Chapter 1
A set of coordinated actions that an org's managers take to outperform competitors and achieve superior profitability.
What is Strategy?
Charts the company’s long-term direction, a mission statement that describes the company’s purpose, and a set of core values to guide the pursuit of the vision and mission.
What is a strategic vision?
The competitive conditions of the indurstry in which a company operates.
What are the 5 competitive forces?
What is core ideology?
The 3 HBR articles that everyone should reread before the exam.
Porter's 5 Forces, What is Strategy, Building Your Company's Vision
Achieved when the basis for buyer preferences for its product offering relative to the offerings of its rivals is durable, despite competitors efforts to nullify or overcome the appeal of its offerings
What is competitive advantage?
This statement defines a company’s purpose and is crafted to be specific enough to give the company its own identity.
What is a mission statement?
Whether consumers are able to exert strong competitive pressures on industry members.
What is the Bargaining Power of Buyers?
What is Strategic Fit?
The way a company's activities reinforce and interact with one another.
What we should all be prepared to do when taking this exam
Critically think! This exam requires more than memorization
Consists of proactive strategy elements that are planned.
What is deliberate strategy?
The elements of a strategic plan.
What are vision, mission, objectives, and strategy?
Buyer volume, buyer's ability to substitute, buyer's switching costs, buyer concentration.
What determines the strength of bargaining power of buyers?
Strategy used by Southwest Airlines. Explain/define when you give your answer.
What is a Low-Cost Strategy?
Part of this class that will not be included on the midterm exam.
BSG
Consists of reactive strategy elements that emerge as changing conditions warrant.
What is emergent strategy?
These performance targets are set high enough to push an organization to reach its full potential.
What are stretch objectives?
Does not include other brands within your industry; this type of pressure comes from an outside, closely adjoining industry.
What is Threat of Substitute Products or Services?
Essential to strategy. They create the need for choice and purposefully limit what a company offers.
What are trade-offs?
Seeking to differentiate the company’s product or service from that of rivals in ways that will appeal to a broad spectrum of buyers.
What is a broad differentiation strategy?
Key component of the Strategy-Making Hierarchy.
Anything less than a unified collection of strategies weakens the overall strategy and is likely to impair company performance.
Three steps used to analyze an industry's driving forces.
While the basic dynamic of visionary companies is to preserve the core and stimulate progress, _____ provides the context.
What is vision?