Mgmt Midterm

Strat Unit Test Review Chapter One: Strategic Management Process: Mission --> Objectives --> Internal & External Analysis --> Strategic Choice --> Strategic Implementation --> Competitive Advantage Mission: A firms long term purpose. A desire future state: the aspiration of the organization. - Long term Mission Statements: Good ones are: graphic, directional, focused, flexible, feasible, desirable, easy to communicate, challenging. Bad ones are: vague/incomplete, not forward looking, too broad, bland/ininspiring, not distinctive, too reliant on superlatives. Objectives: Specific, measurable targets - The things a firm needs to do to achieve its mission - should influence other elements in the strategic management process - Should be SMART: specific, measurable, achievable, realistic, timeline External Analysis: Porter's 5 Forces, SWOT, PESTEL Internal Analysis: VRIO External and Internal analysis aid strategic choice at either a business or corporate level Levels of Strategy: Corporate - Business - Functional - Operating Strategic Implementation: - how strategies are carried out - who will do what - organizational structure and control - who reports to whom - how does the firm hire, promote, pay, etc Competitive Advantage: - there must be something different about a firm's offering vs. competitor's offerings Measuring Competitive Advantage: - Accounting Measures - Economic Measures Two