Term
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Definition
| competitive moves and business approaches that managers are employing to grow the business, attract and please customers, compete successfully, conduct operations, and achieve the targeted levels of organizational performance |
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Term
| Best-performing strategies have some kind of distinctive |
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Definition
| AH HA element that results in customer-appealing product attributes and produces a competitive edge |
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Term
| sustainable competitive advantage |
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Definition
| achieved when an attractive number of buyers are drawn to purchase a company's product or service rather than those of competitors and when the basis for such purchases is durable, despite the efforts of competitors to overcome or otherwise erode the appeal of tis product offering |
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Term
| 4 Frequent and Dependable Strategic Approaches to setting a firm apart |
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Definition
| 1)striving to be the industry's low-cost provider, thereby aiming for a cost-based competitive advantage over rivals; 2)outcompeting rivals based on such differentiating features as higher quality, wider product selection, added performance, value-added services, more attractive styling, technological superiority, or unusually good value for the money; 3)focusing on a narrow market niche and winning a competitive edge by doing a better job than rivals of serving the special needs and tastes of buyers comprising the niche; 4)developing expertise and resource strengths that give the company competitive capabilities that rivals cant easily imitate or trump with capabilities of their own |
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Term
| What always ranks center stage when crafting a strategy? |
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Definition
| the quest for sustainable competitive advantage because of the tight connection between competitive advantage and profitability |
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Term
| what is always a work in progress? |
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Definition
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Term
| 2 things that blend to make a typical company strategy |
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Definition
| 1)proactive actions to improve the company's financial performance and secure a competitive edge; 2)as-needed reactions to unanticipated developments and fresh market conditions |
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Term
| 2 makers of an ethical strategy |
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Definition
| 1)it does not entail actions and behaviors that cross the line from "should do" to "should not do"; 2)it allows management to fulfill its ethical duties in a manner that takes into account the legitimate interests of all stakeholders |
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Term
| 2 crucial elements of a company's business model |
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Definition
| 1)customer value proposition; 2)profit proposition |
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Term
| customer value proposition |
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Definition
| the buyer wants and needs it seeks to satisfy and whether customers will consider the price charged to be a "good value" |
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Term
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Definition
| "formula" for generating profits in the course of pursuing its customer value proposition (the strategy, key resources, and business processes it will utilize to generate the sales volumes, revenues, costs, and profit margins needed to yield good profits) |
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Term
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Definition
| sets forth how its strategy and operating approaches will create value for customers while at the same time generating ample revenues to cover costs and realize a profit |
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Term
| 3 ways a winning strategy must fit into an enterprise |
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Definition
| external and internal situation, build sustainable competitive advantage, and improve a company's performance |
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Term
| 2 kinds of performance improvements that tell the most about the caliber of a company's strategy |
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Definition
| 1)gains in profitability and financial strength; 2)gains in the company's competitive strength and market standing |
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Term
| best test of managerial excellence: |
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Definition
| excellent execution of an excellent strategy |
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Term
| 5 steps to create and execute a strategy |
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Definition
| 1)developing a strategic vision; 2)setting objectives; 3)crafting a strategy to achieve the objectives; 4)implementing and executing the chosen strategy efficiently and effectively; 5)monitoring developments, evaluating performance, and initiating corrective adjustments |
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Term
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Definition
| the route a company intends to take in developing and strengthening its business; it lays out the company's strategic course in preparing for the future |
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Term
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Definition
| should clearly convey a company's long-term direction, rather than hide it in foggy language |
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Term
| Do's for a vision statement |
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Definition
| be graphic, forward-looking and directional, keep it focused, have wiggle room, be sure the journey is feasible, indicate why the directional path makes good business sense |
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Term
| Don'ts for a vision statement |
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Definition
| don't be vague or incomplete, dwell on the present, use overly broad language, state the vision in bland or uninspiring terms, be generic, rely on superlatives |
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Term
| the defining characteristic of a well-conceived strategic vision is... |
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Definition
| what it says about the company's future strategic course |
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Term
| distinction between a strategic vision and a mission statement |
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Definition
| strategic vision protrays a company's FUTURE business scope; mission statement typically describes its present business and purpose |
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Term
| what is more correctly an objective and a result of what a company does? |
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Definition
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Term
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Definition
| an action managers take to achieve one or more of an organization's goals; entail difficult to reverse commitments of resources |
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Term
| strategic management process |
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Definition
| the process by which managers choose a set of strategies that will allow a company to achieve superior performance |
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Term
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Definition
| whole focus of a strategy; a firm's profitability for all firms in its industry |
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Term
| sustained competitive advantage |
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Definition
| a firm maintains competitive advantage for a number of years |
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Term
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Definition
| management's model of how strategy will allow the company to gain competitive advantage and achieve superior profitability |
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Term
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Definition
| corporate, business, functional; as well as institutional |
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Term
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Definition
| strategies an organization plans to put into action |
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Definition
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Definition
| the product of whatever intended strategies are actually put into action and of any emergent strategies |
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Definition
| group of executives with same background |
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Term
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Definition
| attaining, then using the lowest total cost basis as a competitive advantage |
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Term
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Definition
| using product features or services to distinguish the firm's offerings from its competitors |
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Term
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Definition
| concentrating competitively on a specific market segment |
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Term
| examples of corporate-level strategies |
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Definition
| vertical integration, diversification, strategic alliances, acquisitions, new ventures, business portolio restructuring |
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Term
| examples of business-level strategies |
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Definition
| cost leadership, differentiation, market niche (focus) |
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Term
| functional level strategies |
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Definition
| focus is on improving the effectiveness and efficiency of operations within a company |
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Term
| examples of functional level strategies |
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Definition
| manufacturing, marketing, materials management, research and development, human resources, IT |
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