008 - strategic management Flashcards
(20 cards)
What is competitive advantage?
Competitive advantage is when organisations develop or acquire unique resources and capabilities that allow them to perform better than competitors.
Core competencies are the most valuable resources and capabilities that an organisation does uniquely well.
What are core competencies?
Core competencies are the things an organisation does uniquely well.
These are critical for achieving competitive advantage.
List three examples of competitive advantage.
- Exclusive natural resources
- Trusted brand reputation
- Skilled employees
What does SWOT stand for?
SWOT stands for Strengths, Weaknesses, Opportunities, and Threats.
It helps managers understand an organisation’s internal and external environment.
What is the purpose of the VRIO framework?
The VRIO framework helps managers determine if a resource or capability can provide a competitive advantage by focusing on four key questions: Valuable, Rare, Imitable, and Organised.
What are the five forces in Porter’s 5 Forces framework?
- Competitive Rivalry
- Threat of New Entrants
- Threat of Substitutes
- Bargaining Power of Buyers
- Bargaining Power of Suppliers
What is Corporate-Level Strategy?
Corporate-Level Strategy addresses the big-picture question, ‘What business are we in?’ and looks at the whole organisation.
It encompasses all business areas.
What is the focus of Business-Level Strategy?
Business-Level Strategy focuses on how to compete in a specific industry or market.
What is Functional-Level Strategy?
Functional-Level Strategy involves day-to-day operations and how departments help carry out the business-level strategy.
Define Cost Leadership strategy.
Cost Leadership strategy aims to be the cheapest in the market.
Define Differentiation strategy.
Differentiation strategy aims to be unique, offering products or services that customers are willing to pay more for.
What is Focused Cost Leadership?
Focused Cost Leadership aims to be cheap in a niche market.
What is Focused Differentiation?
Focused Differentiation aims to be unique in a niche market.
What does the BCG Matrix help managers determine?
The BCG Matrix helps managers decide which products or business units to invest in or pull back from.
What are the four categories of the BCG Matrix?
- Stars
- Cash Cows
- Question Marks
- Dogs
What is the aim of Growth Strategies?
Growth Strategies aim to expand the business.
What does Retrenchment Strategy involve?
Retrenchment Strategy involves divestment, restructuring, or liquidation of parts of the business.
What are Cooperative Strategies?
Cooperative Strategies involve organisations collaborating instead of competing to achieve shared goals.
What is the process of implementing strategy?
Implementing strategy means turning plans into action using various management tools.
What are key elements of implementing strategy?
- Structure
- Leadership and Culture
- Human Resources
- Control Systems
