Midterm

Study guide:

Chapter 1 Introduction to Strategy

Understand the purpose of Strategy…what is your definition.

Identify the three components that make up a GOOD strategy and how they relate to the AFI model

Understand what it means to have a competitive advantage and how to make it sustainable

Understand the differences between vision, mission and values. What purpose do they each serve?

Chapter 2 Strategic Leadership

Understand the importance of Stakeholders. Be able to describe the differences between internal and external stakeholders.

Understand who makes decisions on where to compete, how to compete and how to implement. What are the components in a business strategy? Corporate/Business/Functional

Chapter 3 External Analysis

Understand a firm’s macro-environment using the PESTEL model. Be able to provide an example of each of the components.

Understand a firm’s profit potential within an industry by using Porter’s Five Forces model that shape competition: (1) threat of entry, (2) power of suppliers, (3) power of buyers, (4) threat of substitutes, and (5) rivalry among existing competitors.

Explain how competitive industry structure shapes rivalry among competitors. Perfect, Monopolistic Competition, Oligopoly and Monopoly

Understand the purpose of Strategic Group Mapping

Chapter 4 Internal Analysis

What is a core competency?

Understand the VRIO model. How does it help you identify your product or service against competitors

Differentiate among a firm’s resources, capabilities, core competencies, and activities.

Compare and contrast tangible and intangible resources

Be able to conduct a SWOT analysis to combine external and internal analysis and derive strategic implications

Chapter 5 Competitive Advantage, Firm Performance, Business Models

Understand the three traditional frameworks used to determine a firms performance. And what metrics are used for measurement?

Understand the balanced scorecard tool managers use to develop strategic objectives. What are the four key questions asked? What specific areas are you looking?

Understand the Triple Bottom Line and its three dimensions—economic, social, and ecological, (profits, people, planet). How does TBL lead to a sustainable strategy?.

Understand the translation of a firm’s strategy (where and how to compete for competitive advantage) into action takes place in the firm’s business model (how to make money)

Identify common business models: razor– razor-blade, subscription-based, pay-as-you-go, and freemium.

Chapter 6 Business Level Strategy

Define business-level strategy and describe how it determines a firm’s strategic position. Differentiation and cost leadership are two distinct strategic positions. Value Innovation or Integration is a third strategic position and explain why it is so hard to succeed.

Understand the differences between a differentiation strategy and a cost leadership strategy. And be able to identify value drivers and cost drivers. Examine the relationship between value drivers and differentiation strategy. Examine the relationship between cost drivers and the cost-leadership strategy.

Understand what a Blue Oceans strategy entails.