Strategic Management Essay

Strategy: set of actions managers take to increase their company's performance relative to rivals

Competitive Advantage: advantage over rivals achieved when a company's profitability is greater than the average profitability of firms in its industry

Sustained Competitive Advantage: competitive advantage achieved when a company is able to maintain above- average profitability for a number of years

Strategic Planning: select mission/goals, conduct SWOT analysis, and implement strategies

Strategy formulation: analyzing the organizations external and internal environments and then selecting appropriate strategies

Strategy Implementation: putting strategies into action (SWOT)

Emergent Strategy: strategies that emerge in the absence of planning (unplanned)

Intended Strategy: planned than emerged

Realized Strategy: product of whatever planned strategy are actually put into action (deliberate strategy) and of any unplanned/emergent strategies

Unrealized Strategy: many planned strategies are not implemented due to unpredicted changes in environment

Internal Stakeholders: stockholders of employees: managers, board members, executive officers

External Stakeholders: stockholders outside the company that have some claim

Agency Theory: theory that deals with problems when one person delegates authority to another

Value Creation: value a customer places on a company product. (determined by market competition) -to create high value creation product must differentiate from competitors or lower the cost structure.

Distinct Competencies: A unique, firm specific strengths that enables a company to differentiate and/or lower cost structure to gain competitive advantage.

Porter: threat of substitutes, barging power of supplies, barging power of buyers, risk of entry by competitors

Self-Dealing: occurs when managers find a way to feather their own interest w/ company money

Info manipulation: when managers use their control over corporate data to hide or distort info in order to enhance financial situation

Anti-Competitive Behavior: actions aimed at harming actual or potential competitors (monopoly power)

Opportunistic Exploitation: when managers rewrite terms of contract in their favor w/ suppliers and buyers. Use power to force revision.

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