Barney & Hesterly

Topics: Strategic management, Management, Vertical integration Pages: 1 (260 words) Published: March 10, 2011
“Strategic Management for Competitive Advantage”
(Barney and Hesterley)
CAPITULO 1 “What is Strategy and the Strategic Management Process” Strategy.- The theory about how to gain competitive advantages Strategic Management Process.- Is a sequential set of analysis and choices that can increase the likelihood that a firm will choose a good strategy, that is, a strategy that generates competitive advantage. Mission.- Is it´s long term purpose. Mission define both what a firm aspires to be in the long run and what it wants to avoid in the meantime. Objectives.- This are specific measurable targets that a firm can use to evaluate the extent to which it is realizing its mission. External Analysis.- A firm identifies the critical threats and opportunities in its competitive environment. It also examines how competition in this environment is likely to evolve and what implications that evolution has for the threats and opportunities a firm is facing. Internal Anaylisis.- Helps a firm identify its organizational strengths and weaknesses. It can be used by firms to identify those areas of its organization that require improvement and change. Strategic Choice.- A firm is ready to choose its “theory of how to gain competitive advantage”. This are both: Business-level strategies.- Actions firms take to gain competitive advantages in a single market or industry. The two most common are cost leadership and product differentiation. Corporate-level strategies.- Are actions firms take to gain competitive advantage by operating in multiple markets or industries simultaneously. Corporate level-strategies include vertical integration strategies, diversification strategies, strategic alliance strategies, and merger and
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