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89 Cards in this Set
- Front
- Back
Strategic Management |
A management field that combines analysis, formulation and implementation in order to gain competitive advantage. |
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Strategy |
A set of goal-directed actions to create and sustain a superior performance relative to competitors. |
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Competitive Advantage / Disadvantage / Parity |
Superior / Inferior / Same performance relatively to competitors in the industry or industry average. |
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Sustainable Competitive Advantage |
Competitive advantage sustained over a prolonged period of time. |
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CSR |
CORPORATE SOCIAL RESPONSIBILITY - FRAMEWORK - to recognize and address the economic, legal, ethical and philanthropic expectations that society has of the business at a certain time |
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Industry Effects |
Firm performance attributed to the structure of the firm's industry. |
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Firm Effects |
Firm performance attributed to the manager's actions. |
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Stakeholders |
Organizations and individuals that are affected or can affect the firm's actions. |
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Stakeholders Impact Analysis |
a decision tool to recognize, prioritize and address the needs of different stakeholders, so that the firm can gain c.a. + be a good corporate citizen. |
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Stakeholder Strategy |
manage a diverse set of stakeholders effectively in order to gain competitive advantage. |
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AFI Strategy Framework |
FRAMEWORK - links 3 managerial tasks: analyze, formulate, implement, that help to create a strategy and gain c.a. |
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Black Swan Events |
Highly improbable but high-impact events. |
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Autonomous Actions |
indipendent strategic initiatives undertaken by lower-level employees in response to unexpected situations. |
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Core Values Statement |
statement of principles to guide a firm, to achieve the vision and fulfill the mission. Both internal and external. Includes ethical implications. |
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Dominant Strategic Plan |
the strategic options that managers decide is the most plausible and that is then executed. |
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Emergent Strategy |
unplanned strategic initiatives. Bottom up. |
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Illusion of Control |
a tendency to overestimate their ability to control events. |
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Intended Strategy |
the outcome of a rational and structured top-down strategic plan. |
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Level 5 Leadership Pyramid |
FRAMEWORK - leadership progression with five sequential levels. |
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Mission |
What an organization actually does. Products + services it plans to provide and markets where it competes. Where is the firm positioned now. |
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Organizational Core Values |
Ethical standards that govern the behavior of individuals between a firm. |
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Planned Emergence |
strategy process - firms allow bottom-up strategic initiatives to emerge, be evaluated and coordinated by top management. |
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Realized Strategy |
intended + emergent strategy |
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RAP |
RESOURCE - ALLOCATION PROCESS - the way a firm allocates its resources based on predetermined policies. It can greatly influence realizing strategy. |
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Scenario Planning |
strategy planning activity top managements envisions different what-if scenarios to anticipate plausible futures to derive strategic responses. |
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Serendipity |
random events that are high-impact on a firm's strategic initiatives. |
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SBU |
STRATEGIC BUSINESS UNIT - a standalone division of a larger conglomerate. It's its own profit-and-loss responsibility. |
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Strategic Commitments |
actions to achieve the mission. Costly, long-term, difficult to reverse. |
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Strategy Formulation |
part of the strategic management - the choice of strategy in terms of where and how to compete. |
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Strategy Implementation |
part of the strategic management - organization, coordination and integration of how work gets done or how strategy is executed. |
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Strategic Initiative |
activity pursued by a firm to explore and develop new products and processes, new markets or new ventures. |
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Strategic Leadership |
Executives' use of power and influence to direct the activities of others when pursuing organizational goals. |
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Strategic Management Process |
method put in place by strategic leaders to formulate and implement a strategy that's gonna lead to sustainable c.a. |
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Top-down Strategic Planning |
a strategic process through which top management attempts to program future success. |
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Upper-echelons Theory |
FRAMEWORK - views organizational outcomes - strategic choices and performance levels - as reflections of the values of the members of the top management of the top management team. |
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Vision |
A statement about what a firm ultimately wants to accomplish. ASPIRATION. The firm in the future. |
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Competitive Industry Structure |
Elements and featurescommon to allindustries, includingthe number and size ofcompetitors, the firms’degree of pricing power,the type of product orservice offered, and theheight of entry barriers. |
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Complement |
A product, service, orcompetency that addsvalue to the originalproduct offering whenthe two are used intandem. |
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Complementor |
A company that providesa good or service thatleads customers to valueyour firm’s offeringmore when the two arecombined. |
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Co-opetition |
Cooperation bycompetitors to achievea strategic objective. |
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Entry Barriers |
Obstacles that determine how easily a firm can enter an industry. |
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Exit Barriers |
Obstacles that determinehow easily a firm canleave an industry. |
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Five Forces Model |
FRAMEWORK - identifies 5 forces that determine the profit potential of an industry and shape a firm's competitive strategy. |
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Industry |
A group of companies that face more or less the same suppliers and buyers. |
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Industry Analysis |
A method to identify an industry's profit potential and derive implications for a firm's strategic position. |
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Industry Convergence |
A process wherebyformerly unrelatedindustries begin tosatisfy the samecustomer need. The set of companiesthat pursue a similarstrategy within aspecific industr |
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Mobility Barriers |
