Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
63 Cards in this Set
- Front
- Back
AFI Framework
|
analyze, formulate, implement helps a manager form a strategy to gain competitive advantage |
|
Black Swan Events
|
events that are highly improbable but cause high impact
|
|
Firm effects
|
firm performance attributed to actions managers take
|
|
industry effects
|
firm performance attributed to the structure of the industry in which the firm competes
|
|
Autonomous Actions
|
strategic initiatives undertaken by lower level employees on their own often in response to an unexpected situation
|
|
emergent strategy
|
an unplanned strategic initiative bubbling up from the bottom of the organization
|
|
intended strategy
|
the outcome of a rational and structured top-down strategic plan
|
|
mission
|
description of what the organization actually does , the products and services it plans to provide, and the markets in which it will compete
|
|
values
|
ethical standards and norms that govern the behavior of individuals in the organization
|
|
planned emergence
|
strategy process that allows bottom up strategic initiatives to emerge and to be evaluated by top management
|
|
realized strategy
|
combo of emerged and intended
|
|
resource allocation process ( RAP)
|
the way a firm allocates its resources based on predetermined policies which can be critical in shaping its realized strategy
|
|
scenario planning
|
strategy planning activity in which top management envisions lots of what if scenarios
|
|
serendipity
|
pleasant surprises that have profound affect on the businesses strategic initiatives
|
|
strategic business unit (SBU)
|
a standalone division of a larger conglomerate with its own profit and loss responsibility
|
|
strategic commitments
|
large costly commitments the firms makes to achieve its mission. Long-term and difficult to reverse.
|
|
strategy formulation
|
where and how to compete
|
|
strategy implementation
|
part of the process that deals with the organization, coordination, and integration of how a strategy gets done
|
|
top down strategic planning
|
a rational, data driven strategy process through which top management attempts to program future success
|
|
upper-echelons theory
|
views organizational outcomes as reflections of top management values
|
|
vision
|
what an organization ultimately wants to accomplish, captures the company's aspirations
|
|
co-opetition
|
cooperation by competitors to achieve a strategic objective
|
|
network effects
|
positive effect (externally) that one user of a product or service has on the value of that product for other users
|
|
Pestel Model
|
categorizes and analyzes an important set of external factors (political, economic, sociocultural, technological, ecological, and legal) that might impinge upon the firm. these can create both opportunities and threats |
|
industry convergence
|
a process where formerly unrelated industries begin to satisfy the same customer need |
|
strategic group |
set of companies that pursue a similar strategy within a specific industry |
|
strategic position |
a firms strategic profile based on the difference between value creation and cost ( V-C) |
|
Activities
|
distinct and fine grained business processes that enable a firm to add incremental value by transforming inputs into goods and services |
|
capabilities |
organizational and managerial skills necessary to orchestrate a diverse set of resources and deploy them strategically
|
|
casual ambiguity |
a situation in which case the cause and effect of a phenomenon are not readily apparent |
|
core competencies |
unique strengths, embedded deep within the firm that are critical to gaining and sustaining competitive advantage |
|
core rigidity |
a former core competency that turned into a liability because the firm failed to hone, refine, and upgrade the competency as the environment changed |
|
isolating mechanisms |
barriers to imitation that prevent rivals from competing away the advantage a firm may enjoy |
|
path dependence |
a situation in which the options one faces in the current situation are limited by decisions made in the past |
|
primary activities |
firm activities that add value directly by transforming inputs into outputs as the firms a product or service horizontally along the internal value chain |
|
resource base view
|
a model that sees certain types of resources as key to superior firm performance |
|
resource flows |
firms level of investments to maintain or build a resource |
|
resource heterogeneity |
assumption the resource based view that a firm is a bundle of resources and capabilities that differ across firms |
|
resource immobility |
assumption in resource based view that a firm have resources that tend to be "sticky" and that do not move easily from firm to firm |
|
resource stocks |
firms current level of intangible resources |
|
social complexity |
a situation in which different social and business systems interact with one another |
|
support activities |
firm activities that add value indirectly but are necessary to sustain primary activities |
|
value chain |
internal activities a firm engages in when transforming inputs into outputs each activity adds incremental value |
|
VIRO Framework |
valuable, rare, costly to imitate, organized to capture value ( how to gain competitive advantage) |
|
blue ocean strategy
|
business level strategy that successfully combines differentiation and cost leadership activities using value innovation to reconcile the inherent trade offs
|
|
business level strategy
|
goal directed actions managers take in their quest for competitive advantage
|
|
cost leadership strategy
|
generic business strategy that seeks to create the same or similar value for customers at a lower cost
|
|
differentiation strategy
|
seeks to create higher value for customers than the value that competitors make
|
|
diseconomies of scale
|
increases in cost per unit when output increases
|
|
economies of scope
|
savings that come from producing two or more outputs at less cost than producing each output individually despite using the same resources and technology
|
|
minimum efficient scale MES
|
output range needed to bring down the cost per unit as much as possible allowing a firm to stake out the lowest cost position that Is achievable through economies of scale
|
|
scope of competition
|
the size narrow or broad of the market the firm chooses to compete in
|
|
strategic trade offs
|
choices between cost or value position
|
|
value curve
|
horiszontal connection of the points of each value on the strategy canvas
|
|
when does the value curve show that's in ineffective ?
|
when it zigzags
|
|
what is a drawback of porters five forces
|
Managers cannot determine the changing speed of an industry or the rate of innovation
|
|
porters five forces
|
threat of new entrants, threat of substitutes, bargaining power of buyers, bargaining power of suppliers, intensity of competitive rivalry.
|
|
balanced score card deals with
|
customer satisfaction, financial performance, internal business process efficiency , knowledge and innovation
|
|
core competencies should:
|
provide potential access to wide variety of markets, makes significant contribution the customers perceived value, difficult for competitors to imitate.
|
|
stake holder impact analysis
|
who are the stakeholders, what are our stakeholders interests and claims, what opportunities and threats d they create, what responsibilities do we have, what should we do to address their concerns
|
|
resource based view critical assumptions
|
1) resource heterogeneity 2) resource immobility
|
|
barriers to imitation (isolating mechanisms)
|
casual ambiguity, path dependence, social complexity, intellectual property , better excepectations of future resource value
|
|
dynamic capabilities
|
create , deploy, modify reconfigure or upgrade its resource base
|