What is Strategy?
An adaptive set of actions that an organization takes to achieve a sustainable competitive advantage.
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 model consists of setting the stage, situational analysis, strategy formulation, and strategy implementation.
Process Flow Model of Strategy
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 a few questions about them on the test)
This subset of strategy offers a process for analyzing a situation and generating potential courses of action.
Strategic Planning
A shock caused by an unforeseen changing aspect of the environment.
Black Swan
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
Strategy is derived from this greek word meaning the actions of a military General.
Strategos
These are the 5 elements of Setting the Stage.
Developing a business model, mission, vision/values, setting objectives, and ethics
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.
Critical Industry Requirements