Strategic Management 3rd edition Chapter one

Strategic Management
the integrative management field that combines analysis, formulation, and implementation in the quest for competitive advantage
Strategy
Set of goal directed actions a firm takes to gain and sustain superior performance relative to competitiors
A good stratgey
1.) Defines the competitive challenges facing an organization through a critical honest assessment of the statis quo.
2.) Provides an overarching appoach on how to deal with the competitive challenges
3.) Requires effective implementation through a coherent set of actions
Benchmark
Comparing a firms performance with another firm in the same industry or industry average
Competitive Advantage
A firm that achieve superior performance relative to other competitors in the same industry
Sustainable competitive advantage
A firm that is able to outperform its competitors or the industry average over a prolonged period of time
Competitive disadvantage
If a firm under performs its rivals or industry average
Competitive Parity
Should two or more firms perform at the same level
industry Effects
Describe the underlying economic structure of the industry. The firms performance attributed to the structure of the industry in which the firm competes
Firm effects
Attribute firm performance to the actions managers take
Black swan events
Incidents that describe highly improbable but high impact events (unexpected)
Stakeholders
organizations, groups, and individuals that can affect or be affected by a firms actions
Internal Stakeholders
stockholders, employees, and board members
External Stakeholders
Customers, suppliers, alliance partners, creditors, unions, communities, governments at various levels, and the media