Chapter 1 - Strategy

Set of goal-directed actions a firm takes to gain & sustain superior performance relative to competitors 

superior performance relative to other competitors in the same industry or the industry average

profitability and market share

staking out a unique position within an industry 

underperformance relative to other competitors or the industry average over prolonged period of time

performance of two or more firms at same level

statement about what an organisation ultimately wants to accomplish

stretch goal that pervades the organisation with a sense of winning

description of what an organisation actually does (products & services it plans to provide and markets it will compete in)

back up vision & mission; are costly, long-term oriented and difficult to reverse

focus employees to think about how best to solve a problem for a consumer; increased strategic flexibility

focus on improving existing products & services without consideration of underlying consumer problems to be solved; less strategic flexibility

statement of principles to guide an organisation as it works to achieve its vision & fulfil its mission

ethical standards & norms that govern the behaviour of individuals within a firm or organisation

model that links 3 independent strategic management tasks: Analysis, Formulation & Implementation

includes: strategic leadership, external analysis, internal analysis 

Includes: Business strategy, Corporate strategy, Global strategy

Includes: organisational design, corporate governance