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?