strat chap 6-7

• resources - assets such as cash, buildings, or intellectual property
• capabilities - organizational and managerial skills necessary to orchestrate a diverse set of resources
• activities - enable firms to add value by transforming inputs into goods or services
• strategic choices - find their expression in firm activities, which leverage core competencies for competitive advantage
• tangible resources - have physical attributes and are visible
• give examples of tangible resources?

  capital

  land

  buildings

  plant

  equipment

  supplies
• intangible resources - have no physical attributes and thus are invisible
• give examples of intangible resources?

  culture

  knowledge

  brand equity

  reputation

  intellectual property
• competitive advantage - is more likely to spring from intangible rather than tangible resources
• value chain - describes the internal activities a firm engages in when transforming inputs into outputs
• primary activities - add value directly as the firm transforms inputs into outputs
• support activities - add value indirectly
• strategic activity system - conceives of a firm as a network of interconnected activities
• core competencies - are unique strengths, embedded deep within a firm, that allow a firm to differentiate its products and sources from those of its rivals
• path dependence - describes a process in which the options one faces in a current situation are limited by decisions made in the past
• casual ambiguity - the cause and effect of a phenomenon are not readily apparent
• social complexity - different social and business systems interact with one another
• strategic planning - an organizational management activity that is used to set priorities, focus energy and resources, strengthen operations
• strategic plan - document used to communicate with the organization the organization goals
• business plan - setting short or midterm goals and defining the steps necessary to achieve them
• effective strategy development - requires a shift in focus from day to day concerns to the broader and lo ger term business options
• where is your business now - understanding as much about your business as possible
• where do you want to take it? set out your top level objectives
• what do you need to get there - changes will you need to make to deliver on your strategic objectives
• helps formulate better strategies using a logical, systematic approach - often the most important benefit
• enhances communication between employers and employees - communication is crucial to the success of the strategic planning process
• empowers individuals working in the organization - the increased dialogue and communication across all stages of the process strengthens employees’ sense of effectiveness and importance
• who to involve - try to find people who show the kind of analytical skills that successful strategic planning depends upon
• how to structure the process - there is no right or wrong way to plan the process of strategic planning
• getting the planning document right - it important to get the process right
• strategic planning process - requires considerable thought and planning on the part of the company’s upper level management
• analysis - there are no constantly right answers, but there are constantly right questions; the best answers will change over time
• strategy formulation and planning - a company will first assess its current situation by performing an internal and external audit
• define your purpose - summarize where you are now, where you want to be and how you will change
• explain your advantage - people will want to understand how the business will succeed and what success will look like
• set the strategy’s boundaries - be clear about which products and markets you will deal in
• prioritize - emphasize the most profitable or significant products, customers, and markets
• budget - recognizing the financial requirements of a strategy is fundamental to its success
• strategy implementation - after a strategy is formulated, the company needs to establish specific targets or goals related to putting the strategy into action
• integrating the strategy - the strategy needs to take account of the realities of the business