The Fundamentals Flashcards
What is a Competitive Advantage?
Any strategy that allows a Firm to generate superior profits in the short-run and long-run relative to Rivals.
Hill et. al, Strategic Management Theory — P. 6.
What is a Business Model?
The framework describing how the Firm’s various strategies function to achieve competitive advantage.
Hill et. al, Strategic Management Theory — P. 6.
What are the Three Types of Managers?
- General Mangers: Strategic overseers of the total corporate structure.
- Divisional Managers: Strategic overseers of self-contained divisions within the corporate structure.
- Functional Managers: Tactical overseers of particular functions within a division.
Hill et. al, Strategic Management Theory — P. 9-11.
What are the Characteristics of a Well-Formulated Strategic Objective?
- It address a critical issue(s).
- It is precise and measurable.
- It is challenging but realistic.
- It comes with a concrete deadline.
Hill et. al, Strategic Management Theory — P. 16.
What are the Limits of High-Level (Corporate) Strategic Planning?
- The role of chance.
- The unpredictability of the real world.
Hill et. al, Strategic Management Theory — P. 20.
This is to say that planning is fallible, not that it is pointless.
What are the Limits of High-Level (Corporate) Strategic Planning?
- The stifling of serendipity and autonomous action at lower levels.
- The diminishment of divisional and functional management experience in strategy.
- The sizeable distance between corporate management and present operating realities.
Hill et. al, Strategic Management Theory — P. 27.
What is a Realised Strategy?
The product of:
* Whichever elements of a Firm’s deliberate strategy are actually executed; and
* Any incidental pivots made along the way.
Hill et. al, Strategic Management Theory — P. 22.
The point of this concept is to show that strong strategies can emerge without prior planning and in response to unforeseen circumstances.
