Chapter 1 Strategic Management Exam 1 Material

Flashcard maker : Lily Taylor
What is strategy?
An action a company takes to attain superior performance through the creation advantages.
What is the strategic management process?
The process by which managers choose a set of “good” strategies for the enterprise to pursue its objectives.
Why study strategic management process?
A central objective of strategic management is to learn why some firms earn more economic profits that others.
The Strategic Management Process
Mission >
Objectives >
External and Internal Analysis >
Strategic Choice >
Strategy Implementation >
Competitive Advantage
The mission or long term purpose of the company answers the question _________ and _________.
who we are, what are we going to do
The objective of a company should answer the question ________ and should include ________.
how we are going to do it, measurable targets
Consolidation and the changing face of competition in an industry is an example of ________.
External Environment – External Opportunities and Threats
Differences in resources and capabilities between firms are an example of ________.
Internal Strengths and Weaknesses
Business Level Strategy is an example of a _________.
Strategic Choice
Walmart, Target, and Dollar stores compete with different resources/capabilities and different or overlapping market segments these strategies are an example of __________.
business level strategies
________ are actions firms take to gain competitive advantages in a single market or industry.
Business-level strategies
________ are actions firms take to gain competitive advantages by operating in multiple markets or industries simultaneously.
Corporate-level strategies
Domestic Expansions, Ventures, Vertical Integration, Diversification, Strategic Alliances, and Global Expansion are all examples of _________.
corporate level strategies
The strategic management process includes effective theories on how to create ________.
competitive advantage
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
the pattern of actions and business approaches that define a company’s strategy.
________ 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.
Emergent strategies
Economic value
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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