chap 1 Strategy

The set of goal-directed actions a firm takes to gain and sustain superior performance relative to competitors

An integrative management field that combines analysis, formulation, and implementation in the quest for competitive advantage.

Enables a firm to achieve superior performance and sustainable competitive advantage relative to its competitors. It is based on a strategic management process that consists of three elements: (1) a diagnosis of the competitive challenge; (2) a guiding policy to address the competitive challenge; and (3) a set of coherent actions to implement a firm’s guiding policy.

Superior performance relative to other competitors in the same industry or the industry average.

Outperforming competitors or the industry average over a prolonged period of time.

Underperformance relative to other competitors in the same industry or the industry average.

Performance of two or more firms at the same level.

Occurs when companies with a good strategy are able to provide products or services to consumers at a price point that 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.

Organizations, groups, and individuals that can affect or are affected by a firm’s actions.

An integrative approach to managing a diverse set of stakeholders effectively in order to gain and sustain competitive advantage.

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.

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.

A model that links three interdependent strategic management tasks—analyze, formulate, and implement— that, together, help managers plan and implement a strategy that can improve performance and result in competitive advantage.

1. Build sports car.

2. Use that money to build an affordable car.

3. Use that money to build an even more affordable car.

4. While doing above, also provide zero-emission electric power generation options.

. Don’t tell anyone. 

1. Create stunning solar roofs with seamlessly integrated battery storage.

2. Expand the electric vehicle product line to address all major segments.

3. Develop a self-driving capability that is 10 times safer than manual via massive fleet learning.

4. Enable your car to make money for you when you aren’t using it