Chapter 1 Strategic management

A competitive advantage that lasts for a long time is said to be _______.

Sustainable

philanthropic responsibilities

Under the idea of corporate citizenship, reflecting the notion of voluntarily giving back to society

What is the overall purpose of strategic management?

competitive advantage

Who are internal stakeholders?

employees, stockholders, board members

Competitive Parity

performance of two or more firms at the same level

Stakeholder Impact Analysis

A decision tool with which managers can recognize, assess, and address the needs of different stakeholders, to allow the firm to perform optimally and act as a good corporate citizen.

Corporate Citizenship

A firm gives back to its investors and society

competitive disadvantage

A firm that underperforms its rivals or the industry average

Stakeholder strategy

A firms attempt to manage the web of relationships between integrate internal and external stakeholders in order to create value

How should managers prioritize stakeholder concerns in the final step of the Stakeholder Impact Analysis

Considering power, legitimacy and urgency

What must a firm do after diagnosing its specific competitive challenge?

Create an effective guiding policy

Strategic Management

Field of management on attaining competitive advantage by combining analysis, formulation, and implementation

A competitive advantage _________.

Is assessed relative to other companies in the industry

Strategic positioning

Provide excellent value to its customers but also control its cost

A firm that successfully executed a strategy benefits society by

Reinvesting profits and increasing employment, creating value

Strategy

Set of actions a firm takes to achieve a competitive advantage