MGT 400 Odom Test 1

Resource-based view

a model that sees certain types of resources as key to superior firm performance (tangible and intangible)

Strategic Management

an integrative management field that combines analysis, formulation, and implementation in the quest for competitive advantage

Resources

are any assets that a firm can draw on when formulating and implementing a strategy. such as cash, buildings, machinery, or intellectual property.

external factors

in the firm's task environment are ones that managers do have some influence over., such as the composition of their strategic groups or the structure of the industry. Political Economic Sociocultural Technological Ecological Legal

strategic commitments

often costly and long term oriented and difficult to reverse (vlasic)

Capabilities

organizational and managerial skills necessary to orchestrate a diverse set of resources and deploy them strategically

stakeholders

organizations, groups, and individuals that can be affected by a firms actions. 1.) internal- Stockholders, employees, board members. 2.) external- Customers, , suppliers, alliance partners, creditors, unions, communities, media, and governments at various levels.

Competitive Parity

performance of two or more firms at the same level

What Constitutes Good Strategy?

A strategy is good when it enables a firm to achieve superior performance. It consists of 3 elements 1.) A diagnosis of the competitive challenge 2.) A guiding policy to address the competitive advantage 3.) A set of coherent actions to implement a firm's guiding policy.

strategic positioning

A unique position within an industry that allows the firm to provide value to customers while controlling costs. Requires trade offs

competitive industry structure

refers to elements and features common to all industries, including the number and size of competitors, the firms' degree of pricing power, the type of product or service offered, and the height of entry barriers

Popular Business Models

Razor-razorblades Subscription Pay as you go Freemium Wholesale Agency Bundling

Resource Stocks and Flows

Resource stocks The firm's current level of intangible resources Resource flows The firm's level of investments to maintain or build a resource

business models

stipulates how the firm conducts its business with its buyers, suppliers, and partners in order to make money

competitive advantage

superior performance relative to other competitors in the same industry or the industry average

Strategy Process

the ideas and actions that explain how a firm will make its profit

strategic group

the set of companies that pursue a similar strategy within a specific industry

competitive disadvantage

underperformance relative to other competitors in the same industry or the industry average

core competencies

unique strengths, embedded deep within a firm, that are critical to gaining and sustaining competitive advantage

Business Models: Key Questions

1) Who are my customers? 2) What do customers value? 3) How much will it cost to deliver value to customers? 4) How do we make money in this business?

strategy Process Levels

1.) Strategy Formulation- The choice in strategy in terms of where and how to compete. 2.) Strategy Implementation- Concerns the organization, coordination, and integration of how work gets done.

Leadership Pyramid

A conceptual framework of leadership progression with five distinct, sequential levels. Level 1: Highly Capable Individual; Makes a productive contributions through motivation, talent, knowledge, and skills. Level 2: Contributing team member; Uses high level of individual capability to work effectively with others in order to achieve team objectives. Level 3: Competent Manager; is efficient and effective in organizing resources to accomplish stated goals and objectives. Does things right. Level 4: Effective leader; Presents compelling vison and mission to guide groups toward superior performance. Does the right things. Level 5: Executive; Builds enduring greatness through a combination of willpower and humility.

Porter's 5 Forces

Helps managers understand the profit potential of different industries and how they can position their respective firms to gain and sustain competitive advantage. 1.) Threat of entry 2.) Power of suppliers 3.) Power of buyers 4.) Threat of substitutes 5.) Rivalry among existing competitors

shareholder

Individual or organizations that own one or more shares of stock in a company. (are the legal owners of a company.)

Key Points about Strategy

Intended Strategy- the outcome of a rational and structured top-down strategic plan. Realized strategy- A combination of intended and emergent strategy. Emergent Strategy- Any unplanned strategic initiative Bubbles up from the bottom of the organization Can influence and shape a firm's overall strategy.

Macroeconomic Factors

Interest, Currency exchange rates, Growth rates, Levels of Employment, Price Stability ( inflation and deflation)

Stakeholder Analysis

Stake holder impact analysis provides 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. Step 1.) Who are the stakeholders? Step 2.) What are our stakeholders' interests and claims? Step 3.) What opportunities and threats do our stakeholders present? Step 4.) What Economic, legal, ethical, and philanthropic responsibilities do we have to our stakeholders. Step 5.) What should we do to effectively address the stakeholders concerns?

Approaches to organizational Strategy****

Strategic Planning- a formal, top-down planning approach. Scenario Planning- A formal, top-down planning approach . Strategy as planned Emergence- Begins with a strategic plan, but is less formal.

Balanced Scorecard (BSC)

Strategy implementation tool that harnesses multiple internal and external performance metrics in order to balance financial and strategic goals 1.) how do customers view us? 2.) How do we create value? 3.) What are the core competencies? 4.) How do shareholders view us?

A Sixth Force: Complements

The strategic role of compliments. A complement is a product or service, or competency that adds value to the original product offering when the two are used in tandem. A complementor is a company that provides a good or service that leads customers to value your firm's offering more when the two are combined.

frameworks for assessing competitive advantage

balanced score card the triple bottom line business models

Isolating Mechanisms

barriers to imitation that prevent rivals from competing away the advantage a firm may enjoy better expectations of future resource value Path dependance causal abiguity intellectual property

Triple Bottom Line

combination of economic, social, and ecological concerns that can lead to a sustainable strategy