GLO-BUS EXAM 1 FULL REVISION NOTES WITH
COMPETITIVE STRATEGY AND MARKET
ANALYSIS CONCEPTS
◉ 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
-Provides a sense of winning
-Motivates employees to aim for the same target
◉ Strategic Intent.
Answer: Outlines a firm's stretch goal that is based on a firm's vision
,◉ Actions Based on Vision.
Answer: -Build necessary resources
-Build capabilities
-Ensure continuous organizational learning
-Ensure learning from failure
◉ Customer-Oriented Vision.
Answer: Focus employees on problem solving for the customer.
Customer needs may change. The means of meeting those needs
may change also.
◉ Product-Oriented Vision.
Answer: Focus employees on improving existing products and
services. Forces managers to take a more myopic view. Can hinder
understanding of the competitive landscape.
◉ Vision and Competitive Advantage Relationship is Strongest.
Answer: When:
-The vision is customer-oriented
-Internal stakeholders help define the vision
-Organizational structures align to the vision
, ◉ Strategic Positioning.
Answer: A unique position within an industry that allows the firm to
provide value to customers, while controlling costs
◉ Unique Strategic Position.
Answer: The key to successful strategy requires combining activities
◉ Economic Contribution.
Answer: Value creation minus costs. The greater, the better.
Enhances the likelihood of a competitive advantage
◉ Trade-Offs Managers Must Make.
Answer: -How to allocate resources
-Which activities to pursue
◉ Mission.
Answer: What an organization actually does: The products and
services it will provide and the markets in which it will compete.
Defines how the vision is accomplished. How do we accomplish our
goals?
◉ Strategic Commitments.
COMPETITIVE STRATEGY AND MARKET
ANALYSIS CONCEPTS
◉ 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
-Provides a sense of winning
-Motivates employees to aim for the same target
◉ Strategic Intent.
Answer: Outlines a firm's stretch goal that is based on a firm's vision
,◉ Actions Based on Vision.
Answer: -Build necessary resources
-Build capabilities
-Ensure continuous organizational learning
-Ensure learning from failure
◉ Customer-Oriented Vision.
Answer: Focus employees on problem solving for the customer.
Customer needs may change. The means of meeting those needs
may change also.
◉ Product-Oriented Vision.
Answer: Focus employees on improving existing products and
services. Forces managers to take a more myopic view. Can hinder
understanding of the competitive landscape.
◉ Vision and Competitive Advantage Relationship is Strongest.
Answer: When:
-The vision is customer-oriented
-Internal stakeholders help define the vision
-Organizational structures align to the vision
, ◉ Strategic Positioning.
Answer: A unique position within an industry that allows the firm to
provide value to customers, while controlling costs
◉ Unique Strategic Position.
Answer: The key to successful strategy requires combining activities
◉ Economic Contribution.
Answer: Value creation minus costs. The greater, the better.
Enhances the likelihood of a competitive advantage
◉ Trade-Offs Managers Must Make.
Answer: -How to allocate resources
-Which activities to pursue
◉ Mission.
Answer: What an organization actually does: The products and
services it will provide and the markets in which it will compete.
Defines how the vision is accomplished. How do we accomplish our
goals?
◉ Strategic Commitments.
