BCOR 2304 Midterm Exam Study Guide

BCOR 2304 Midterm Exam Study Guide Strategic management - Answer️️ -is the integrative management field that combines analysis, formulation, and implementation in the quest for competitive advantage. strategy - Answer️️ -is a set of goal-directed actions a firm takes to gain and sustain superior performance relive to competitors Good Strategy - Answer️️ -enables a firm to achieve superior performance and sustainable competitive advantage relative to competitors Three elements of good strategy - Answer️️ -1. a diagnosis of the competitive challenge 2. a guiding policy to address the competitive challenge 3. a set of coherent actions to implement the firm's guiding policy Diagnosis of the competitive challenge - Answer️️ -Accomplished through ANALYSIS of firm's external and internal environments A guiding policy to address the completive challenge - Answer️️ - Accomplished through strategy FORMULATION, resulting in the firm's cooperate, business, and functional strategies A set of coherent actions to implement the firm's guiding policy - Answer️️ -Accomplished through strategy IMPLEMENTATION ©SOPHIABENNET@2024/2025 Monday, August 19, 2024 10:32 PM 2 competative advantage - Answer️️ -superior performance relative to other competitors in the same industry or industry average sustainable competitive advantage - Answer️️ -outperforming competitors or the industry average over a prolonged period of time Competitve Disadvantage - Answer️️ -underperformance relative to other competitors in the same industry or the industry average Competive parity - Answer️️ -performance of two or more firms at the same level Value creation - Answer️️ -Occurs when companies with a good strategy are able to provide products or services to consumers at a price point they can afford while keeping their costs in check, thus making a profit at the same time. Both parties benefit from this trade as each captures a part of the value created stakeholders - Answer️️ -organizations, groups, and individuals that can affect or are affected by a firm's actions Stakeholder Strategy - Answer️️ -an integrative approach to managing a diverse set of stakeholders effectively in order to gain and sustain competitive advantage Stakeholder Impact Analysis - Answer️️ -a decision tool with which managers can recognize, prioritize, and address the needs of different stakeholders, enabling the firm to achieve competitive advantage while acting as a good corporate citizen ©SOPHIABENNET@2024/2025 Monday, August 19, 2024 10:32 PM 3 Stakeholder attributes - Answer️️ -power, legitimacy, urgency A stakeholder has power over a company... - Answer️️ -...when it can get the company to do something that it would not otherwise do A stakeholder has a legitimate claim... - Answer️️ -...when it is perceived to be legally valid or otherwise appropriate A stakeholder has an urgent claim when - Answer️️ -...it requires a company's immediate attention and response Stakeholder Impact Analysis - Answer️️ -1. Who are our stakeholders? 2. What are our stakeholders' interests and claims? 3. What opportunities and threats do our stakeholders present? 4. What economic, legal, ethical, and philanthropic responsibilities do we have to our stakeholders? 5. What should we do to effectively address the stakeholder concerns? Corperate Social Responsibility (CSR) - Answer️️ -a framework that helps firms recognize and address the economic, legal, social, and philanthropic expectations that society has of the business enterprise at a given point in time. CSR components - Answer️️ -economic, legal, ethical, philanthropic Effectively managing the strategy process is the result of... - Answer️️ -1. Analysis (A) ©SOPHIABENNET@2024/2025 Monday, August 19, 2024 10:32 PM 4 2. Formulation (F) 3. Implementation (I) Strategic leadership and strategy process - Answer️️ -What roles do strategic leaders play? What are the firm's vision, mission, and values? What is the firm's process for creating strategy and how does strategy come about? External Analysis - Answer️️ -What effects do forces in the external environment have on the firm's potential to gain and sustain a competitive advantage? How should the firm deal with them? Internal Analysis - Answer️️ -What effects do internal resources, capabilities, and core competencies have on the firm's potential to gain and sustain a competitive advantage? How should a firm leverage them for competitive advantage? Competitive advantage, firm performance, and business models - Answer️️ -How does the firm make money? How can one asses and measure competitive advantage? What is the relationship betw