Ch. 1 - What is a strategy?
legitimate
a stakeholder has a ________ claim when it is perceived to be legally valid or otherwise appropriate
stakeholder impact analysis
a decision tool with which managers can recognize, prioritize and address the needs of different stakeholders, enabling the firm to achieve competitive advantage while acting as a good corporate citizen
corporate social responsibility
a framework that helps firms recognize and address the economic, legal, social and philanthropic expectations that society has of the business enterprise at a given point in time
AFI framework
a model that links 3 interdependent management tasks that, when used together, help managers plan and implement a strategy that can improve performance and result in competitive advantage
implementation
a set of coherent actions to implement the firm's guiding policy
power
a stakeholder has ________ over a company when it can get the company to do something that it would not otherwise do
urgent
a stakeholder has an _______ claim when it requires a company's immediate attention and response
stakeholder strategy
an integrative approach to managing a diverse set of stakeholders effectively in order to gain and sustain competitive advantage
strategic management
an interactive management field that combines analysis, formulation, and implementation in the quest
analysis
diagnosis of the competitive advantage --> accomplished through the analysis of the firm's internal and external environments
industry effects
examples of these effects are: -entry and exit barriers -number and size of companies -types of products and services offered
firm effects
firm performance attributed to the actions managers take
industry effects
firm performance attributed to the structure of the industry in which the firm competes
formulation
guiding policy to address the competitive challenge
stakeholders
organizations, groups, and individuals that can affect or are affected by a firm's actions
sustainable competitive advantage
outperforming competitors or the industry average over a prolonged period of time
competitive parity
performance of two or more firms at the same level
competitive advantage
superior performance relative to other competitors in the same industry or industry average
bad strategy
the inability to choose and using template-style strategy leads to:
strategy
the set of goal-directed actions a firm takes to gain and sustain competitive advantage
firm effects
this effect is the more important factor in determining firm performance than external environment forces
formulation
this element of good strategy results in the firm's corporate, business and functional strategies
competitive disadvantage
underperformance relative to other competitors in the same industry or industry average
power, legitimacy, urgency
what 3 stakeholder attributes must managers note in the stakeholder impact analysis
profitability and market share
what are the rewards of superior value creation and capture?
external
which stakeholders encompass customers, suppliers, alliance partners, creditors, unions, communities, governments, and the media?
internal
which stakeholders encompass employees, stockholders, and board members
industry effects
which, industry or firm effects, are determined by elements common to all industries?
