_____ is achieved when a firm successfully formulates and implements a value- creating strategy.
A _____ is an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage.
A firm has a _____ when it implements a strategy that creates superior value for customers and competitors are unable to duplicate or find too costly to try to imitate.
_____ are returns in excess of what an investor expects to earn from other investments with a similar amount of risk.
_____ is an investor 's uncertainty about the economic gains or losses that will result from a particular investment.
_____ are returns equal to those an investor expects to earn from other investments with a similar amount of risk.
The _____ is the full set of commitment, decisions, and actions required for a firm to achieve strategic competitiveness and earn above-average returns.
strategic management process
Explain the A-S-P Model of Strategic Management Process:
External environment ---> Vision / Mission
Internal organization ---> Vision / Mission
Above average returns
_____ is a term often used to capture the realities of the competitive landscape.
_____ results from the dynamics of strategic maneuvering among global and innovative combatants.
A _____ is one in which goods, services, people, skills, and ideas move freely across geographic borders.
_____ is 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.
BRIC countries include:
Brazil, Russia, India, China
VISTA countries include:
Vietnam, Indonesia, South Africa, Turkey, and Argentina
Increasingly important markets also include:
Mexico and Thailand
The speed at which new technologies become available and are used is called:
_____ is a term used to describe how rapidly and consistently new, information-intensive technologies replace older ones.
_____ is the basis of technology and its application.
Knowledge consists of _____ , _____ , and _____.
information, intelligence, and expertise
_____ is a set of capabilities used to respond to various demands and opportunities existing in a dynamic and uncertain competitive environment.
Outline the Industrial Organization (I/O) Model of above-average returns:
1. The External Environment
2. An Attractive Industry
3. Strategy Formulation
4. Assets and Skills
5. Strategy Implementation
Explain the Industrial Organization (I/O) Model of above-average returns:
1. Study the external environment, especially the industry environment.
2. Locate an industry with high potential for above-average returns.
3. Identify the strategy called for by the attractive industry to earn above-average returns.
4. Develop or acquire assets and skills needed to implement the strategy.
5. Use the firm's strengths (its developed or acquired assets and skills) to implement the strategy.
Outline the Resource-Based Model of above-average returns:
3. Competitive Advantage
4. An Attractive Industry
5. Strategy Formulation and Implementation
Explain the Resource-Based Model of above-average returns:
1. Identify the firm's resources. Study its strengths and weaknesses compared with those of competitors.
2. Determine the firm's capabilities. What do the capabilities allow the firm to do better than its competitors?
3. Determine the potential of the firm's resources and capabilities in terms of a competitive advantage.
4. Locate an attractive industry.
5. Select a strategy that best allows the firm to utilize its resources and capabilities relative to opportunities in the external environment.
The _____ of its resources and capabilities is the basis of a firm's strategy and its ability to earn above-average returns.
_____ are inputs into a firm's production process, such as capital equipment, the skills of individual employees, patents, finances, and talented managers.
A _____ is the capacity for a set of resources to per form a task or an activity in an integrative manner.
_____ are capabilities that serve as a source of competitive advantage for a firm over its rivals.
Resources are _____ when they allow a firm to take advantage of opportunities or neutralize threats in its external environment.
Resources are _____ when possessed by few, if any, current and potential competitors.
Resources are _____ when other firms either cannot obtain them or are at a cost disadvantage in obtaining them compared with the firm that already possesses them.
costly to imitate
Resources are _____ when they have no structural equivalents.
_____ is a picture of what the firm wants to be and, in broad terms, what it wants to ultimately achieve.
_____ specifies the businesses in which the firm intends to compete and the customers it intends to serve.
A firm's vision and mission are critical aspects of the _____ and the base required to engage in _____ that help to achieve strategic competitiveness and earn above-average returns.
analysis and strategic actions
_____ are the individuals, groups, and organizations that can affect the firm's vision and mission, are affected by the strategic outcomes achieved, and have enforceable claims on the firm's performance.
The three stakeholder groups include:
Capital Market Stakeholders, Product Market Stakeholders, and Organizational Stakeholders.
Shareholders and Major suppliers of capital (e.g., banks) are examples of what type of stakeholders?
Capital market stakeholders
Primary customers , Suppliers, Host communities , and Unions are examples of what type of stakeholders?
Product market stakeholders
Employees, Managers, and Nonmanagers are examples of what type of stakeholders?
_____ are people located in different areas and levels of the firm using the strategic management process to select strategic actions that help the firm achieve its vision and fulfill its mission.
_____ refers to the complex set of ideologies, symbols, and core values that are shared throughout the firm and that influence how the firm conducts business.
A _____ entails the total profits earned in an industry at all points along the value chain.