GMS 200 Chapter Notes - Chapter 7: Bargaining Power, Vertical Integration, Swot Analysis
28 Jun 2018
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GMS Chapter 7 - Strategy and Strategic Management
Competitive advantage - the ability to do something so well that one outperforms
competitors
Cost and quality
Knowledge and speed
Barriers to entry
Financial resources
Technology
Sustainable competitive advantage - the ability to outperform rivals in ways that
are difficult or costly to imitate
If sustainable competitive advantage is the goal, then strategy is the means to its
achievement
Strategy - a comprehensive plan guiding resource allocation to achieve long term
organization goals
Strategic intent - focuses and applies organizational energies on a unifying and
compelling goal
Levels of strategy
Corporate strategy - sets long-term direction for the total enterprise
Business strategy - identifies how a division or strategies business unit will
compete in its product or service domain
Typical business strategy decisions include choices about product and
service mix, facilities locations, technologies and the like
Functional strategy - guides activities within one specific area of operations
Strategic management - the process of formulation and implementing strategies
1. Strategic analysis - the process of analyzing the organization, the
environment and the organizations competitive position and current
strategies (assess competitive position)
2. Strategy formulation - the process of crafting strategies to guide the
allocation of resources (creating strategies)
3. Strategy implementation - the process of putting strategies into action
Mission statement - expresses the organizations reason for existence in society
A clear sense of mission helps managers keep organizations on track and use
resources with strategies intent
Stakeholders - individuals and groups directly affected by the organization and its
strategic accomplishments
Strategic constituencies analysis - assess interests of stakeholders and how well
the organization is responding to them
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Document Summary
Gms chapter 7 - strategy and strategic management. Competitive advantage - the ability to do something so well that one outperforms competitors. Sustainable competitive advantage - the ability to outperform rivals in ways that are difficult or costly to imitate. If sustainable competitive advantage is the goal, then strategy is the means to its achievement. Strategy - a comprehensive plan guiding resource allocation to achieve long term organization goals. Strategic intent - focuses and applies organizational energies on a unifying and compelling goal. Corporate strategy - sets long-term direction for the total enterprise. Business strategy - identifies how a division or strategies business unit will compete in its product or service domain. Typical business strategy decisions include choices about product and service mix, facilities locations, technologies and the like. Functional strategy - guides activities within one specific area of operations. Mission statement - expresses the organizations reason for existence in society.
