SEVI 30103 EXAM 1 STUDY GUIDE
Firm - Answers - Business entity working toward the production and sale of a set of
products and/or services.
Market - Answers - Exists wherever an economic transaction between two individuals,
groups, or firms is taking place.
Distinguishing between different markets - Answers - - Geography
- Customers
- Production
- Characteristics
Industry - Answers - CLuster of related markets
EX: Manufacturing, automotive
Value creation - Answers - Providing goods or services that consumers value more
highly than those of its competitors or that are close to competitors' at a lower price.
Value capture - Answers - The amount of value create by a firm that it gets to keep as
profit.
EX: Value created - Cost = Value Capture
Strategy - Answers - System of goal-directed actions to gain and sustain superior
performance relative to competitors.
Where do we compete?
What unique value do we bring?
What resources/capabilities so we utilize?
How do we sustain value?
Strategy is NOT... - Answers - - Goals and objectives
- Introspective algorithmic decision making
- Operational effectiveness, competitive benchmarking, or tactical tools
What three elements is good strategy based on? - Answers - - A diagnosis of the
competitive challenge
- A guiding policy to address the competitive challenge
- A set of coherent actions to implement the firm's guiding policy
Competitive advantage - Answers - Superior performance relative to other competitors
in the same industry
Sustainable competitive advantage - Answers - Outperforming competitors or the
industry average over a prolonged period
, Competitive disadvantage - Answers - Inferior performance relative to other competitors
in the same industry
Competitive parity - Answers - Performance at the same level as competitor in the same
industry
Strategic position - Answers - The identity of the firm in terms of the way in which it
creates and captures value
Strategic fit - Answers - The way in which the activities, resources, and capabilities of a
firm work together to execute its strategy
External Stakeholders - Answers - - Customers
- Suppliers
- Alliance Partners
- Creditors
- Unions
- Communities
- Governments
- Media
Internal Stakeholders - Answers - - Employees
- Stockholders
- Board Members
Stakeholder Strategy - Answers - An integrative approach to managing a diverse set of
stakeholders to gain and sustain competitive advantage
Stakeholder Impact Analysis - Answers - 1. Who are our stakeholders?
2. What are our stakeholders' interests and claims?
3. What opportunities and threats do our stakeholders present?
4. What economic, legal, ethical, and philanthropic responsibilities do we have to our
stakeholders?
5. What should we do to effectively address the stakeholder concerns?
Stakeholder Attributes - Answers - - Power
- Legitimacy
- Urgency
Power - Answers - When the stakeholder can get the company to do something that it
would not otherwise do
Legitimacy - Answers - Perceived to be legally valid or otherwise appropriate
Urgency - Answers - Require a company's immediate attention and response
Firm - Answers - Business entity working toward the production and sale of a set of
products and/or services.
Market - Answers - Exists wherever an economic transaction between two individuals,
groups, or firms is taking place.
Distinguishing between different markets - Answers - - Geography
- Customers
- Production
- Characteristics
Industry - Answers - CLuster of related markets
EX: Manufacturing, automotive
Value creation - Answers - Providing goods or services that consumers value more
highly than those of its competitors or that are close to competitors' at a lower price.
Value capture - Answers - The amount of value create by a firm that it gets to keep as
profit.
EX: Value created - Cost = Value Capture
Strategy - Answers - System of goal-directed actions to gain and sustain superior
performance relative to competitors.
Where do we compete?
What unique value do we bring?
What resources/capabilities so we utilize?
How do we sustain value?
Strategy is NOT... - Answers - - Goals and objectives
- Introspective algorithmic decision making
- Operational effectiveness, competitive benchmarking, or tactical tools
What three elements is good strategy based on? - Answers - - A diagnosis of the
competitive challenge
- A guiding policy to address the competitive challenge
- A set of coherent actions to implement the firm's guiding policy
Competitive advantage - Answers - Superior performance relative to other competitors
in the same industry
Sustainable competitive advantage - Answers - Outperforming competitors or the
industry average over a prolonged period
, Competitive disadvantage - Answers - Inferior performance relative to other competitors
in the same industry
Competitive parity - Answers - Performance at the same level as competitor in the same
industry
Strategic position - Answers - The identity of the firm in terms of the way in which it
creates and captures value
Strategic fit - Answers - The way in which the activities, resources, and capabilities of a
firm work together to execute its strategy
External Stakeholders - Answers - - Customers
- Suppliers
- Alliance Partners
- Creditors
- Unions
- Communities
- Governments
- Media
Internal Stakeholders - Answers - - Employees
- Stockholders
- Board Members
Stakeholder Strategy - Answers - An integrative approach to managing a diverse set of
stakeholders to gain and sustain competitive advantage
Stakeholder Impact Analysis - Answers - 1. Who are our stakeholders?
2. What are our stakeholders' interests and claims?
3. What opportunities and threats do our stakeholders present?
4. What economic, legal, ethical, and philanthropic responsibilities do we have to our
stakeholders?
5. What should we do to effectively address the stakeholder concerns?
Stakeholder Attributes - Answers - - Power
- Legitimacy
- Urgency
Power - Answers - When the stakeholder can get the company to do something that it
would not otherwise do
Legitimacy - Answers - Perceived to be legally valid or otherwise appropriate
Urgency - Answers - Require a company's immediate attention and response
