Refined 008 - strategic management Flashcards
(20 cards)
What is competitive advantage?
The ability of an organisation to outperform competitors using unique resources and capabilities.
Example: Apple’s brand loyalty and design innovation.
What are core competencies?
Things an organisation does uniquely well that are critical to competitive advantage.
Example: Netflix’s data-driven content personalisation.
Give examples of competitive advantage.
Exclusive resources, trusted brand, skilled employees.
Example: Rio Tinto’s government-backed mining rights.
What is a SWOT analysis?
Framework to assess internal (Strengths, Weaknesses) and external (Opportunities, Threats) factors.
Example: Strength – loyal customer base; Threat – new competitors entering the market.
What is the VRIO framework?
Evaluates resources based on Value, Rarity, Imitability, and Organisation.
Example: Tesla’s battery tech – Valuable, Rare, Hard to Imitate, and Organised.
What are Porter’s 5 Forces?
Competitive Rivalry, Threat of New Entrants, Threat of Substitutes, Bargaining Power of Buyers, Suppliers.
Example: Substitutes – streaming services vs cinema.
What is Corporate-Level Strategy?
Strategy guiding overall organisation direction and scope.
Example: Alphabet diversifying into health and AI alongside Google.
What is Business-Level Strategy?
How to compete in a specific market or industry.
Example: Zara’s fast fashion strategy.
What is Functional-Level Strategy?
How departments support business strategy through daily operations.
Example: HR improving talent retention to support innovation goals.
What is Cost Leadership strategy?
Being the cheapest provider in the market.
Example: Aldi using private labels and efficient logistics.
What is Differentiation strategy?
Offering unique products customers will pay more for.
Example: Dyson’s premium, high-tech vacuum cleaners.
What is Focused Cost Leadership?
Low-cost strategy targeting a narrow niche.
Example: Bunnings offering cheap prices for DIY consumers.
What is Focused Differentiation?
High-value, unique products for a specific market segment.
Example: Lululemon’s premium athletic wear for yoga enthusiasts.
What is the BCG Matrix used for?
To assess which products or units to invest in or divest from.
Example: Stars – growing smartphone line; Dogs – outdated tech.
Name the 4 BCG Matrix categories.
Stars, Cash Cows, Question Marks, Dogs.
Example: Cash Cow – Microsoft Office.
What are Growth Strategies?
Strategies aimed at expanding business operations.
Example: Amazon entering pharmacy or grocery sectors.
What is a Retrenchment Strategy?
Cutting back through divestment, restructuring, or closure.
Example: eBay selling off non-core businesses.
What are Cooperative Strategies?
Firms working together to achieve shared goals.
Example: Qantas and Emirates alliance for international reach.
What is strategy implementation?
Executing plans using structures, leadership, HR, and controls.
Example: Tesla expanding production through strategic hiring and automation.
What are the 4 key elements of implementation?
Structure, Leadership & Culture, HR, Control Systems.
Example: Google uses decentralised teams and agile control systems.
