Study Guide #1 Essay

Submitted By yoshia
Words: 311
Pages: 2

Business strategy is a set of actions that managers take to increase their company’s performance relative to rivals

Competitive advantage, a company is said to have a competitive advantage is the advantage over rivals achieved when a company’s profitability is greater than the average profitability of all firms in its industry

Mission statement has 4 components, a statement of rasion detre of a company- its reason for existence
A statement of some desired future state – vision, statement of the key values the org is committed to, and statement of major goals

Porter’s five forces model is a framework for manager to analyze competitive forces in the industry environment to identify opportunities and threats that the model consist of:
1. intensity of rivalry among established firms
2. Risk of new entry by potential competitors
3. Bargaining power of buyers
4. Bargaining power of suppliers
5. Threat of substitute

SWOT analysis is to identify the strategies that will create a company specific business model that will best align, fit or match a company’ resources and capabilities to the demands of the environment in which it operates. Strength, weakness, opportunities, Threat

Industry life cycle& analysis
Identifies five sequential stages in the evolution of an industry that lead to five distinct kinds of industry environment
1. embryonic
2. growth
3. shakeout
4. mature
5. decline

Differentiation strategy
To achieve a…