MGMT 485W: Chapter 1

Question 1

The Strategic Management Process Graph

Answer 1

1. Establishment of mission, vision, and goals
2. Analysis of internal strengths and weaknesses/analysis of external opportunities and threats
   - SWOT analysis and Strategy formulation
   - Strategy implantation
   - Strategic Control

Question 2

Strategic competitiveness

Answer 2

achieved when a firm successfully formulates and implements a value-creating strategy

Question 3

Strategy

Answer 3

an integrated and coordinated set of commitments and actions designed to exploit core competencies and again a competitive advantage

Question 4

Competitive advantage

Answer 4

when a company implements a strategy that creates superior value for customers and that its competitors are unable to duplicate or find too costly imitate

Question 5

Competitive advantage teacher definition

Answer 5

earned economic returns superior to competitors

Question 6

Above-average returns

Answer 6

returns in excess of what an investor expects to earn from other investments with a similar amount of risk

Question 7

Risks of above-average returns

Answer 7

• range of possible economic results

- volatility

Question 8

Strategic management process definition

Answer 8

the full set of commitments, decisions, and actions required for a firm to achieve strategic competitiveness and earn above-average returns

Question 9

Steps in Strategic Management Process ABBREV

Answer 9

ADT

Question 10

Steps in Strategic Management Process

Answer 10

1. Analyze its external environment and internal organization
2. Develops its mission and vision
3. Take Actions and Implement

Question 11

Hyper competition definition

Answer 11

used to capture the realities of the competitive landscape

Question 12

Hyper competition ABBREV

Answer 12

ACF

Question 13

Hyper Competition

Answer 13

• Assumptions of market stability are replaced by notions of instability and change
• Condition of rapidly escalating competition based on price-quality positioning competition to create new know-how and establish first-mover advantage and competition to protect or invade established product or geographic markets
• firms often aggressively challenge their competitors in the hopes of improving their competitive position and ultimately their performance

Question 14

Global economy

Answer 14

one in which goods, services, people, skills, ideas move freely across geographic borders

Question 15

Strategic Management Environment

Answer 15

Globalization

Technology

Question 16

Globalization

Answer 16

the increasing economic interdependence among countries and their organizations as reflected in the flow of goods and services, financial capital, and knowledge across country borders

Question 17

risk of globalization

Answer 17

amount of time required for firms to learn how to compete in markets that are new to them

Question 18

Technology ABBREV

Answer 18

IKD

Question 19

Technology

Answer 19

Information
Knowledge Intensity
Disruptive Innovation

Question 20

Information

Answer 20

Personal computers, cellular phones, artificial intelligence, virtual reality, massive databases, and multiple social networking sites are a few examples of how information is used differently as a result of technological developments

Question 21

How information can be used as a competitive advantage

Answer 21

the ability to effectively and efficiently access and use information

Question 22

Knowledge intensity

Answer 22

knowledge is gained through experience, observation, interference and is an intangible resource

Question 23

How to gain competitive advantage with Knowledge Intensity

Answer 23

Firms must develop and acquire knowledge, integrate it into the organization to create capabilities, and then apply it to gain a competitive advantage

Question 24

Disruptive technology definition

Answer 24

technologies that destroy the value of an existing technology and create new markets

Question 25

Disruptive technology ex.

Answer 25

Ipad, 'Wi-Fi

Question 26

Industrial Organization Model ABBREV

Answer 26

RCCASS

Question 27

Industrial Organization Model

Answer 27

- Resources - Capability - Competitive Advantage - An Attractive Industry - Strategy Formulation and Implementation - Superior Returns

Question 28

Resources

Answer 28

inputs into a firm's production process | 1. Identify the firm's resources

Question 29

Capability

Answer 29

capacity of an integrated set of resources to integratively perform a task or activity. 2. Determine the firm's capabilities

Question 30

Competitive Advantage

Answer 30

ability of a firm to outperform its rivals | 3. Determine the potential of the firm's resources and capabilities in terms of competitive advantage

Question 31

An attractive industry

Answer 31

an industry with opportunities that can be exploited by the firm's resources and capabilities 4. Locate an attractive industry

Question 32

Strategy Formulation and Implementation

Answer 32

strategic actions taken to earn above-average returns 5. Select a strategy that best allows the firm to utilize its resources and capabilities relative to opportunities in the external environment

Question 33

Superior Returns

Answer 33

earning above-average returns

Question 34

Core Competencies ABBREV

Answer 34

RCCC

Question 35

Core Competencies

Answer 35

Resources Capability Core competence Capability

Question 36

What is the source of Capability?

Answer 36

Resources

Question 37

Resources

Answer 37

input to a firm's production process

Question 38

Capability

Answer 38

integration of a team resources

Question 39

If capability satisfy the criteria of sustainable actions, it is

Answer 39

a core competence

Question 40

If capability does not satisfy the criteria of sustainable actions, it is

Answer 40

Capability

Question 41

America Latina Logistica Rules ABBREV

Answer 41

IRMPR

Question 42

America Latina Logistica Rules

Answer 42

- Illustrates how simple rules can help companies shape strategy in an uncertain environment - Removes revenue growth obstacles - Minimize initial expenditure - Provide immediate benefit - Reuse existing resource

Question 43

Vision

Answer 43

a picture of what the firm wants to be and what it want to ultimately achieve

Question 44

Mission

Answer 44

specifies the business or business in which the firm intends to complete the customers it intends to serve

Question 45

Stakeholders

Answer 45

the individuals, groups, and organizations who can affect the firm's vision and mission, are affected by the strategic outcomes achieved and have enforceable claims on the firm's performance

Question 46

Classifications of stakeholders ABBREV

Answer 46

CPO

Question 47

Classifications of stakeholders

Answer 47

- Capital market Stakeholders - Product market stakeholders - Organizational stakeholders

Question 48

Capital Market Stakeholders

Answer 48

shareholders and the major suppliers of a firm's capital

Question 49

Product Market Stakeholders

Answer 49

firms primary customers, suppliers, host, communities, and unions

Question 50

Organizational stakehodlers

Answer 50

firm's employee, including both managerial and managerial personnel

Question 51

Strategic leaders

Answer 51

people located in different areas and levels of the firm using strategic management process to select strategic actions that help the firm achieve its visual and fulfill its mission

Question 52

Organizational culture

Answer 52

refers to the complex of ideologies, symbols, and core values that are shared throughout the firm and that influence how the firm conducts business

Question 53

strategic action

Answer 53

a market-based move that involves a significant commitment of organizational resources and is difficult to implement and reverse