STRATEGIC MANAGEMENT CONCEPTS AND CASES 14 COMPLETE PREPARATION GUIDE WITH SWOT, PORTER’S FIVE FORCES, AND STRATEGIC FORMULATION REVIEW

STRATEGIC MANAGEMENT CONCEPTS AND
CASES 14 COMPLETE PREPARATION GUIDE
WITH SWOT, PORTER’S FIVE FORCES, AND
STRATEGIC FORMULATION REVIEW

◉ Strategic Management Process (Steps).
Answer: Internal and external analysis, vision and mission, strategy
formulation, implementation, strategic competitiveness


◉ Strategy.
Answer: Integrated and coordinated set of commitments and actions
designed to exploit core competencies and gain a competitive
advantage (what they will and will not do)


◉ Competitive Advantage.
Answer: A firm implements a strategy that creates superior value for
customers and that competitors are unable to duplicate or find it too
costly (can have more than one)


◉ How long does a competitive advantage last?.
Answer: Until other competitors are able to acquire the skills
needed to duplicate the benefits of a firm's value-creating strategy,
availability of substitutes of core competence

, ◉ Above-Average Returns.
Answer: Returns in excess of what an investor expects to earn from
other investments with a similar amount of risk


◉ Risk.
Answer: Investor's uncertainty about the economic gains or losses
that will result from a particular investment


◉ How are returns measured?.
Answer: Accounting: return on assets, equity, sales; Finance:
monthly stock returns, annual sales, growth


◉ Average Returns.
Answer: Returns equal to those an investor expects to earn from
other investments with a similar amount of risk, firms that have no
competitive advantage


◉ 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, dynamic/always changing


◉ ASP Model.