Strategic Management e2 Rothaermel Chapter 1 Terms

Strategy
The set of
goal-directed actions
a firm takes to gain
and sustain superior
performance relative to competitors
Competitive
Advantage
Superior
performance relative
to other competitors in
the same industry or
the industry average
Sustainable
Competitive
Advantage
Outperforming
competitors or the
industry average over
a prolonged period
of time
Competitive
Disadvantage
Underperformance
relative to other
competitors in the
same industry or the
industry average
Competitive parity
Performance of two
or more firms at the
same level
Industry effects
Firm
performance attributed
to the structure of
industry in which the
firm competes.
Firm effects
Firm
performance attributed
to the actions
managers take
Black swan events
Incidents that describe
highly improbable but
high-impact events
Stakeholders
Organizations, groups,
and individuals that
can affect or are
affected by a firm’s
actions.
Stakeholder strategy
An integrative
approach to managing
a diverse set of
stakeholders effectively
in order to gain and
sustain competitive
advantage
Stakeholder impact
analysis
A decision
tool with which
managers can
recognize, prioritize,
and address the
needs of different
stakeholders, enabling
the firm to achieve
competitive advantage
while acting as a good
corporate citizen.
Corporate social
responsibility (CSR)
A framework that
helps firms recognize
and address the
economic, legal, social,
and philanthropic
expectations that
society has of the
business enterprise at
a given point in time.
AFI strategy
framework
A model that links
three interdependent
strategic management
tasks—analyze,
formulate, and
implement—that,
together, help
managers plan and
implement a strategy
that can improve
performance and
result in competitive
advantage.
Strategic management
An integrative
management field that
combines analysis,
formulation, and
implementation in the
quest for competitive
advantage