Strategic Management Process Overview

<p>Internal resources, capabilities, and core competencies (D)</p> Signup and view all the answers

<p>To formulate and execute strategies by integrating both external and internal insights (D)</p> Signup and view all the answers

<p>A long-term, broad picture of what the firm aspires to achieve (B)</p> Signup and view all the answers

<p>The businesses the firm will participate in and the customers it will serve (D)</p> Signup and view all the answers

<p>Maintaining the status quo to avoid risks (C)</p> Signup and view all the answers

<p>Stakeholders (B)</p> Signup and view all the answers

<p>Strategic leaders (C)</p> Signup and view all the answers

<p>To achieve strategic competitiveness and above-average returns (D)</p> Signup and view all the answers

<p>Internal capabilities (A)</p> Signup and view all the answers

<p>Scanning (D)</p> Signup and view all the answers

<p>Internal Resources (B)</p> Signup and view all the answers

<p>Five Forces Model (A)</p> Signup and view all the answers

<p>Threat of entry (D)</p> Signup and view all the answers

<p>Strategic groups (A)</p> Signup and view all the answers

<p>To anticipate competitors’ actions and adjust its strategies (A)</p> Signup and view all the answers

<p>Organizations that support/enhance competitors strategy (D)</p> Signup and view all the answers

<p>The industry's structure and competition within it (D)</p> Signup and view all the answers

<p>Evaluating strategic relevance of changes (C)</p> Signup and view all the answers

<p>Overseeing the strategic direction and the process (C)</p> Signup and view all the answers

<p>To ensure the strategy is successful though critical assessment (D)</p> Signup and view all the answers

<p>Data about competitors' future likely actions. (B)</p> Signup and view all the answers

<p>The firm’s internal resources. (A)</p> Signup and view all the answers

<p>To identify and respond to opportunities and threats. (C)</p> Signup and view all the answers

<p>The competitive nature and profitability of an industry. (B)</p> Signup and view all the answers

<p>Core competencies are internal strengths that enable a firm to achieve competitive advantage. (D)</p> Signup and view all the answers

<p>Because competitors eventually duplicate value-creating capabilities. (D)</p> Signup and view all the answers

<p>Employees' knowledge and skills are essential for creating competitive advantages. (C)</p> Signup and view all the answers

<p>Resources are inputs, and capabilities are the ability to use those inputs efficiently. (B)</p> Signup and view all the answers

<p>Easy to imitate. (B)</p> Signup and view all the answers

<p>To analyze the firm's cost structure and value creating activities. (C)</p> Signup and view all the answers

<p>When a core competence becomes ineffective over time due to lack of adaptation. (C)</p> Signup and view all the answers

<p>Purchasing a value creating activity from an external supplier. (C)</p> Signup and view all the answers

<p>Having internal strengths aligned with external opportunities. (D)</p> Signup and view all the answers

<p>To ensure they are not outsourcing activities that could create more value internally. (B)</p> Signup and view all the answers

<p>It should encourage the sharing and integrating of knowledge to create value. (D)</p> Signup and view all the answers

The key to developing strategies that help a company succeed in a competitive market and earn profits that exceed investors' expectations.

The ability of an organization to craft and execute value-creating strategies that lead to superior performance over competitors.

Returns that outpace what investors could realistically expect from companies with similar risk profiles.

An approach to strategy that emphasizes the importance of external factors in shaping a firm's strategy. It suggests achieving success by finding a strong industry and tailoring strategies to its competitive landscape.

A view on strategy that emphasizes a firm's internal resources, capabilities, and core competencies. It suggests that internal strengths are crucial for achieving strategic success.

A long-term, overarching aspiration of what the company envisions itself becoming in the future.

A statement that defines the company's purpose, its core business activities, and the customer segments it serves.

Individuals or groups influenced by or affecting a company's actions, including shareholders, customers, suppliers, employees, and communities.

Leaders at different levels of a firm who use strategic management to drive the company's vision and mission.

CEOs typically set the company's strategic direction and ensure the strategy process is followed correctly.

The top management team works together to analyze, select, and implement strategies.

The ability of a company to identify and respond to opportunities and threats in the environment.

A broad set of factors that influence industries and firms, including demographics, economics, politics, sociocultural trends, technology, global factors, and the sustainable physical environment.

The factors that directly influence a firm's competitive actions and profitability potential, focusing on the industry's structure and competition.

Analyzing the future objectives, strategies, assumptions, and capabilities of competitors to anticipate their moves and adjust your strategy.

Barriers to entry determine how easy it is for new competitors to enter an industry.

The bargaining power of suppliers influences the cost of inputs for companies.

The bargaining power of buyers determines how much influence customers have on prices and terms.

The potential for substitute products or services to replace a company's offerings.

The level of competition among existing firms in an industry.

Groups of firms following similar strategies in similar dimensions, such as low-cost leadership or differentiation.

Firms or organizations that support or complement a competitor's strategy, potentially creating opportunities or threats.

The data, information, and knowledge about competitors that help predict their future competitive actions and responses. It helps firms stay informed about competitors' strategic intentions.

Legal and ethical practices should be used for gathering competitor data. The Internet plays a critical role in enhancing the firm's ability to collect information on competitors' strategies and objectives.

The external environment influences a firm's performance and strategic decisions. Its three main parts include the general environment, industry environment, and competitor environment.

Firms must engage in scanning, monitoring, forecasting, and assessing to identify and respond to opportunities and threats. These tools help companies see what's coming and react accordingly.

The general environment includes segments such as demographic, economic, political/legal, sociocultural, technological, global, and sustainable physical factors. These factors can influence a firm's success.

The industry environment can be analyzed using Porter's Five Forces model to understand competition and profitability. This model helps determine the attractiveness of a specific industry.

Strategic competitiveness and above-average returns occur when a firm's core competencies (internal strengths) are aligned with external opportunities (environmental factors). The firm must effectively leverage what it does best in response to the world around it.

Competitive advantage is not permanent. Over time, competitors replicate the firm's value-creating capabilities by leveraging their own resources and competencies. Firms must continually innovate and adapt to stay ahead.

Sustainability of competitive advantage: Firms must continue to innovate and build new capabilities to stay ahead, as advantages can be duplicated or outpaced by rivals. Staying ahead demands a constant push for innovation.

Core competencies are the collective skills, knowledge, and abilities that a firm uses to achieve strategic success. These unique talents allow a firm to excel.

To effectively manage core competencies, firms must: analyze resources (inputs to production) and capabilities (integrated resources to achieve tasks). Human capital: Employees' knowledge is crucial for creating competitive advantages.

Resources are inputs into the production process (e.g., capital, labor, technology). Capabilities are the firm's ability to use these resources effectively and are generally a more significant source of competitive advantage.

Capabilities that are well-developed and integrated into the firm's processes become core competencies, which are often difficult for competitors to replicate. These hard-to-copy skills can provide a lasting edge.

A capability is considered a core competence when it meets the following four criteria: Valuable: It helps the firm exploit opportunities or neutralize threats in the environment. Rare: Not widely possessed by competitors. Costly to Imitate: Difficult or expensive for rivals to duplicate. Non-substitutable: Cannot be replaced by another resource or capability.