What is Strategy? - ANSWERSis an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain competitive advantage
An effective strategy enables what? - ANSWERSenables firm to exploit competencies in a way that differentiates itself from competitors
...
SEVI 3013 - Final Exam 100% Correct!!
What is Strategy? - ANSWERSis an integrated and coordinated set of commitments
and actions designed to exploit core competencies and gain competitive advantage
An effective strategy enables what? - ANSWERSenables firm to exploit competencies in
a way that differentiates itself from competitors
Effective strategy allows: - ANSWERSfirm to outperform its rivals, and achieve above
average returns
Above Average Returns - ANSWERSreturns in excess of what an investor expects to
earns from other investments with a similar amount of risk
what questions do strategy answer? - ANSWERS1. WHERE do we compare
2. What UNIQUE VALUE do we bring?
3. What RESOURCES & CAPABILITIES do we utilize?
4. How do we SUSTAIN UNIQUE VALUE over time?
I/O Model - ANSWERSthe external environment drives company performance - Find the
"right" industry
Resource Based Model - ANSWERSresources and capabilities drive company
performance - identify and lever core competencies
Industry Environment Analysis - ANSWERS1) Threat of new entrants
2) Bargaining power of suppliers
3) Bargaining power of buyers
4) Threat of substitute products
5) Intensity of rivalry among competitors
External Analysis Outcomes - ANSWERSdetermine the opportunities and threats in an
industry or any segment that will drive profitability, growth, and volatility through
1) economic
2) sociocultural
3) global
4) technological
5) political/legal
6) demographic
Five Forces Model (finding the "right" Industry) - ANSWERSRivalry among existing
competitors: 1. threat of new entrants
2. bargaining power of buyers
3. threat of substitutes products or services
, 4. bargaining power of suppliers
Components of External Analysis
1. Scanning - ANSWERSidentifying early signs of environmental changes and trends
Components of External Analysis
2. Monitoring - ANSWERSdefining meaning through ongoing observations of changes
and trends
Components of External Analysis
3. Forecasting - ANSWERSdeveloping projections of anticipated outcomes based on
changes and trends
Components of External Analysis
4. Assessing - ANSWERSdetermining the timing and importance of changes and
trends for firms strategies
Internal Analysis - ANSWERS- The process of examining an organization's strengths
and weaknesses.
- helps the company decision-makers accurately identify areas for growth or revision to
form a practical business strategy or business plan.
Tangible Resources - ANSWERSresources that have physical attributes and thus are
visible
intangible resources - ANSWERSresources that do not have physical attributes and
thus are invisible
Building Competitive Advantage - ANSWERS1. Resources: physical, human,
organizational capital (tangible & intangible)
2. Capability: an integrated set of resources
3. Core competencies: a source of competitive advantage
Characteristics of Core Competency - ANSWERS- costly to imitate
- valuable
- rare
- non substitutable
Not valuable, rare, costly to imitate, nonsubstitutable - ANSWERSits has a competitive
disadvantage with below avg returns
valuable and somewhat non substitutable - ANSWERSit has competitive parity with
average returns
valuable, rare, and somewhat non substitutable - ANSWERStemporary competitive
advantage and above avg to avg returns
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller papersmaster01. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $14.99. You're not tied to anything after your purchase.
