Chapter 5 Notes
Competitive Advantage and Firm Performance
Three components are critical to evaluating any good or service:
value (V), price (P), and cost (C).
In economics, cost includes opportunity cost.
Economic value created is the d
Chapter 9 Notes
Corporate Strategy: Acquisitions, Alliances, and Networks
Merger: the joining of two independent companies to form a combined entity.
Acquisition: the purchase or (hostile) takeover of one company by another.
Chapter 10 Notes
Global Strategy: Competing Around the World
Globalization involves closer integration and exchange between different countries
and peoples worldwide, made possible by factors such as falling trade and investment
Chapter 6 Notes
Business Strategy: Differentiation, Cost Leadership, and Integration
Business-level strategy: the actions managers take in their quest for competitive
advantage when competing in a single product market.
Chapter 8 Notes
Corporate Strategy: Vertical Integration and Diversification
Business strategy addresses how to compete
Corporate strategy addresses where to compete
Corporate strategy concerns the scope of the firm along three dimension
1. _ is created when a customer is willing to pay more for a good or service than it costs the firm
to produce it.
A. Economic value
B. Product value
C. Consumer value
D. Economic advantage
2. From an economic value created perspective, the volume of a fi
Chapter 6 Discussion questions
1. What are some drawbacks and risks to a broad generic business strategy? To a
To a broad generic business strategy, its focus of competition tends to be on
Chapter 7 Notes
Business Strategy: Innovation and Strategic Entrepreneurship
Continuous innovation is the engine behind successful companies.
Innovation: The commercialization of any new product, process, or idea, or the
Chapter 4 Notes
Internal Analysis: Resources, Capabilities, and Activities
Core competencies: unique strengths embedded deep within a firm.
Core competencies are unique, deeply embedded, firm-specific strengths that
allow firms to differ
Chapter 3 Notes
External Analysis: Industry Structure,
Competitive Forces and Strategic Groups
The PESTEL Framework: a framework that categorizes and analyzes an important set of
external forces (political, economic, technological, ecolo
Chapter 2 Notes
The Strategic Management Process
Chapter 2 focus on how firms and other organizations define their vision, mission, and
values and then translate them into strategic intent and plans.
Strategic management process: the met
Chapter 3 Group Exercises 2
1. How should managers of a textbook-publishing company respond to such
The managers should try to provide e-version of their textbooks to quickly
respond to the changes. Offering e-version of the tex
Group Exercises 1
1. How is NASA including its mission and values in its strategic planning to make
its goals become reality?
First, they clearly identified their mission statement, which is to pioneer the
future in space exploration, sc