| V: Valuable R:Rare I:Inimitable N:Non-substitutable | The competitive power of a resource or capability is measured by how many of four specific tests it can pass. These tests are referred to as the VRIN Test for Sustainable Competitive Advantage. |
| the set of actions that its managers take to out preform competitors and achieve superior profitability. | A company's STRATEGY is the _______ its managers take to _______ and _______. |
| Value Chain | This identifies the primary activities and related support activities that create value for buyers which include the collection of activities undertaken in the course of producing, deliver, and supporting its products and services. |
| Rival Sellers, Potential New Entrants, Substitute Products, Suppliers, and Buyers. | the five forces analysis hold that competitive pressures on companies within an industry come from theses five sources. |
| strength of rivalry | Which one tends to be the strongest of the five forces? |
| Is the firms target market BROAD OR NARROW? and Is the competitive advantage pursued linked to LOW COST OR PRODUCT DIFFERENTIATION? | The two key factors that distinguish one strategy from another: |
| 1. Developing a strategic VISION, MISSION, and CORE VALUES.
2. SETTING OBJECTIVES
3. CRAFTING A STRATEGY to achieve the objectives and the company vision
4. EXECUTING CHOSE STRATEGY
5.MONITORING developments, evaluating performance, and initiating CORRECTIVE ADJUSTMENTS | List the five stages of the strategy process? |
| 1.What is our present situation?
2.Where do we want to go from here?
3.How are we going to get there? | List the three questions that must be answered in the process of crafting a strategy. |
| Strength, Weakness, Opportunities, and Threats | The meaning of the acronym SWOT. |
| Basing a company's strategy on its most competitively valuable strengths gives the company its best chance for market success. | In order to give a company its best chance for market success, which part of the SWOT should a company base its strategy? |
| Drawing a conclusion from the SWOT listings about the firms overall situation. Translating theses conclusions into strategic actions by the firm that: Match its strategy to its internal strengths and to market opportunities. Correct important weaknesses and defend it against external threats. | Name the two most important parts of SWOT analysis. |
| 1. Future
2. Present | A strategic vision describes management's aspirations for the companies?
A firms mission describes the scope and purpose of its? |
| 1.Market leaders that are in vulnerable competitive positions.
2.Runner-up firms with weaknesses in areas where the challenger is strong
3.Struggling enterprises on the verge of going under.
4.Small local and regional firms with limited capability. | Name one of the four best targets for an offensive attack to improve market position. |
| V: VALUE provided to customers
P: PRICE charged to customers
C: firms COST | Name the three components of the business model. |
| Driving Forces | This term describes the major underlying causes of change in industry and competitive conditions. |
| Weakest | The best strategic offensives use a company's most powerful resources and capabilities to attack rivals where they are competitively? |
| 1.Weather the company is achieving its stated financial and strategic objectives.
2. Weather its financial performance is above the industry average
3. Weather it is gaining customers and increasing its market share | There are three best indicators that a strategy is working. |
| Vision, Mission, Objectives, and Strategy | The Four elements that make up a strategic plan? |
| blue ocean strategy | This offensive strategy offer growth in revenues and profits by discovering or inventing new industry segments that create altogether new demand. |
| A firm achieves a competitive advantage by meeting customer needs either more EFFECTIVELY compared to rival sellers or offers buyers the same value as its rivals but at a LOWER COST to the firm, | The two factors that gives a firm a competitive advantage? |
| are company assets, attributes, or abilities that are difficult to duplicate or exceed; and provide a superior or favorable long term position over competitors. | what is a sustainable competitive advantage |
| 1.Low-cost provider
2.Broad Differentiation
3.Focused low-cost
4.Focused Differentiation
5.Best-cost provider | These are known as the five generic competitive strategies. |
| Performance Targets | These are an organizations's_______ the specific results management wants to achieve. |
| Specific, Challenging, Measurable, Deadline for Achievement | What are objectives? |
| A low-cost advantage over rivals can translate into better profitability than rivals attain. | What is a cost driver? |
| This method strikes balance between financial and strategies objectives. | What is a balanced scorecard? |
| Fit test, Competitive Advantage Test, and Performance Test | List the three tests of a winning strategy? |
| Politics
Economy
Social
Technology
Environment
Legal | List the six principles components of (PESTAL) of the macro-environment. |
| 1.Add materially to a firms tech capabilities
2.Strengthen the firm's competitive position
3.Boost the firms profitability | What is benefits of a vertical integrated strategy? |
