MGMT 434 Outline

Topics: Strategic management, Management, Firm Pages: 3 (639 words) Published: October 14, 2013
MGMT 434 Chapter 1 Outline
I. Case 1-Borders
1.Borders was once the largest book retailer, but when web based retailing started to trend they had to declare bankruptcy 2.Outsourced its online sales to Amazon instead of establishing its own presence II. Strategic Competiveness- Is achieved when a firm successfully formulates and implements a value-creating strategy 1.Strategy- set of commitments and actions designed to exploit core competencies and gain a competitive advantage a.********Characteristics of a good strategy

-Differentiated from the competition
-Differences must matter to customers
-Must deliver the strategy profitably
-Strategy must be sustainable
2.Competitive Advantage- A firm has this advantage when it implements a strategy that creates superior value for customers exclusive to the competition because they cannot duplicate or its too costly to imitate a.Three ways to differentiate

i.Operational Excellence
ii.Customer Intimacy
iii.Product Leadership
-No competitive advantage is permanent
3.Strategic Management Process- Full set of commitment, decisions, and actions required for a firm to achieve strategic competitiveness and earn above-average returns -A firm develops a its vision and mission from external and internal analyses III. The Competitive Landscape

1.Managers must adopt a new mindset that values flexibility, speed, innovation, integration, and the challenges that constantly evolve a.Hypercompetition- Assumes market is unstable and constantly changing 2.The Global Economy-Is an economy in which goods, services, people, skills and ideas move freely across geographic borders a.Globalization-Increasing economic interdependence among countries and their organizations as reflected in the flow of goods and services, financial capital, and knowledge across country borders -Leads to higher performance standards in quality, cost, productivity, product introduction time, and operational efficiency IV. Technological Changes...
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