MGMT 4312 Midterm

____________ is the set of actions a company takes to outperform market competitors and achieve superior profitability

Strategy

A ____________ involves obtaining invaluable expertise and competitive capabilities that cannot be readily copied, matched, or bested over the long-term by rivals

Sustainable competitive advantage

A ____________consists of proactive strategy elements that are both planned and realized as planned

Deliberate Strategy

A ____________ consists of reactive strategy elements that pop up as changing conditions warrant

Emergent strategy

The three tests of a winning strategy are ____________, ____________, & ____________

Fit Test, Sustainable Competitive Advantage Test, & Performance Test

Stage ____________ in the strategy making/executing process is developing a vision, mission, and core values

One

Stage ____________ in the strategy making/executing process involves setting the strategy objectives

Two

Stage ____________of the strategy making/executing process involves crafting a strategy to achieve the objectives and the company vision

Three

Stage ____________ of the strategy making/executing process involves executing the strategy developed

Four

Stage ____________ of the strategy/executing process is monitoring developments, evaluating performance, and initiating corrective adjustments to the strategy

Five

A ____________ is the long-term direction and strategic intent of a company

Strategic vision

Developing a strategic vision involves these few steps:

Shows managements aspirations for the firm to the stakeholders

Provides direction

Sets out the compelling rationale for the firm’s decision

Use distinctive and specific language to set the firm apart from its rivals

A ____________ is a formal summary of the aims and values of a company, organization, or individual

Mission statement

An ideal mission statement ____________ (6)

Identifies the firms product or services

Specifies that the buyer NEEDS it, and seeks to satisfy the need

Identifies the customer groups/markets it is looking to serve

Specifies its approach to pleasing customers

Sets the firm apart from its rivals

Clarifies the firms business to its stakeholders

____________are beliefs, traits, and behavioral norms that employees are expected to display in conducting the firms business and in pursuing its strategic vision and missions

Core values

PESTEL - ____________ (6)

Political, Economic, Social, Technological, Environmental, Legal

A ____________ is a competitive asset owned or controlled by a firm

Resource

The two types of resources are ____________ and ____________

Tangible; Intangible

Tangible resources include ____________(4)

Physical

Financial

Technological

Organizational

Intangible resources include ____________

Human assets and intellectual capital

Brands, company image, reputational assets

Relationships

Company culture and incentive system

____________ is the limit to which a firm can perform its critical activity proficiently using related combinations of resources. 

Organizational Capacity

A ____________ is a linked and closely integrated set of competitive assets centered around one or more cross-functional capabilities

Resource bundle

A ____________ is a sustainable competitive advantage test that asks if a resource or capability (bundle of resources) is valuable, rare, inimitable, and non-substitutable

VRIN test

The four tests of a resource’s competitive power (VRIN) are:

Valuable

Rare

Inimitable (hard to copy)

Non-substitutable 

A ____________deals exclusively with the specifics of its efforts to position itself in the marketplace, please customers, ward off competitive threats, and achieve a particular kind of competitive advantage

Competitive strategy

The five generic competitive strategies include (5)

Low-cost provider

Broad differentiation

Focused low-cost

Focused differentiation

Best-cost provider

A ____________ attempts to achieve lower overall costs than its rivals on products attracting a wide margin of buyers

Low-cost provider

____________ involves distinguishing the firms product offering from rivals with attributes that appeal to a wide spectrum of buyers

Broad differentiation

A ____________ concentrates on a narrow buyer segment by meeting specific tastes and requirements of niche members

Focused differentiation

A ____________ concentrates on a narrow price-sensitive buyer segment and on costs to offer a lower-priced product

Focused low-cost provider

A ____________ gives customers more value for the money they spend by offering upscale product attributes at a lower cost than its rivals

Best-cost provider

The advantages of a first-mover are ____________

Pioneering helps build a firm’s reputation and strong brand loyalty

Their customers will face significant costs if they were to switch

Property rights protections thwart rapid imitation from the firm’s initial move

Early leads enable movement down the learning curve ahead of its rivals

You can set the technical standard for the industry

The advantages of a late-mover are ____________

When pioneering is more costly than imitating and offers negligible experience or learning curve benefits

When the product of an innovator are primitive and do not live up to the buyers hype

When rapid market evolution lets fast movers to pull ahead of the firm movers products with more attractive next-version products

When market uncertainties make it difficult to ascertain what will eventually succeed

When customer loyalty is low and first movers skills, experience, and actions are easily copied or surpassed

A ____________ is a formal agreement between two or more separate companies in which they agree to work cooperatively toward some common objective

Strategic alliance