What is strategy? - ✔✔An integrated set of goal-directed actions a firm takes to gain and sustain
competitive advantage.
What are the 2 business
... [Show More] analysis? - ✔✔Internal and External.
What are the 3 business strategies? - ✔✔1) Cost, 2) Differentiation, 3) Innovation.
What is competitive advantage? - ✔✔Superior performance relative to other competitors in the same
industry or the industry average.
How do you assess competitive advantage? - ✔✔Compare firm performance to a benchmark.
What is sustainable competitive advantage? - ✔✔Outperforming competitors or the industry average
over a prolonged period of time.
What is competitive disadvantage? - ✔✔Underperformance relative to other competitors in the same
industry or the industry average.
What is competitive parity? - ✔✔A performance of two or more firms at the same level.
What is the key to successful strategy and gain competitive advantages? - ✔✔Combine activities for a
unique position in an industry.
Where does competitive advantage come from? - ✔✔1) Performing different activities, or 2) Performing
the same activities differently than rivals.What does strategic positioning require? - ✔✔Trade-offs.
What is the fist step of a strategic goal to gain and sustain competitive advantage? - ✔✔Define a firm's
vision, mission, and values.
What is a firm's vision? - ✔✔What do we want to accomplish?
What is a firm's mission? - ✔✔How do we accomplish our goals?
What is a firm's values? - ✔✔What commitments do we make? What guardrails do we put in place? How
can we act legally and ethically in pursuit of the vision and mission?
What are the key aspects of an effective vision? - ✔✔1) Capture an organization's aspiration . 2)
Identifies what it ultimately wants to accomplish. 3) Motivates employees to aim for a target. 4) Leaves
room for contributions.
What is a product-oriented vision statement? - ✔✔Defines a business in terms of a good or service
provided.
What is a customer-oriented vision statement? - ✔✔Defines a business in terms of providing solutions to
customer needs.
What things can a firm do to vision statements and firm performance to be positively associated? - ✔✔1)
The vision is customer-oriented, 2) Internal stakeholders help define the vision, 3) Organizational
structures align with the vision statement.
What does a firm's mission statement do? - ✔✔1) Describes how to accomplish goals and 2) Describes
what the organization does (the products and services it provides and the markets in which it competes).
What is the difference between vision and mission statements? - ✔✔Vision statements: WHAT an
organization wants to accomplish (ie: to). Mission statements: HOW the vision will be accomplished (ie:
by).What does establishing a firm's value do? - ✔✔Guides an organization to achieve its vision and fulfill its
mission.
Who are the stakeholders? - ✔✔Organizations, groups, individuals that can affect or are affected by a
firm's actions and have a vested claim or interest in the performance and continued survival of the firm.
What is a firm's stakeholder strategy? - ✔✔1) Managing stakeholders in order to gain and sustain
competitive advantage, 2) Benefits of effective stakeholder strategy to firm performance.
What are the layers of the corporate social responsibility pyramid (from the top-down)? - ✔✔1)
Philanthropic responsibilities, 2) Ethical responsibilities, 3) Legal responsibilities, 4) Economic
Responsibilities.
What is strategic leadership? - ✔✔1) Successful use of power and influence, 2) Directing the activities of
others, 3) Pursuing an organization's goals, 4) Enabling organizational competitive advantage, 5) Upper
Echelon's Theory (organizational outcomes reflect the values and attributes of the top management
team).
What is the AFI Framework for Top-Down strategic planning? - ✔✔Analysis, Formulation,
Implementation
What are the 3 types of strategies? - ✔✔1) Intended strategy, 2) Emergent strategy, 3) Realized strategy.
What is intended strategy? - ✔✔The outcome of a rational and structured top-down strategic plan.
What is emergent strategy? - ✔✔Any unplanned strategic initiative, bubbles up from the bottom of the
organization, can influence and shape a firm's overall strategy. (ie: Starbucks manager creating the
frappuccino)
What is realized strategy? - ✔✔Combination of intended and emergent strategy.What are the 2 EXTERNAL business analysis models? - ✔✔1) The PESTEL Framework, 2) The 5 Forces
Model (Porter's).
Why do we want to use the PESTEL Framework in understanding the external environment? - ✔✔It helps
us identify the threats and opportunities that a firm faces in its industry.
What does PESTEL stand for? - ✔✔Political factors, Economic factors, Sociocultural factors, Technological
factors, Ecological factors, Legal factors.
What are the Political factors? - ✔✔Processes and actions of government bodies (lobbying, public
relations, contributions, litigations).
What are the Economic factors? - ✔✔Macro economic climates (growth rates, employment, interest
rates, price stability, currency exchange rate).
What are the Sociocultural factors? [Show Less]