test 1 study guide Flashcards
what is strategy
explicit, rigorous, formal planning versus a set of flexible, goal oriented actions
what are some strategy theories on how to compete successfully
- firms have both intended and emergent strategies
- one firms strategies may not work in all situations
- past success does not guarantee future success
- often difficult to change strategy
- it should give coherence to decisions and actions
- managers must exert strategic leadership
what does strategic management entail?
the analysis of internal and external environments of firms to maximize the utilization or resources in relation to objectives
definition of strategic management
formation, implementation and evaluation of managerial actions that enhance the value of the business enterprise. it is the process through which strategies are chosen and implemented. also centered on problems relating to the creations and sustainability to competitive advantage
how do firms behave? 3 views
industry based view- focuses on competitive forces
resource based view- focus on strength and weaknesses or capabilities
institution based view- government and societal forces
intended strategy
decisions are determined only by analysis
realized strategy
decisions determined by both analysis and unforeseen environmental developments and unanticipated resource constraints or changes in managerial preferences
static strategy
where are we competing?
how are we competing?
competing for the present
dynamic strategy
what do want to become?
what do we want to achieve?
how will we get there?
preparing for the future
industry definition
a group of firms producing good or services that are similar to each other
dominance of external environments
the industry itself has more influence than the managers decision making within organizations
industry properties determining performance
economies of scale barriers to market entry diversification product differentiation degree of concentration
industrial organizational model (IO)
focuses on environment outside of firm
resource based model
focuses on inside of firm
vision
an enduring picture of what the firm wants to be and achieve
corporate social responsibility
accepting responsibilities that extend beyond the interest of shareholders
for ethical reason
self interest
sustainability, reputation, license to operate
mission
is more concrete than a firms vision. more effective with strong ethical standards
the external environment consists of 3 things
the immediate industry environment
larger macro environment
environment of groups with a stake in the firm
factors beyond a firms control
demographic socio cultural legal/ political technological economic global
product width
number of different product lines
ex: GE sells fridges, dishwashers, etc
product length
the number of items in a product line
ex: the different types of fridges
product depth
the number of versions offered of each product in the line
ex: the different types of that specific fridge maybe one has an ice maker and the other does not
line extension
adding a new product to a line
ex: colors, styles, flavors, etc
line stretching
old navy, gap, banana republic
upward stretching
ex: toyota to lexus
downward stretching
banana republic to gap
product life cycle
how a certain product type evolves overtime
product audit
a marketing managements decisions regarding whether each product should be continued as is, improved, modified or deleted
brand
identifies one sellers good or service as distinct from competitors
brand equity
the set of assets or liabilities linked to the brand that add or subtract value
based on: differentiation, satisfaction, market share, perceived quality, brand personality
brand identity
the set of human characteristics associated with a brand
co branding
arrangement that associates a brand with another brand. two companies form an alliance toward together to create marketing synergy
brand portfolio
the set of all brands a particular form offers for sale in a particular product/ service category or segment
brand extension
using existing brand name to enter a completely different product class
