MGMT 485 Test 1

  1. strategic competitiveness
    achieved when a firm successfully formulates & implements a value-creating strategy
  2. strategy
    an integrated & coordinated set of commitments & actions designed to exploit core competencies & gain a competitive advantage; indicates what the firm will do as well as not do
  3. competitive advantage
    a strategy that creates superior value for customers, competitors are unable to duplicate the benefits or the source, & is too costly to imitate; has resulted only afer competitors' efforts to duplicate strategy have cease or failed
  4. above-average returns
    better than available at similar risk elsewhere; in excess of what an investor expects to earn from other investments with a similar amount of riskĀ 
  5. risk
    an investor's uncertainty about the economic gains or losses that will result from a particular investment; range of possible economic results
  6. strategic management process
    the full set of commitments, decisions, & actions required for a firm to achieve strategic competitiveness and earn above-average returns
  7. resources
    inputs into a firm's production process; ex. capital equipment, the skill of individual employees, patents, finances, & talented managers
  8. capability
    the capacity for a set of resources to perform a task or an activity in an integrative manner; often based on developing, carrying, & exchanging info. & knowledge through the firm's human capital
  9. core competencies
    resources & capabilities that serve as a source of competitive advantage (and creates economci value) for a firm over its rivals
  10. vision
    a picture of what the firm wants to be and what it wants to ultimately achieve; what we can become; inspirational; mental picture of a possible & desirable state; challenges people; reflect a firm's values & aspirations
  11. mission
    specifies the businesses in which the firm intends to compete & the customers it intends to serve; our reason for being; establishes a firm's individuality; guides ethically sound behaviors
  12. stakeholders
    the individuals, groups, orgs. that can affect the firm's vision & mission, are affected by the strategic outcomes achieved, and have enforceable claims on the firm's performance
  13. strategic leaders
    people located in different areas & levels of the firm using the strategic management process to select strategic actions that help the firm achieve its vision and fulfill its mission; decisive, committed to nurturing those around them, & committed to helping the firm create value for all stakeholder groups
  14. organizational culture
    the complex set of ideologies, symbols, & core values that are shared throughout the firm and that influence how the firm conducts business
  15. general environmemt
    composed of dimensions in the broader society that influence an industry & the firms within it; 7 segments= demographic, economic, political/legal, sociocultural, technological, global, & physical; can't be controlled
  16. industry environment
    the set of factors that directly influences a firm & its competitve actions and responses; the threat of new entrants, the power of buyers & suppliers, the threat of product substitutes, & the intensity of rivalry among competitors
  17. opportunity
    a condition in the general environment that if exploited effectively, helps a company achieve strategic competitveness
  18. threat
    a condition in the general environment that may hinder a company's efforts to achieve strategic competitiveness
  19. demographic segment
    concerned with a population's size, age, geographic distribution, ethnic mix, & income distribution (purchasing power & discretionary income); a statistical description of a population (numbers)
  20. economic environment
    the nature and direction of the economy in which a firm competes or may compete; should be relatively stable w/ strong growth potentialĀ 
  21. political/legal segment
    the arena in which orgs. & interest groups compete for attention, resources, & a voice overseeing the body of laws & regulations guiding interactions among nations as well as between firms & various local governmental agencies
  22. sociocultural segment
    concerned with a society's attitudes & cultural values; ex. more women & minorities are entering the workforce in various cultures, more temporary workers being employed
  23. technological segment
    the institutions and activities involved with creating new knowledge & translating that knowledge into new outputs, products, processes, & materials; early adopters= higher market shares & higher returns
  24. global segment
    includes relevant new global markets, existing markets that are changing, important international political events, & critical cultural & institutional characteristics of global markets; ex. WTO issues
  25. physical environment segment
    refers to potential & actual changes in the physical environment & business practices that are intended to positively respond to & deal with those changes; ecological systems, global warming, energy consumption, influence this
  26. industry
    a group of firms producing products that are close substitutes; they influence each other
  27. strategic group
    a set of firms that emphasize similar strategic dimensions & use a similar strategy
  28. value
    measured by a product's performance characteristics & by attributes for which customers are willing to pay; created by low cost and/or highly differentiated features
  29. tangible resources
    assets that can be observed & quantified; production equipment, trademarks, patents, manufacturing facilities, distribution centers, food ingredients; constrained=has limitations=what you see is what you get; depleted w/ use, can usually be duplicated
  30. intangible resources
    assets that are rooted deeply in the firm's history, accumulate over time, & are relatively difficult for competitors to analyze & imitate; knowledge, trust, scientific capabilities, the firm's reputation, org. culture; can't see, difficult for competitors to understand, purchase, imitate, or substitute for
  31. valuable capabilities
    allow the firm to exploit opportunities or neutralize threats in its external environment
  32. rare capabilities
    that few, if any, competitors possess; many means no core competence
  33. costly to imitate (or impossible) capabilities
    that other firms can't easily develop; through unique historical conditions (org. culture, brand name), the causes & uses of a competence are unclear, & social complexity (trust, friendships, reputation)
  34. nonsubstitutable capabilities
    do NOT have strategic capabilities; more intangible & invisible
  35. outsourcing
    the purchase of a value-creating activity or a support function activity from an external supplier; only for activities that can't create value or are at a substantial disadvantage compared to competitors
  36. business-level strategy
    an integrated & coordinated set of commitments & actions the firm uses to gain a competitive advantage by exploiting core competencies in specific product markets; indicates choices the firm has made about how it intends to compete
  37. market segmentation
    a process used to cluster people with similar needs into individual & identifiable groups
  38. cost leadership strategy
    an integrated set of actions taken to produce goods or services w/ features that are acceptable to customers at the lowest cost, relative to that of competitors
  39. differentiation strategy
    an intergrated set of actions taken to produce goods or services at an acceptable cost that customers perceive as being different in ways that are important to them; targets broad customer segment or group; product innovation critical
  40. focused strategy
    an integrated set of actions taken to produce goods or services that serve the needs of a particular competitive segment (like buyers w/ specific needs or located in specific geographic regions)
  41. integrated cost leadership/differentiation strategy
    involves engaging in primary value chain activities & support functions that allow a firm to simultaneously pursue low cost & differentiation; objective= efficiently produce products w/ some differentiated features
Card Set
MGMT 485 Test 1
Chapt. 1-4