Chapter 1 Strategic Management Exam 1 Material – Flashcards
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An action a company takes to attain superior performance through the creation advantages.
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What is strategy?
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The process by which managers choose a set of "good" strategies for the enterprise to pursue its objectives.
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What is the strategic management process?
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A central objective of strategic management is to learn why some firms earn more economic profits that others.
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Why study strategic management process?
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Mission > Objectives > External and Internal Analysis > Strategic Choice > Strategy Implementation > Competitive Advantage
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The Strategic Management Process
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who we are, what are we going to do
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The mission or long term purpose of the company answers the question _________ and _________.
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how we are going to do it, measurable targets
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The objective of a company should answer the question ________ and should include ________.
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External Environment - External Opportunities and Threats
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Consolidation and the changing face of competition in an industry is an example of ________.
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Internal Strengths and Weaknesses
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Differences in resources and capabilities between firms are an example of ________.
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Strategic Choice
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Business Level Strategy is an example of a _________.
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business level strategies
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Walmart, Target, and Dollar stores compete with different resources/capabilities and different or overlapping market segments these strategies are an example of __________.
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Business-level strategies
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________ are actions firms take to gain competitive advantages in a single market or industry.
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Corporate-level strategies
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________ are actions firms take to gain competitive advantages by operating in multiple markets or industries simultaneously.
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corporate level strategies
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Domestic Expansions, Ventures, Vertical Integration, Diversification, Strategic Alliances, and Global Expansion are all examples of _________.
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competitive advantage
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The strategic management process includes effective theories on how to create ________.
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the pattern of actions and business approaches that define a company's strategy.
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Actions to: -Respond to changing market conditions, -Gain sales/market share via lower prices, higher, performances, better quality, etc., -Enter/exit new geographic or product markets, -Strengthen competitiveness via mergers/acquisitions or strategic alliances, and -Strengthen capabilities and neutralize weaknesses are
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Emergent strategies
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________ are theories of how to gain competitive advantage in an industry that emerge over time or that have been radically reshaped once they are initially implemented.
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the difference between the perceived benefits gained by a customer that purchases a firm's products or services and the full economic cost of these products or services
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Economic value
