All About Strategy
Strategy: Basic Concepts & Key Terminologies
I. Strategic Inputs
Chapter 1: Strategic Management
Strategic competitiveness is achieved when an organization successfully conceives, formulates and implements a value-creating strategy.
A strategy is an integrated and coordinated set of commitments and action designed to exploit core competencies and gain a competitive advantage.
An organization has a competitive advantage (CA) when it implements a strategy competitors are unable to duplicate or find too costly to try to imitate.
Above-average returns (AAR) are returns in excess of what an investor expects to earn from other investments with a similar amount of risk.
Note: The 2 models of above-average returns to conceive vision and mission • Industrial organizational (I/O) model (mainly external focusing: external environment -> attractive industry -> strategy formulation -> assets & skills -> strategy implementation -> AAR) • Resource-based model (internal focusing: resources -> capability -> CA -> attractive industry -> strategy formulation & implementation -> AAR)
Risk is an investor’s uncertainty about the economic gains or losses that will result from a particular investment.
Average returns are returns equal to those an investor expects to earn from other investments with a similar amount of risk.
Note: • Returns are normally measured in terms of accounting figures such as return of assets, return of equity, and return of sales.
The strategic management process (SMP) is the full set of commitments, decisions and actions required for an organization to achieve strategic competitiveness (value creating ability) and earn above-average returns.
Hypercompetition is the term that captures the realities of the current competitive landscape which is inherently instable and rapidly changing (- escalating price-quality positioning, creating new knowledge, establishing first-mover advantage,
I. Strategic Inputs
Chapter 1: Strategic Management
Strategic competitiveness is achieved when an organization successfully conceives, formulates and implements a value-creating strategy.
A strategy is an integrated and coordinated set of commitments and action designed to exploit core competencies and gain a competitive advantage.
An organization has a competitive advantage (CA) when it implements a strategy competitors are unable to duplicate or find too costly to try to imitate.
Above-average returns (AAR) are returns in excess of what an investor expects to earn from other investments with a similar amount of risk.
Note: The 2 models of above-average returns to conceive vision and mission • Industrial organizational (I/O) model (mainly external focusing: external environment -> attractive industry -> strategy formulation -> assets & skills -> strategy implementation -> AAR) • Resource-based model (internal focusing: resources -> capability -> CA -> attractive industry -> strategy formulation & implementation -> AAR)
Risk is an investor’s uncertainty about the economic gains or losses that will result from a particular investment.
Average returns are returns equal to those an investor expects to earn from other investments with a similar amount of risk.
Note: • Returns are normally measured in terms of accounting figures such as return of assets, return of equity, and return of sales.
The strategic management process (SMP) is the full set of commitments, decisions and actions required for an organization to achieve strategic competitiveness (value creating ability) and earn above-average returns.
Hypercompetition is the term that captures the realities of the current competitive landscape which is inherently instable and rapidly changing (- escalating price-quality positioning, creating new knowledge, establishing first-mover advantage,