Exam #1 Guide to Definitions / Some Concepts Above Average profit pool Core values Competitive advantage Strategic competitiveness

Profit pool Earn return with same amount of risk Survival Satisfy stakeholders Core competetencies Internal and external environments Needs of critical stakeholders Strategic management process Perilous Competitive environment Globalization Market disruption Economic darwanism Hypercompetition Economic interdependence Unified world economy Dominance of world market International firms Threat Developed economies

Developing economies Consumer product retailer Single market selling Boundaryless retailing Global integration Rate of technological diffusion Knowledge intensity Value of existing technology Subversive, disruptive and destructive technology Strategic flexibility Continuos learning Strategic leaders Resource- based model Industrial /organization model Environmental factors Uniqueness Distributed unequally Highly mobile Erosion (eroding) Competitive rivalry Above average returns Strategic decision International markets Attractive Industry Porters Model Five Forces

Product substitutes Buyer power Supplier power Available capital Cost leadership strategy Differentiated product Vision Mission Culture Destiny Resources Capabilities Competitive Advantage Nonsubstituability Mobility Rareness Valuableness Costly to imitate Competitive advantage Complexity Imitate Deliberately Profit maximization Theme Contradictory

Organizational ethics / Ethical Capital market Product market Economic Organizational Stakeholders External culture Initial culture Organizational stakeholders Value chain Mission statement Shared values Personality and beliefs of CEO Stated vision Implementation Issues Synergy Strategic alignment Integration Coordination External environment Emerging forces Predicting Internal characteristics Threats

Opportunities Weak influences General environment Competitor environment Global environment Industry environment Scanning Monitoring Forecasting Assessing Trends Age structure Aging workforce Outsourcing High tech sector Dual career couples Flextime Communications technology stable cyclical segments of the general environment group of contingency workers critical factors for outsourcing tariffs patent

geographic boundaries industry boundaries impact of barriers to entries on returns frequent user programs production techniques product advertising campaigns government permits access to distribution channels product differentiation switching costs cost disadvantages independent of scale expected retaliation government licensing substitute products forward intergration backward integration bargaining power commodity rivalry price competition quality switching costs slow industry growth strategic stakes competitive intensity

factors/ forces for choosing the industry industry competitive structure pricing decisions product quality geographic locations distribution channels strategic group intensity of competition dimensions of competitor analysis information needed to gather, understand and anticipate ethical and legal practices competitor intelligence who, what, how, when, where basis for the firm strategy development product performance Value Contribution Profitability Desirability Perception Insight Judgement Competitive advantage Tangible and intangible assets and resources Leverage Financial statements

Value Book value Market capitalization Shares outstanding Planning systems Knowledge base Trust Organizational routines Training Technological resources Knowledge of human capital Financial resources Culture and interpersonal relationships Customers point of view Unique Inimitable Nonsubstitutable Valuable Focus Formal review process Customer service Competitive parity Competitive incompetence Unsustainable competitive advantage Core rigidity

a valuable and costly-to-imitate resource socially complex relationships in a firm value chain analysis

Human resource management technological development procurement support activities non-value creating functions value-stripping (ex. by the Internet) outbound logistics subverting reconfiguring joint venture shortening the value chain governance cultural sensitivity