The management of strategy concepts - cheating paper for exam

Topics: Strategic management, Management, Competition Pages: 7 (2209 words) Published: April 30, 2014
Ch1. Strategic management and competitiveness – firms use the strategic management process to achieve strategic competitiveness and earn above-average returns. When a firm develops and implements a value-creating strategy. The globalization of industries and their markets and rapid and significant technological changes are the two primary factors contributing to the turbulence of the competitive landscape. Two major models to help develop their vision and mission, the I/O model is that the firm’s external environment has a large influence on more than the firm’s internal resources, capabilities, and core competencies. It is used to understand the effects an industry’s characteristics. The resource-based model is that the firm’s unique resources, capabilities, and core competencies more than the firm’s external environment. When the firm uses its valuable, rare, costly-to-imitate, and non-substitutable resources and capabilities to compete its rivals. Vision and mission are formed to guide the selection of strategies based on the information from the analyses of the firm’s internal and external environments. They provide direction to the firm and signal important descriptive information to stakeholders. Stakeholders are those who can affect, and are affected by a firm’s strategic outcomes. They have enforceable claims on the company’s performance. Strategic leaders are people located in different areas and levels of the firm using the strategic management process to help the firm achieve its vision and fulfill its mission. The effectiveness is increased when it is grounded in ethical intentions and behaviors. They demands decision trade-offs, often among attractive alternatives. They predict potential outcomes of their strategic decisions. They must first calculate profit pools in their industry. It reduces the likelihood of the firm formulating and implementing ineffective strategies. Ch2. The external environment: opportunities, threats, competition, and competitor analysis – the external environment has three major parts: the general environment (elements in the broader society that affect industries and their firms), the industry environment (factors that influence a firm, its competitive actions and responses, and the industry’s profit potential), and the competitor environment (in which the firm analyzes each major competitor’s future objectives, current strategies, assumptions, and capabilities). It has four steps: scanning, monitoring, forecasting, and assessing, through this, they can identifies opportunities and threats. The general environment - demographic, economic, political/legal, socio-cultural, technological, global, and physical. The industry environment has a more direct effect on the firm’s strategic actions. The five forces model of competition is the threat of entry, the power of buyers, product substitutes, and the intensity of rivalry among competitors. From this, the firm can find a position in an industry where it can influence the forces in its favor or where it can buffer itself from the power of the forces. A strategic group is a collection of firms following similar strategies along similar dimensions. Competitive rivalry is greater within a strategic group. Competitor analysis informs the future objectives, current strategies, assumptions, and capabilities of the companies. When analyzing competitors, the firm should also identify and carefully monitor major action. Different techniques are used to create competitor intelligence: the set of data, information, and knowledge that allows the firm to better understand its competitors. Firms should use only legal and ethical practices to gather intelligences. The internet enhances firms’ capabilities to gather them. Ch3. The internal environment: resources, capabilities, competencies, and competitive advantages – the most effective organizations recognize that strategic competitiveness and above-average returns result only when core competencies...
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