What is Strategy?
The set of actions that its managers take to outperform the company's competitors and achieve superior profitability.
Strategy
Examples of this type of objective include: earning AAA bond ratings, increasing ROA by 2%, increasing profit margins by 5%, and so forth
Financial objectives
Factors outside a company's industry boundaries—economic conditions, political factors, sociocultural forces, technological factors, environmental factors, and legal/regulatory conditions
Macro-Environment or General Environment
This lays out the company's approach to satisfying customer wants and needs at a price that customers will consider a good value.
Customer value proposition
This serves as management's narrative tool for giving the organization a sense of direction.
Strategic vision
A cluster of industry members with similar competitive approaches and market positions in the market
Strategic Group
Planned initiatives to improve the company’s financial performance and secure a competitive edge.
Proactive, Intended, or Deliberate Strategy
These are the firm's goals related to market standing and competitive position.
Strategic Objectives
A firm's environment that is characterized by Porter's 5 forces.
Competitive or Specific Environment
(study each of the 5 forces in detail. It is hard to make good jeopardy questions for them, but there will be several questions about them on the test)
This conveys how and why the company's business approaches will generate revenues sufficient to cover costs and produce attractive profits and returns on investment.
Business Model
These individuals oversee top management, financial reporting practices, and evaluate the firm's strategy, but they do not craft or execute strategies for the firm themselves.
Board of Directors
Major underlying causes of changing industry and competitive conditions and have the biggest influences in reshaping the industry landscape and altering competitive conditions.
Driving Forces
These are the three tests a strategy must pass to determine whether or not it is potentially viable.
The fit test, the competitive advantage test, and the performance test.
These are the 5 elements of the strategy making, strategy-executing process.
1. Developing a strategic vision, a mission
statement, objectives, and a set of core values.
(I.e., defining the challenge to be addressed)
2. Taking stock of relevant variables.
3. Crafting a strategy.
4. Executing a strategy.
5. Analyzing results.
The competitive factors that most affect industry members' abilities to prosper in the marketplace—the particular strategy elements, product attributes, operational approaches, resources, and competitive capabilities that spell the difference between being a strong competitor and a weak one, and between profit and loss.
Key Success Factors