Is achieved when a firm successfully formulates and implements a value creating strategy.
Is an integrated and cooredinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage.
A firm implements a strategy competitors are unable to duplicate or find too costly to try to imitate.
above average returns
returns in excess of what an investor expects to earn from other investments with a similar amount of risk.
an investor’s uncertainty about the economic gains or losses that will result from a particular investment.
returns equal to those an investor expects to earn from other investments with a similar amount of risk.
Strategic management process
the full set of commitments, decisions, and actions required for a firm to achieve strategic competitiveness and earn above average returns.
on in which goods, services, people, skills, and ideas move freely across geographic borders.
a set of capabilities used to respond to various demands and opportunities existing in a dynamic and uncertain competitive environment.
inputs into a firm’s production process, such as capital equipment, the skills of individual employees, patents, finances, and talented managers.
the capacity for a set of resources to perform a task or an activity in an integrative manner.
capabilities that serve as a source of competitive advantage for a firm over its rivals.
is a picture of what the firm wants to be and, in broad terms, what is wanted to ultimately achieve.
specifies the business or businesses in which the firm intends to compete and the customers it intends to serve.
the individuals and groups who can affect the firm’s vision and mission, are affected by the strategic outcomes achieved, and have enforceable claims on the firm’s performance.
people located in different parts of the firm using the strategic management process to help the firm reach its vision and mission.
refers to the complex set of ideologies, symbols, and core values that are shared throughout the firm and that influence how the firm conducts business.
entails the total profits earned in an industry at all points along the value chain.