GLO-BUS MIDTERM COMPLETE PREPARATION
GUIDE WITH PRICING, PRODUCTION, AND
CORPORATE STRATEGY CONCEPTS
◉ Strategy.
Answer: The set of goal-directed actions a firm takes to gain and
sustain superior performance relative to competitors
◉ Resources Companies Compete for to Achieve Superior
Performance.
Answer: -New ventures: financial and human capital
-Existing companies: profitable growth
-Charities: donations
-Universities: the best students and professors
-Sports teams: championships
-Celebrities: media attention
◉ Good Strategy.
Answer: 1. A diagnosis of the competitive challenge. Analysis
2. A guiding policy to address the competitive challenge.
Formulation
,3. A set of coherent actions to implement a firm's guiding policy.
Implementation
◉ What Strategy is Not.
Answer: -Grandiose statements
-A failure to face a competitive challenge
-Operational effectiveness, competitive benchmarking, or tactical
tools
◉ Competitive Advantage.
Answer: Superior performance relative to other competitors in the
same industry or the industry average
◉ Origin of Competitive Advantage.
Answer: -Performing different activities or
-Performing the same activities differently than rivals
◉ Assess Competitive Advantage.
Answer: -Compare firm to competitors in the same industry
-Compare firm to industry average
◉ Sustainable Competitive Advantage.
, Answer: Outperforming competitors or the industry average over a
prolonged period of time
◉ Competitive Disadvantage.
Answer: Underperformance relative to other competitors in the
same industry or the industry average
◉ Competitive Parity.
Answer: Performance of two or more firms at the same level
◉ How to Gain a Competitive Advantage.
Answer: -Provide goods or services consumers value more highly
than those of its competitors
-Provide goods or services similar to the competitors' at a lower
price
◉ Vision.
Answer: A statement about what an organization ultimately wants to
accomplish; it captures the company's aspiration. What do we want
to accomplish ultimately?
◉ Effective Vision.
Answer: -Pervades the organization
GUIDE WITH PRICING, PRODUCTION, AND
CORPORATE STRATEGY CONCEPTS
◉ Strategy.
Answer: The set of goal-directed actions a firm takes to gain and
sustain superior performance relative to competitors
◉ Resources Companies Compete for to Achieve Superior
Performance.
Answer: -New ventures: financial and human capital
-Existing companies: profitable growth
-Charities: donations
-Universities: the best students and professors
-Sports teams: championships
-Celebrities: media attention
◉ Good Strategy.
Answer: 1. A diagnosis of the competitive challenge. Analysis
2. A guiding policy to address the competitive challenge.
Formulation
,3. A set of coherent actions to implement a firm's guiding policy.
Implementation
◉ What Strategy is Not.
Answer: -Grandiose statements
-A failure to face a competitive challenge
-Operational effectiveness, competitive benchmarking, or tactical
tools
◉ Competitive Advantage.
Answer: Superior performance relative to other competitors in the
same industry or the industry average
◉ Origin of Competitive Advantage.
Answer: -Performing different activities or
-Performing the same activities differently than rivals
◉ Assess Competitive Advantage.
Answer: -Compare firm to competitors in the same industry
-Compare firm to industry average
◉ Sustainable Competitive Advantage.
, Answer: Outperforming competitors or the industry average over a
prolonged period of time
◉ Competitive Disadvantage.
Answer: Underperformance relative to other competitors in the
same industry or the industry average
◉ Competitive Parity.
Answer: Performance of two or more firms at the same level
◉ How to Gain a Competitive Advantage.
Answer: -Provide goods or services consumers value more highly
than those of its competitors
-Provide goods or services similar to the competitors' at a lower
price
◉ Vision.
Answer: A statement about what an organization ultimately wants to
accomplish; it captures the company's aspiration. What do we want
to accomplish ultimately?
◉ Effective Vision.
Answer: -Pervades the organization
