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Summary Strategic Management

Course
- Strategic Management
- -
- 2019 - 2020
- Erasmus Universiteit Rotterdam (Erasmus Universiteit Rotterdam, Rotterdam)
- International Business Administration
215 Flashcards & Notes
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A snapshot of the summary - Strategic Management

  • Chapter 1

  • What are the characteristics of the 'strategy as a plan' view?
    1. Strategy is viewed as as a conscious and rational course of action that is based on a clear mission & objective. 
    2. Implies having loads of data to be analysed to decide on investments
  • What are the characteristics of the 'strategy as a pattern' view?
    1. Strategy vs viewed as partly conscious and purposeful, and partly random 
    2. Firm has clear mission & objective, but more flexible with changing it to adapt to new circumstances  
    3. Formulation and implementation may differ
  • What are the characteristics of the 'strategy as a position' view?
    1. Strategy is viewed as a positioning decision on where and how to compete
    2. It implies selecting a niche market and defending the position smartly
  • What are the characteristics of the 'strategy as a perspective' view?
    1. Strategy is viewed as creating an identity for the firm, as it affects learning
    2. Seen identically by everyone and can be managed in response to changes in context
  • What are the steps of the I/O model?
    1. External environment - Study the environment (especially industry one)
    2. An attractive industry - Locate an industry with high potential for above-average returns 
    3. Strategy formulation - Identify the strategy called for by the attractive industry to earn above-average returns
    4. Assets and skills - Develop or acquire assets and skills needed to implement strategy
    5. Strategy implementation -  Use the firm's strengths  (developed assets and skills) to implement the strategy
  • What are the steps of the resource model?
    1. Resources - Identify the firm's resources. Study its strengths and weaknesses compared with those of competitors
    2. Capability - Determine firm's capabilities, what do they allow the firm to do better than its competitors 
    3. Competitive advantage - Determine the potential of the firm's resources and capabilities in terms of a competitive advantage
    4. An attractive industry - Locate an attractive industry
    5. Strategy formulation and implementation - Select strategy that best allows firm to utilise its resources and capabilities relative to opportunities in external environment
  • Chapter 2

  • What are the 3 layers of the environment?
    1. Micro-environment - parties directly linked to company. E.g. customers and creditors
    2. Industry environment - parties connected to the industry. E.g. competitors, buyers, suppliers, etc.
    3. Macro environment - comprised of social, economic, political and technological dynamics.
  • What are the segments of the industry environment dimension?
    1. Demographic - concerned with population's size, age, etc. 
    2. Economic - nature and direction of the economy in which a firm competes
    3. Physical - refers to changes in the physical environment
    4. Sociocultural - concerned with society's attitude and cultural values
  • What are the segments of the competitor environment segments?
    1. Global - includes relevant new global markets and changes in the existing ones
    2. Technological - includes the institutions and activities involved with creating new knowledge and translating that knowledge into new outputs  
    3. Political/legal - concerned with the legal boundaries of a firm when competing for political attention for resources
  • What is the 6th force that has been identified in the Porter model?
    Complements.
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