MGMT 449 - MIDTERM - CH1

Card Set Information

Author:
acelaker
ID:
297242
Filename:
MGMT 449 - MIDTERM - CH1
Updated:
2015-03-01 21:44:01
Tags:
MGMT 449 MIDTERM CH1
Folders:

Description:
MGMT 449 - MIDTERM - CH1
Show Answers:

Home > Flashcards > Print Preview

The flashcards below were created by user acelaker on FreezingBlue Flashcards. What would you like to do?


  1. A company's strategy is the ???
    management is using to stake out a market position, conduct its operations, attract and please customers, compete successfully, and achieve the desired performance targets.
    game plan
  2. The central thrust of a company's strategy is undertaking moves to build and strengthen the company's long-term competitive position and financial performance by
    competing differently from rivals and gaining a sustainable competitive advantage over them.
  3. A company achieves a ???????
    when it can meet customer needs more effectively or efficiently than rivals and when the basis for this is durable, despite the best efforts of competitors to match or surpass this advantage.
    sustainable competitive advantage
  4. A company's strategy typically evolves over time, emerging from a blend of
    (1) proactive and deliberate actions on the part of company managers to improve the strategy and
  5. (2) reactive, as-needed adaptive responses to unanticipated developments and fresh market conditions.
  6. A company's business model is management's story line for how the strategy will be a moneymaker. It contains two crucial elements:
    (1) the customer value proposition —a plan for satisfying customer wants and needs at a price customers will consider good value, and

    (2) the profit formula —a plan for a cost structure that will enable the company to deliver the customer value proposition profitably
  7. A winning strategy will pass three tests:
    (1) Fit (external, internal, and dynamic consistency),

    (2) Competitive Advantage(durable competitive advantage), and

    (3) Performance(outstanding financial and market performance)
  8. Strategy is all about
    HOW

    ●How to outcompete rivals.

    • ●How to respond to economic and
    • market conditions and growth opportunities.

    • ●How to manage functional pieces of
    • the business.

    ●How to improve the firm’s financial and market performance.
  9. A firm does strategy
    ●To improve its financial performance.

    ●To strengthen its competitive position.

    To gain a sustainable competitive. advantage over its market rivals
  10. Competitive Advantages
    Low Cost Provider

    Differentiation on features

    Focus on market niche

    Best-cost provider
  11. Profit Formula
    • ●Creating a cost structure that allows for acceptable profits, given that pricing is tied
    • to the customer value proposition.

    V—the value provided to customers

    P—the price charged to customers

    C—the firm’s costs
  12. The competitive moves and business approaches a company's management are using grow the business, attract and please customers, compete successfully, conduct operations, and achieve the targeted levels of organizational performance is referred to as its
    strategy
  13. A company achieves sustainable competitive advantage when
    an attractive number of buyers have a lasting preference for its products or services as compared to the offerings of competitor
  14. A company's business model
    is management's rationale for how the strategy will be a moneymaker—absent the ability to deliver good profitability, the strategy is not viable and the survival of the business is in doubt.
  15. A winning strategy is one that
    fits the company's internal and external situation, builds sustainable competitive advantage, and boosts company performance.
  16. Crafting and executing strategy are top-priority managerial tasks because
    there is a compelling need for managers to proactively shape how the company's business will be conducted and because a strategy-focused organization is more likely to be a strong bottom-line performer
  17. The most trustworthy signs of a well-managed company are
    good strategy and good strategy execution.

What would you like to do?

Home > Flashcards > Print Preview