MGT 4090 Management Policy & Strategy Week 1: What is Strategy?

These flashcards cover key concepts from the lecture on strategy in management, including definitions of competitive advantage, sustainable competitive advantage, value creation, and strategic positioning.

Strategy

Goal-directed and integrated actions to gain and sustain superior performance relative to competitors.

Competitive Advantage

Superior performance relative to other competitors in the same industry or the industry average.

Sustainable Competitive Advantage

The ability to outperform competitors or the industry average over a prolonged period.

Value Creation

Providing goods or services that consumers value more highly than competitors' offerings.

Strategic Positioning

A unique position within an industry that allows a firm to provide value to customers while controlling costs.

Competitive Disadvantage

A firm that underperforms relative to its rivals or the industry average.

Elements of a Good Strategy

1. Diagnosis of the competitive challenge 2. Guiding policy to address the challenge 3. Coherent actions to implement the policy.

Trade-Offs in Strategy

The conscious decisions managers must make about how to allocate resources and which activities to pursue.

Diagnosis of Competitive Challenge

Analysis of the firm’s internal and external environments.

Guiding Policy

A formulation that addresses the competitive challenge and results in corporate, business, and functional strategy.

Coherent Actions

Implementation actions that align with the guiding policy of the firm.

Economic Contribution

Value creation minus costs.

Goals of Strategic Management

To enable mastery over viewing a firm in its entirety and thinking like a general manager.

Engagement

Active participation in organizational meetings that contributes in a positive manner.

Managerial Insight

Understanding the crucial knowledge gaps that managers may have and their reliance on trial-and-error.

Urgent Assignments (tasks)

Tasks assigned for timely completion, important for grading and participation.