Strategic Management and Strategic Competitiveness Flashcards
Firms achieve it by formulating and implementing a value creating strategy
strategic competitiveness
An integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage
strategy
A firm has it when by implementing a chosen strategy, it creates superior value for customers and when competitors are not able to imitate the value the firm’s products create or find it too expensive to attempt imitation
competitive advantage
Returns in excess of what an investor expects to earn from investments with a similar amount of risk
above-average returns
An investor’s uncertainty about the economic gains or losses that will result from a particular investment
risk
Returns equal to those an investor expects to earn from other investments possessing a similar amount of risk
average returns
The full set of commitments, decisions, and actions firms take to achieve strategic competitiveness and earn above-average returns
strategic management process
A condition where competitors engage in intense rivalry, markets change quickly and often, and entry barriers are low
hypercompetition
An economy in which goods, services, people, skills, and ideas move freely across geographic borders
global economy
A set of capabilities firms use to respond to various demands and opportunities existing in today’s dynamic and uncertain environment
strategic flexibility
Inputs into a firm’s production process, such as capital equipment, the skills of individual employees, patents, finances, and talented managers
resources
The capacity for a set of resources to perform a task or an activity in an integrative manner
capability
Capabilities that serve as a form of competitive advantage for a firm over its rivals
core competencies
A picture of what the firm wants to be, and in broader terms, of what it wants to achieve
vision
Specifies the businesses in which the firm intends to compete and the customers it intends to serve
mission
