Mgt247 exam - Study guides, Class notes & Summaries

What is Strategic management? - process to formulate and implement a strategy. What is a strategy? - A set of goal directed actions a firm takes to gain and sustain a competitve advantage. Elements of a good strategy (Analysis) - diagnosis of the competitive advantage Elements of a good strategy (Formulation) - guiding policy to adress competitive advantage Elements of a good strategy (Implementation) - a set of coherent actions to implement the firm's guiding policy What is competitive...

4 stages of innovation - Idea Invention Patent Innovation Entrepreneurs-to drive out the product 5 stages of Industry life cycle - introduction growth shakeout maturity decline 5 stages of Industry life cycle: Introduction - barrier to entry is high (few firms in this phase)

Make or Buy (on exam as essay): - - costs in house < costs in market "make" - costs in market < costs in house "buy" Five reasons for alliance formation - Five reasons for alliance formation: 1.Strengthen competitive position 2.Enter new markets 3.Hedge against uncertainty 4.Access critical complementary resources 5.Learn new capabilities merger - the amalgamation of two companies to form a new company. This requires agreement by the shareholders of the two companies who then ...

Competitive advantage - Superior performance relative to competitors or industry average Sustainable competitive advantage - Outperforming competitors over a prolonged period Accounting profitability - Measuring firm's financial performance through ROIC and ROR Return on invested capital (ROIC) - Net Operating Profit After Tax divided by Invested Capital Return on revenue (ROR) - Net Income divided by Revenue Working capital turnover - Revenue divided by Invested Capital, showing capita...

Strategic Management - an integrative management field that combines analysis, formulation, and implementation in the quest for competitive advantage Strategy - a set of goal-directed actions a firm takes to gain and sustain superior performance relative to competitors Competitive Advantage - superior performance relative to other competitors in the same industry or the industry average Sustainable Competitive Advantage - out-performing competitors or the industry average over a prolonged...