factors that measures the change in the value of goods and services produced by a nation’s economy.
Growth Rate
Determines how many dollars one must pay for a unit of foreign currency
Currency exchange rates
A critical intangible resource that can provide a strong isolating mechanism, thus help sustain a competitive advantage.
Intellectual property(IP) Protection
The relative bargaining power of suppliers is high when.
They offer products that are differentiated
Describe a firm’s ability to create, deploy, modify, reconfigure, upgrade and leverage its resources over time in its quest for competitive advantage
Dynamic Capabilities
Organizational and managerial skills necessary to orchestrate a diverse set of resources and deploy them strategically
Capabilities
An external factor that captures a society’s cultures, norms, and values
Socio cultural
An external factor that results from the pressure of various groups such as government bodies, nongovernmental organizations (NGOs), and social movements can exert to influence the decisions and behavior of firms.
Political Factors
The threat of substitutes is high when
The substitute offers an attractive price/performance trade-off.
The power of buyers is high when
Face low or no switching cost
This relates to the pressure they can put on the producers margins by demanding a lower price or higher product quality
Power of buyers
Unique strengths, embedded deep within a firm, that are critical to gaining and sustaining competitive advantage
Core Competencies
The risk of potential competitors entering the industry
Threat of entry
A framework that proposing strategic leaders main a dual focus on shareholder value creation and value creation for society
Shared Value Creation
A framework to help managers achieve their strategic objectives more effectively. This approach harnesses multiple internal and external performance metrics to balance financial goals and strategic goals.
Balanced Scorecard
A firm performance metric that captures the total dollar market value of a company’s total outstanding shares at any given point in time
Market Capitalization
The difference between a buyer’s willingness to pay for a product or service and the firms total cost to produce it.
Economic value Creation
The difference between the price charged (P) and the cost to produce ( C) and another term for profit.
Producer surplus
Difference between the value a consumer attaches to a good or services (V) and what he. or she paid for it (P), or (V - P).
Consumer Surplus
Combination of economic, social, and ecological concerns, that can lead to a sustainable strategy.
Triple bottom line
The money provided by shareholders in exchange for an equity share in a company, it cannot be recovered if the firm goes bankrupt.
Risk Capital
The idea that all available information about a firm’s past, current state, and expected future performance is embedded in the market price of the firm’s stock is called
Efficient-market Hypothesis
The triple bottom line or 3Ps dimension.
Profit
People
Planet
Not included - Power
Generic business strategy that seeks to create the same or similar value for customers at a lower cost
Cost-Leadership Strategy
Generic business strategy that seeks to create higher value for customers than the value that competitors create, while containing costs
Differentiation Strategy
Generic business strategy that seeks to create the same or similar value for customers at a lower cost except with a narrow focus on a niche market
Focused Cost-leadership strategy
The goal-directed actions managers take in their quest for competitive advantage when competing in a single product market.
Business-level strategy
Decreases in cost per unit as output increases
Economies of scale
