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Flashcards in concepts of strategy Deck (5)
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1
Q

What is strategy?

A

Strategy is an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage.

2
Q

What is the strategic management process?

A
  1. External enviro analysis, internal enviro analysis (core competencies, resources, strategic inputs)
  2. Vision and mission developed, strategies formulated
  3. strategies implemented: goal of achieving strategic competitiveness, above average returns
3
Q

What is the competitive landscape?

A
  1. globalisation: emergence of a global economy
  2. technology: rapid changes
  3. industry boundaries blurring: entertainment industry boundaries blurred
4
Q

Porters 5 forces

A
  • bargaining power of suppliers
  • bargaining power of buyers
  • product substitutes (soft drink = thirst quenching)
  • potential entrants to industry
  • rivalry
5
Q

What are the two models of strategic decision making?

A

External = I/O model

  • study external environment
  • locate industry with high potential for above average returns
  • identify the strategy called for by the attractive industry to earn above average returns
  • develop or acquire assets and skills needed to implement the strategy
  • use the firms strength (assets and skills) to implement the strategy

Internal = resource based model

  • identify resources. study strengths and weaknesses compared with competitors
  • determine firms capabilities.
  • determine potential firms resources and capabilities in terms of competitive advantage.
  • locate an attractive industry.
  • select a strategy that best allows the firm to utilise its resources and capabilities relative to opportunities in the external environment