What is Strategy? Flashcards
Strategy
a set of goal-directed actions a firm takes to gain and sustain superior performance relative to competitors
A good strategy consists of three elements
Analysis–a diagnosis of the competitive challenge
Formulation–a guiding policy to address the competitive challenge
Implementation– a set of coherent actions to implement the firm’s guiding policy
Analysis
strategic leadership
external analysis
internal analysis
Formulation
business strategy
corporate strategy
Implementation
org design
corporate governance
competitive advantage
superior performance relative to other competitors in the same industry or the industry average
sustainable competitive advantage
outperforming competitors or the industry average over a prolonged period of time
competitive disadvantage
underperformance relative to other competitors in the same industry or the industry average
competitive parity
performance of two or more firms at the same level
industry effects
firm performance attributed to the structure of the industry in which the firm competes
firm effects
firm performance attributed to the actions managers take
stakeholders
organizations, groups, and individuals that can affect or are affected by a firm’s actions
stakeholder strategy
an integrative approach to managing a diverse set of stakeholders effectively in order to gain and sustain competitive advantage
stakeholder impact analysis
a decision tool with which managers can recognize, prioritize, and address the needs of different stakeholders, enabling the firm to achieve competitive advantage while acting as a good corporate citizen
corporate social responsibility (CSR)
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
