Competitive Advantage An organization's ability to use resources so well that it performs better than the
competition
Technology Using technology to gain operating efficiencies, market exposure, and customer
loyalty
Cost & Quality Operating with greater efficiency & product or service quality
Knowledge & Speed Doing better at innovation & speed of delivery to market for new ideas
Barries to Entry Creating a market stronghold that is protected from entry by others
Financial Resources Having better investments or loss absorption potential than competitors
sustainable competitive advantage Competitive advantage that is durable & difficult or costly for others to copy or
imitate
Strategy A comprehensive action plan that identifies the long term direction for an
organization and that guides resource utilization to achieve sustainable competitive
advantage
Strategic Intent All energies directed toward accomplishing a long term target/goal
3 Levels of strategy Corporate, Business, and Functional
Strategic Management the process of formulating and implementing strategies to accomplish long-term
goals and sustain competitive advantage
Strategic Analysis To assess the organization, its environment, its competitive positioning, & its
competitive strategies
strategy formulation Developing a new or revised strategy
strategy implementation Using resources to put strategies into action, and then evaluating results so then
the implementation can be improved or the strategy changed
Mission An organization describes its reason for existence in society
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Stakeholders Including customers, shareholders, employees, suppliers, creditors, community
groups, future generations, and others - who are directly affected by the
organization & its accomplishments
Core values are broad beliefs about what is or is not appropriate behavior
Organizational culture the predominant value system for the organization as a whole
Operating objectives Direct activities toward key performance areas
What are operating objectives? Profitability, sustainability, social responsibility, financial health, cost efficiency,
customer service, product quality, market share, human talent, and innovation
SWOT strengths, weaknesses, opportunities, threats
SWOT Analysis Useful first step in analyzing the organization & its environment
Core Comptencies Things that the organization does exceptionally well in comparison with competitors
Five Forces Analysis of Industry Industry competition, new entrants, substitute products/services, bargaining power
of suppliers, and bargaining power of customers
Boston Consulting Group(BCG) Matrix A widely accepted & well-understood foundation for understanding the portofino
planning approach to strategic resource allocation decisions
Growth Strategies Seek to expand the size & scope of operations
Concentration Expanding within the same business
Diversification Expanding into different business areas
Vertical Integration Where a business moves upstream to acquire its suppliers
Retrenchment, restructuring, & turnaround strategies Pursue radical changes to solve problems
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