Industry-specific factorsthat separate onestrategic group fromanother. |
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Network Effects |
The value of a product or service for an individual user increases with the number of total users. |
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PESTEL Model |
FRAMEWORK - analyze an important set of external factors that might impinge upon a firm, creating both opportunities and threats. |
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Strategic Group |
The set of companiesthat pursue a similarstrategy within aspecific industry. |
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Strategic Group Model |
FRAMEWORK - explains differences in firm performance within the same industry. |
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Strategic Position |
A firm's strategic profile based on the difference between value creation and cost. |
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Threat Of Entry |
The risk that potential competitors will enter an industry. |
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Activities |
Distinct and fine-grainedbusiness processes that enablefirms to add incremental valueby transforming inputs intogoods and services. |
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Capabilities |
Organizational and managerialskills necessary to orchestratea diverse set of resources anddeploy them strategically. |
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Casual Ambiguity |
A situation in whichthe cause and effect ofa phenomenon are notreadily apparent. |
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Core Competencies |
Unique strengths, embedded deepwithin a firm, that are critical togaining and sustaining competitiveadvantage. |
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Core Rigidity |
A former corecompetency that turnedinto a liability becausethe firm failed to hone,refine, and upgradethe competency as theenvironment changed. |
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Costly-to-imitate Resources |
One of the four key framework. A resourceis costly to imitate if firms that do notpossess the resourceare unable to developor buy the resourceat a comparable cost. |
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Dynamic Capabilities |
A firm’s ability tocreate, deploy, modify,reconfigure, upgrade, orleverage its resources inits quest for competitiveadvantage. |
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Dynamic Capabilities Perspective |
MODEL - that emphasizesa firm’s ability tomodify and leverage itsresource base in a waythat enables it to gainand sustain competitiveadvantage in a constantlychanging environment. |
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Intangible Resources |
Resources that do not have physicalattributes and thus are invisible. |
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Intellectual Property Protection |
A critical intangibleresource that canprovide a strongisolating mechanism,and thus help to sustaina competitive advantage |
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Isolating Mechanism |
Barriers to imitation that prevent rivals fromcompeting away theadvantage a firm mayenjoy. |
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Organized to Capture Value |
One of the four key framework. Thecharacteristic of havingin place an effectiveorganizational structure,processes, and systemsto fully exploit thecompetitive potential of the firm’s resources,capabilities, andcompetencies. |
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Path Dependence |
A situation in whichthe options one facesin the current situationare limited by decisionsmade in the past. |
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Primary Activities |
Firm activies that add value directly bytransforming inputsinto outputs as thefirm moves a productor service horizontallyalong the internalvalue chain. |
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Rare Resource |
One of the four key framework. A resource is rare if the number of firms that possess it is less than the number of firms it would require to reach a state of perfect competition. |
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Resource-Based View |
A model that sees certain types of resourcesas key to superior firm performance. |
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Resource Flows |
The firm’s level ofinvestments to maintainor build a resource. |
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Resource Heterogeneity |
Assumption in theresource-based viewthat a firm is a bundleof resources andcapabilities that differacross firms. |
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Resource Immobility |
Assumption in theresource-basedview that a firm hasresources that tend to not move easily fromfirm to firm. |
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Resource Stocks |
The firm’s current levelof intangible resources. |
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Resources |
Any assets that a firm candraw on when formulating andimplementing a strategy. |
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Social Complexity |
A situation in whichdifferent social andbusiness systemsinteract with oneanother. |
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Support Activities |
Firm activities that add value indirectly, but are necessary to sustain primary activities. |
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SWOT Analysis |
FRAMEWORK - allows managers to synthesize insights obtained from an internal analysis of the company’s strengths and weaknesses with those from an analysis of external opportunities and threats to derive strategic implications. |
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Tangible Resources |
Resources that have physical attributes andthus are visible. |
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Valuable Resource |
One of the four key framework. A resourceis valuable if it helps afirm exploit an externalopportunity or offset anexternal threat. |
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Value Chain |
The internal activitiesa firm engages in whentransforming inputs into outputs, each activity adds incremental value. |
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VRIO Framework |
FRAMEWORK - explains and predicts firm-level competitive advantage. |
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Logical Incrementalism |
A management philosophy which states that strategies do not come into existence based on a one-time decision but rather, it exists through making small decisions that are evaluated periodically. These small decisions are not made randomly but logically through experimentation and learning. |
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Power of Buyers |
The pressures an industry’s customers can put on the producer’s margins in the industry by demanding a lower price or higher product quality. |
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Industry life cycle |
The five differentstages—introduction,growth, shakeout,maturity, and decline—that occur in theevolution of an industryover time. |
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Balance Scorecard |
Strategy implementationtool that harnessesmultiple internal andexternal performancemetrics in order tobalance financial andstrategic goals. |
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Ambidextrous Organization |
An organization ableto balance and harnessdifferent activities intrade-off situations. |
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Horizontal Integration |
The process of mergingwith competitors,leading to industryconsolidation. |
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Learning Races |
Situations in which bothpartners in a strategicalliance are motivatedto form an alliance forlearning, but the rate atwhich the firms learnmay vary. |
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Real-Options Perspective |
Approach to strategicdecision making thatbreaks down a largerinvestment decisioninto a set of smallerdecisions that arestaged sequentially overtime. |