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Company's Strategy
Consists of the competitive moves and business approaches that managers are employing to compete successfully, improve performance, and grow the business. TERM 2
Sustainable Competitive Advantage
DEFINITION 2 is achieved when it can meet customer needs more effectively or efficiently than rivals and when the basis for this is durable, despite the best efforts of competitors to match or surpass this advantage. TERM 3
Competitive Advantage comes from
DEFINITION 3 ...comes from an ability to meet customer needs more effectively, with products or services that customers value more highly, or more efficiently, at lower cost. TERM 4
4 most frequently used and dependable
strategic approaches to setting a company
apart
DEFINITION 4
- Striving to be the industry's low-cost provider, thereby aiming for a cost-based competitive advantage over rivals. TERM 5
4 most frequently used and dependable
strategic approaches to setting a company
apart
DEFINITION 5
- Outcompeting rivals on the basis of differentiating features, such as higher quality, wider product selection, added performance, value-added services, more attractive styling, and technological superiority.
4 most frequently used and dependable
strategic approaches to setting a company
apart
- Focusing on a narrow market niche and winning a competitive edge by doing a better job than rivals of serving the special needs and tastes of buyers in the niche. TERM 7
4 most frequently used and dependable
strategic approaches to setting a company
apart
DEFINITION 7
- Aiming to offer the lowest (best) prices for differentiated goods that at least match the features and performance of higher-priced rivals brands. TERM 8
How is strategy shaped?
DEFINITION 8 A company's strategy is shaped partly by management analysis and choice and partly by the necessity of adapting and learning by doing. TERM 9
Deliberate Strategy or Proactive Strategy
DEFINITION 9 consists of strategy elements that are both planned and realized as planned TERM 10
Emergent Strategy or Reactive Strategy
DEFINITION 10 consists of new strategy elements that emerge as changing conditions warrant
The Competitive Advantage Test
Can the strategy help the company achieve a sustainable competitive advantage? TERM 17
The Performance Test
DEFINITION 17 Is the strategy producing good company performance? TERM 18
What is the cause of a company's
performance?
DEFINITION 18 How well a company performs if directly attributable to the caliber of its strategy and the proficiency with which the strategy is executed. TERM 19
Stages of crafting and executing a company's
strategy
DEFINITION 19
- Developing a strategic vision of the company's long-term direction, a mission that describes the company's purpose, and a set of values to guide the pursuit of the vision and mission. TERM 20
Stages of crafting and executing a company's
strategy
DEFINITION 20
- Setting objectives and using them as yardsticks for measuring the company's performance and progress.
Stages of crafting and executing a company's
strategy
- Crafting a strategy to achieve the objectives and move the company along the strategic course that management has charted. TERM 22
Stages of crafting and executing a company's
strategy
DEFINITION 22
- Executing the chosen strategy efficiently and effectively TERM 23
Stages of crafting and executing a company's
strategy
DEFINITION 23
- Monitoring developments, evaluating performance, and initiating corrective adjustments in the company's vision and mission, objectives, strategy, or execution in light of actual experience, changing conditions, new ideas, and new opportunities. TERM 24
Strategic Vision
DEFINITION 24 Management's aspirations for the future and delineates management's aspirations for the business, providing a panoramic view of "where we are going" and convincing rationale for why this makes good business sense for the company. TERM 25
Tips about a Strategic Vision
DEFINITION 25 Strategic vision can usually be stated adequately in one to two paragraphs, and managers should be able to explain it to the company personnel and outsiders in 5-10 minutes.
Financial objectives
relate to the financial performance targets management has established for the organization to acheive. TERM 32
Strategic Objectives
DEFINITION 32 relate to target outcomes that indicate a company is strengthening its market standing, competitive vitality, and future business prospects. TERM 33
Balanced
Scorecard
DEFINITION 33 The Balanced Scorecard is a tool that is widely used to help a company achieve its financial objectives by linking them to specific strategic objectives derived from the company's business model. TERM 34
A Company's Strategy-Making Hierarchy
DEFINITION 34 Corporate StrategyBusiness Strategy (one for each bus. the co. has diversified into)Functional Area Strategies (within each bus.)Operating Strategies within Each Business TERM 35
Strategic Plan
DEFINITION 35 A company's strategic plan lays out its future direction and business purpose, performance targets, and strategy.
Strategic Intent
A company exhibits strategic intent when it relentlessly pursues an exceptionally ambitious strategic objective, committing to do whatever it takes to achieve the goals. TERM 37
The Board of Director's Four Roles
DEFINITION 37
- Critically appraise the company's direction, strategy and business approaches. TERM 38
The Board of Director's Four Roles
DEFINITION 38
- Evaluate the caliber of senior executives' strategic leadership skills TERM 39
The Board of Director's Four Roles
DEFINITION 39
- Institute a compensation plan for top executives that rewards them for actions and results that serve stakeholder interests - especially those of shareholders. TERM 40
The Board of Director's Four Roles
DEFINITION 40
- Oversee the company's financial accounting and financial reporting practices.
