Strategic Managment Flashcards
What is strategic management?
Role of management when setting long term goals and implementing cross-fuctional decisions that enable a business to achieve these goals
What is the importance of strategic management?
To compare business current positions with competitors and external environment
Set/modify the mission, vision and objectives if business have a new direction
To integrate and coordinate the activities of the different functions
To allocate resources effectively according to priorities
To evaluate the overall performance and success of the business > to improve or keep up
What is competitive advantage?
The superiority gained by the business when it can provide the same value good or service as competitors, but at a lower price or greater value for its goods or services
Why is competitive advantage important?
Help with marketing > strong business awareness
Help with strategic alliance > to share resources tgt
To become a price leader > charge a higher price
To grow and venture into new markets
What are the ways to obtain competitive advantage?
To create greater value
To provide lower price
