Definitions chapters 1,2&3 Strategy

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

embodies the view of strategic management, used to gain and sustain competitive advantage

set of goal-directed actions a firm takes to gain and sustain their competitive advantage 

enables a firm to achieve superior performance relative to its competitors 

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

outperforming competitors or industry average over prolonged period of time 

performance of 2 or more firms at same level

Staking out unique position within industry that allows firm to provide value to the customer while controlling costs, requires trade-offs

captures an organisation's aspiration. What do we want to accomplish? 

defines business in terms of good or service provided, they tend to force managers to take more myopic view of the competitive landscape, less flexibility 

defines business in terms of providing solutions to customer needs, firms can more easily adapt to changing circumstances

A stretch goal that pervades the organization with a sense of winning, which it aims to achieve by building the necessary resources and capabilities through continuous learning 

describes what a firm actually does to fulfill its vision. How do we accomplish our goals?

provides touchstones for employees but also customers 

statement of principles to guide an organization as it works to achieve its vision and fulfill its mission, for both inernal and external interactions; it often includes explicit ethical considerations. 

ethical standards and norms that govern the behaviour of the individuals within a firm or organization 

executives' use of power and influence to direct the activities of othes when pursuing an organization's goal

a conceptual framework that views organizational outcomes -strategic choices and perfomance levels- as reflections of the values of the members of the top management team 

a conceptual framework of leadership progression with 5 distinct sequential levels 

concerns the choice of strategy in terms of where and how to compete

concerns the organization, coordination and integration of how work gets done (execution of strategy)

standalone divisions of larger conglomerate, each with their own profit-and-loss responsibillity 

method put in place by strategic leaders to formulate and implement a strategy, which can lay the foundation for a sustainable competitive advantage

rational, data-driven strategy process through which top management attempts to program future succes 

strategy planning activity in which top management envisions different What-if scenarios to anticipate the plausible futures in order to derive strategic responses 

incidents that describe highly improbable but high impact events e.g. 9/11, Brexit 

strategic option that top management decide mostly closely match the current reality and which is then executed 

a tendency by people to overestimate teir ability to control events 

the outcome of a rational and structural top-down strategic plan 

combination of intended and emergent strategy 

an unplanned strategic initiative bubbling up from the bottom of the organization 

any activity a firm pursues to explore and develop new products and processes, new markets or new ventures. e.g. autonomous actions, serendipity and resource-allocation process (RAP) 

strategic initiatives undertaken by lower-level employees on their own volition and often in response to unexpected situations

any random event, pleasant surprise, and accidental happenstances that can have a profound impact on a firm's strategic initiatives

the way a firm allocates its resources based on predetermined policies which can be critical in shaping its realized strategy

strategy process in which organizational structure and system allows bottom up strategic initiatives to emerge and be evaluated and coordinated by top management

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 adress the needs of different stakeholders, enabling the firm to achieve competitive advantage while acting as a good corporate citizen

a framework that categorizes and analyzes an important set of external factors that might impinge upon a firm. These factors can create both opportunities and threats for the firm. 

they result more from processes and actions of the governement

are mainly macroeconomic factors affecting the firm e.g. growth rates, level of employement, interest rate, price stability, currency exchange rates 

society's cultures, norms, and values, nut also demographics 

include technlogical processes and development

include broad environmental issues 

include the official outcomes of political processes as manifested in law and court decisions 

firm performance attributed to the structure of the industry in which the firm competes 

firm performance attributes to the actions managers take 

a method to (1) identify an industry's profit potential & (2) derive implications for a firm's strategic postion within an industry 

firm's strategic profile based on the difference between value creation and costs (V-C) 

a framework that identifies 5 forces that determine the profit potential of an industry and shape a firm's competitive strategy

the risk that potential competitors will enter an industry 

value of a product or service for an individual user increases with the number of users 

elements and features common to all industries, including the number and size of competitors, the firms' degree of pricing power, type of product or service offered and the height of entry barriers

firms actions that are costly, long-term oriented and difficult to reverse 

obstacles that determine how easily a firm can leave an industry 

a product, service or competency that adds value to the original product offering when the 2 are used in tandem

a company that provides a good or service that leads customers to value your firm's offering more when the 2 are combined

cooperation by competitors to achieve a strategic objective 

a process whereby formerly unrelated industries begin to satisfy the same customer need 

set of companies that pursue a similar strategy within a specific industry 

framework that explains differences in firm performance within same industry 

industry-specific factors that seperate one strategic group from another