Strategic Management Study Guide
Strategic Management Study Guide BUAD 4890
Popular in Strategic Management
Popular in BUAD
This 5 page Study Guide was uploaded by Anna Notetaker on Friday September 16, 2016. The Study Guide belongs to BUAD 4890 at Middle Tennessee State University taught by Richard Mpoyi in Fall 2016. Since its upload, it has received 21 views. For similar materials see Strategic Management in BUAD at Middle Tennessee State University.
Reviews for Strategic Management Study Guide
Report this Material
What is Karma?
Karma is the currency of StudySoup.
You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!
Date Created: 09/16/16
Strategic Management Study Guide 1. Strategic Management a. Strategic Vs. Strategic Management i. Strategy: game plan, any topic to help achieve a goal. ii. Strategic Management: establish a competitive advantage, enhance financial performance. b. Strategic Management Vs. Management i. Management: an individual interactions in a business. ii. Strategic Management: a firm’s view from the eyes of the CEO, a company’s interaction in a business. 2. Competitive Advantage a. Better than Rivals b. Meets the Market’s Needs 3. Sustainable Competitive Advantage a. Valuable b. Rare c. Difficult to Imitate d. Non-substitutional 4. Business Model a. Plan for generating revenue sufficiently to cover the cost and the production of attractive profits. 5. Strategy Hierarchy a. Corporate – multiple business units, managing portfolio. i. This will make up 10% of our lectures b. Business – single business unit, how to compete. i. This will make up 70% of our lectures c. Functional – head of functional departments, execute strategy. i. This will make up 20% of our lectures d. Operating – policies and procedures of everyday tasks i. This will make 0% of our lectures Chapter 2 1. Industry Vs. General a. Industry – Supplies, Customers b. General – Regulatory, Technology, Natural, Political, Demographics, Economy 2. Five Forces Model: Rivalry, B.P. of Supplies, B.P. of Buyers, Threat of New Entry, Threat of Substitutes. a. Slow Demand -> Rivalry More Intense b. Barriers High -> Threat Low c. Rapid -> Threat High d. Threats: Readily Available, Attractive Price, and Sufficient Quality i. Example is Airplanes and Automobiles 3. Strategic Group Map a. Define, Construct, Lessons b. Depiction of Competitive Space that firms within an industry’s occupy. c. Two Key attributes: Non-coordinating and Continuous i. Learn who is firmly entrenched ii. Waffling the strategy iii. Blue ocean opportunities (unexplored) 4. Driving Forces: External and Environmental a. Changes b. Response to all Firms 5. Key Success Factors a. Competitive Capabilities that “Will be” key determinants of success or failure in the future. Resource Model: Process of converting resources into a competitive advantage. Resources -> Capabilities -> Competencies -> Core Competence Every Firm has these, but what makes them stand apart is the following: Competitive Advantage Better than Rivals Meets Market Needs Sustainable Competitive Advantage Valuable Rare Difficult to Imitate Non-substitutional Value Chain Analysis: Minimum cost of going from raw materials to delivered goods to customers. Benchmarking: comparing self to standard Industry Average Industry Leader Strategic Group SWOT Analysis: Strength, Weakness, Opportunity, Threat Strategic Concerns Shoot for 5 in this category Five most important things to address to a company Concerns Recommendations (3): Good, Better, Best Specific and actionable Financial Analysis 5 key ratios for the past five years GPM = Gross Profit Margin (Sales – CGS/Sales) OPM = Opportunity Profit Margin (GPM – Operating Expense/Sales) NPM = Net Profit Margin (OPM – All other Expenses/Sales) ROA = (Net Income/Total Assets) ROE = (Net Income/Total Equity) 1. Focus Low Cost – carved out a group to pursue. Example: Sam’s Choice -> targets families and businesses. Broad Low cost – all and many varieties. Example: Walmart -> all types of individuals. Focus Differentiation – add value and set self apart. Broad Differentiation 2. Low Cost: (+) Perform a value chain activity more efficiently (+) eliminate a step in the value chain (-) too fixated on cost, ignores market shifts (-) cut too much 3. Differentiation: (+) features that reduce the buy the buyer’s cost of using (pruis) (+) tangible features (+) intangible features (+) signal the value (-) differentiate in ways easy to copy (-) differentiators have an external focus and can lose sight of costs (-) adds bell and whistles that does not drive sales 4. Integrated: (+) complete on price or quality (one constant) (-) difficult to sustain (-) stuck in the middle Chapter 5: 1. Production: Economies of Scales: reductions in unit cost attributed to larger outputs. Economies of Scope: fixed set of assets that has broaden the scope of business. Cost Advantage that results when firms provide a variety of products rather than specializing in just one. Learning Curve Effects: cost savings that come from learning by doing. Experience Curve Effects: cost savings that naturally occur over time. Life cycle of Products. 2. Marketing: Customer Defection Rate: % of customers that goes to a competitor. Customer Acquistion Cost: how much does it cost to get a brand new customer to buy a product or service. 3. Supply Chain: Supply Chain Management: managing flows of inputs to the production process in order to minimize inventory holding cost and maximize inventory turnover. Pay For Performance: good pay will increase work ethics – works only up to a certain point in a company. Six Sigma Quality Control: reducing waste and defective products to almost zero.
Are you sure you want to buy this material for
You're already Subscribed!
Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'