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BADM 482
Strategic Flexibility
set of capabilities firms use to respond to various demands and opportunities existing in today’s dynamic and uncertain competitive environment.
strategy
integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage.
strategic management process
is the full set of commitments, decisions, and actions firms take to achieve strategic competitiveness and earn above-average returns.
Average Returns
are returns equal to those an investor expects to earn from other investments possessing a similar amount of risk.
capability
capacity for a set of resources to perform a task or an activity in an integrative manner.
above average returns
returns in excess of what an investor expects to earn from other investments with a similar amount of risk.
mission
specifies the businesses in which the firm intends to compete and the customers it intends to serve.
strategic competitiveness
formulating and implementing a value creating strategy.
organizational culture
refers to the complex set of ideologies, symbols, and core value that individuals throughout the firm share and that influence how the firm conducts business.
strategic leaders
people located in different areas and levels of the firm using the strategic management process to select actions that help the firm achieve its vision and fulfill its mission.
resources
inputs into a firm’s production process, such as capital equipment, the skills of individual employees, patents, finances, and talented managers.
stakeholders
are individuals, groups, and organizations that can affect the firm’s vision and mission, are affected by the strategic outcomes achieved, and have enforceable claims on the firm’s performance.
risk
are individuals, groups, and organizations that can affect the firm’s vision and mission, are affected by the strategic outcomes achieved, and have enforceable claims on the firm’s performance.
competitive advantage
implementing a chosen strategy, it creates superior value for customers and when competitors are not able to imitate the value the firm’s products create or find it too expensive to attempt imitation.
global economy
one in which goods, services, people, skills, and ideas move freely across geographic borders.
hypercompetiton
condition where competitors engage in intense rivalry, markets change quickly and often, and entry barriers are low.
vision
is a picture of what the firm wants to be and, in broad terms, what it wants to achieve.
core competencies
capabilities that serve as a source of competitive advantage for a firm over its rivals.
competitor analysis
How companies gather and interpret information about their competitors
general enviroment
composed of dimensions in the broader society that influence an industry and the firms within it.
opportunity
a condition in the general environment that, if exploited effectively, helps a company reach strategic competitiveness.
industry environment
the set of factors that directly influences a firm and its competitive actions and responses: the threat of new entrants, the power of suppliers, the power of buyers, the threat of product substitutes, and the intensity of rivalry among competing firms.
demographic segment
concerned with a population’s size, age structure, geographic distribution, ethnic mix, and income distribution.
threat
a condition in the general environment that may hinder a company’s efforts to achieve strategic competitiveness.
political/ legal segment
the arena in which organizations and interest groups compete for attention, resources, and a voice in overseeing the body of laws and regulations guiding interactions among nations as well as between firms and various local governmental agencies.
technological segment
the arena in which organizations and interest groups compete for attention, resources, and a voice in overseeing the body of laws and regulations guiding interactions among nations as well as between firms and various local governmental agencies.
sociocultural segment
concerned with a society’s attitudes and cultural values.
economic enviroment
refers to the nature and direction of the economy in which a firm competes or may compete.
global segment
includes relevant new global markets and their critical cultural and institutional characteristics, existing markets that are changing, and important international political events.
industry
a group of firms producing products that are close substitutes.
sustainable physical environment segment
refers to potential and actual changes in the physical environment and business practices that are intended to positively respond to those changes in order to create a sustainable environment.
strategic group
A set of firms emphasizing similar strategic dimensions and using a similar strategy
competitor intelligence
the set of data and information the firm gathers to better understand and anticipate competitors’ objectives, strategies, assumptions, and capabilities.
complementors
companies or networks of companies that sell complementary goods or services that are compatible with the focal firm’s good or service.
Value
is measured by a product’s performance characteristics and by its attributes for which customers are willing to pay.
global mind-set
is the ability to analyze, understand, and manage an internal organization in ways that are not dependent on the assumptions of a single country, culture, or context.
Intangible resources
are assets that are rooted deeply in the firm’s history, accumulate over time, and are relatively difficult for competitors to analyze and imitate
tangible resources
are assets that can be observed and quantified.
valuable capabilities
allow the firm to exploit opportunities or neutralize threats in its external environment.
rare capabilities
are capabilities that few, if any, competitors possess.
value chain activities
are activities or tasks the firm completes in order to produce products and then sell, distribute, and service those products in ways that create value for customers.
Non substitutable capabilities
are capabilities that do not have strategic equivalents.
support functions
include the activities or tasks the firm completes in order to support the work being done to produce, sell, distribute, and service the products the firm is producing.
Costly-to-imitate capabilities
are capabilities that other firms cannot easily develop
outsourcing
is the purchase of a value-creating activity or a support function activity from an external supplier.
