STRATEGIC MANAGEMENT CONCEPTS AND
CASES: COMPETITIVENESS AND
GLOBALIZATION 1 BY DUANNE COMPLETE
STUDY GUIDE AND BUSINESS STRATEGY
REVIEW 2026
◉ strategy.
Answer: *an integrated and coordinated set of commitments and
actions designed to exploit core competencies ad gain a competitive
advantage*
-chosen strategy indicates what a firm *will do* as well as what a
firm *will not do*
*Examples*:
-McDonald's continues to adapt to local environment by making
major changes. It changed its name to Macca in Australia b/c people
there often abbreviate names to avoid multiple syllables. So Mickie
D's shortened it to two syllables and used its golden arches as a
symbol of the firm
*a firm's strategy also demonstrates how it differs from its
competitors*
,-Ford devoted efforts to explain to stakeholders how the company
differs from its competitors. The main idea is that Ford claims that it
is "greener" and more technically advanced than its competitors
such as GE Motor and Chrysler
◉ competitive advantage.
Answer: implements a strategy that creates superior value for
customers and competitors are unable to duplicate or find too costly
to try to imitate
◉ above average returns.
Answer: *returns in excess of what an investor expects to earn from
other investments with similar amount of risk*
-returns often measured in terms of accounting figures, such as
return on assets, return on equity, or return on sales
-can be measured on the basis of stock market returns, such as
monthly returns (*end of stock price - the beginning stock price/
beginning stock price*, as a percentage return)
-smaller, new venture firms, returns are sometimes in terms of the
amount and speed of growth (in annual sales) rather than
traditional profitability measures
, ◉ risk.
Answer: an investors uncertainty about the economic gains or losses
that will result from a particular investment
◉ average returns.
Answer: *returns equal to those an investor expects to earn from
other investments with a similar amount of risk*
-in the long run, an inability to earn at least average returns results
first in decline and eventually failure (*occurs b/c investors
withdraw their investments from those firs earning less-than
average returns*)
◉ The Strategic Management Process.
Answer: *the full set of commitments, decisions, and actions
required for a firm to achieve strategic competitiveness and earn
above-average returns*
The process involves
1) *analysis*: external and internal organization to determine its
resources, capabilities, ad core competencies- on which its strategy
likely will be based
-with the info from external and internal, the firm develops its vision
and mission and formulates one or more strategies
CASES: COMPETITIVENESS AND
GLOBALIZATION 1 BY DUANNE COMPLETE
STUDY GUIDE AND BUSINESS STRATEGY
REVIEW 2026
◉ strategy.
Answer: *an integrated and coordinated set of commitments and
actions designed to exploit core competencies ad gain a competitive
advantage*
-chosen strategy indicates what a firm *will do* as well as what a
firm *will not do*
*Examples*:
-McDonald's continues to adapt to local environment by making
major changes. It changed its name to Macca in Australia b/c people
there often abbreviate names to avoid multiple syllables. So Mickie
D's shortened it to two syllables and used its golden arches as a
symbol of the firm
*a firm's strategy also demonstrates how it differs from its
competitors*
,-Ford devoted efforts to explain to stakeholders how the company
differs from its competitors. The main idea is that Ford claims that it
is "greener" and more technically advanced than its competitors
such as GE Motor and Chrysler
◉ competitive advantage.
Answer: implements a strategy that creates superior value for
customers and competitors are unable to duplicate or find too costly
to try to imitate
◉ above average returns.
Answer: *returns in excess of what an investor expects to earn from
other investments with similar amount of risk*
-returns often measured in terms of accounting figures, such as
return on assets, return on equity, or return on sales
-can be measured on the basis of stock market returns, such as
monthly returns (*end of stock price - the beginning stock price/
beginning stock price*, as a percentage return)
-smaller, new venture firms, returns are sometimes in terms of the
amount and speed of growth (in annual sales) rather than
traditional profitability measures
, ◉ risk.
Answer: an investors uncertainty about the economic gains or losses
that will result from a particular investment
◉ average returns.
Answer: *returns equal to those an investor expects to earn from
other investments with a similar amount of risk*
-in the long run, an inability to earn at least average returns results
first in decline and eventually failure (*occurs b/c investors
withdraw their investments from those firs earning less-than
average returns*)
◉ The Strategic Management Process.
Answer: *the full set of commitments, decisions, and actions
required for a firm to achieve strategic competitiveness and earn
above-average returns*
The process involves
1) *analysis*: external and internal organization to determine its
resources, capabilities, ad core competencies- on which its strategy
likely will be based
-with the info from external and internal, the firm develops its vision
and mission and formulates one or more strategies
