MGT 3200

Flow

The psychological state of effortlessness in which you become absorbed in your work and time seems to pass quickly

Strategic dissonance

a discrepancy between upper management's intended strategy and the strategy actually implemented by the lower levels of management.

Five forces: threat of new entrants

a measure of the degree to which barriers to entry make it easy or difficult for new companies to get started in an industry

Five forces: threat of substitute products or services

a measure of the ease with which customers can find substitutes for an industry's products or services.

Five forces: Bargaining power of buyers

a measure of the influence that customers have on the firm's prices

Five forces: Bargaining power of suppliers

a measure of the influence that suppliers of parts, materials, and services to firms in an industry have on the prices of these inputs.

Five forces: Character of the rivalry

a measure of the intensity of competitive behavior between companies in an industry

BCG matrix

a portfolio strategy that managers use to categorize their corporation's businesses by growth rate and relative market share, helping them decide how to invest corporate funds.

competitive inertia

a reluctance to change strategies or competitive practices that have been successful in the past

Portfolio strategy

a strategy that minimizes risk by diversifying investment among various businesses or product lines.

Creative work environments

Workplace cultures in which workers perceive that new ideas are encouraged

Adaptive Strategies: Analyzers

a blend of the defender and prospector strategies. Analyzers seek moderate, steady growth and limited opportunities for fast growth.

Grand strategies: grand strategy

a broad strategic plan used to help an organization achieve its strategic goals

Valuable resources

allow companies to improve their efficiency and effectiveness. Unfortunately, changes in customer demand and preferences, competitors' actions, and technology can make once-valuable resources much less valuable. For sustained competitive advantage, valuable resources must also be rare resources.

Imperfectly imitable resources

are impossible or extremely costly or difficult to duplicate.

resources

are the assets, capabilities, processes, information, and knowledge that the organization controls

Strategic reference points

are the targets that managers use to measure whether their firm has developed the core competencies that it needs to achieve a sustainable competitive advantage

Grand strategies: stability strategy

focuses on improving the way the company sells the same products or services to the same customers

Grand strategies: growth strategy

focuses on increasing profits, revenues, market share, or number of places to do business

Grand strategies: retrenchment strategy

focuses on turning around very poorcompany performance by shrinking the size or scope of the business

Unfreezing

getting the people affected by change to believe that change is needed

nonsubstituable resources

meaning that no other resources can replace them and produce similar value or competitive advantage

distinctive competence

something that a company can make, do, or perform better than its competitors.

situational analysis, also called a SWOT analysis

strengths, weaknesses, opportunities, and threats, is an assessment of the strengths and weaknesses in an organization's internal environment and the opportunities and threats in its external environment

Grand strategies: Recovery

the strategic actions that a company takes to return to a growth strategy`

competitive advantage

using their resources to provide greater value for customers than competitors can

sustainable competitive advantage

when other companies cannot duplicate the value a firm is providing to customers

change intervention

workers and managers change their behavior and work practices.

Adaptive Strategies: reactors

do not follow a consistent strategy. Furthermore, rather than anticipating and preparing for external opportunities and threats, reactors tend to "react" to changes in their external environment after they occur.

rare resources

resources that are not controlled or possessed by many competing firms, are necessary to sustain a competitive advantage

Adaptive Strategies: Prospectors

seek fast growth by searching for new market opportunities, encouraging risk taking, and being the first to bring innovative new products to market.

Adaptive Strategies: Defenders

seek moderate, steady growth by offering a limited range of products and services to a well-defined set of customers

Refreezing

supporting and reinforcing the new changes so they "stick."