Strategic management 2
Terms
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- Above average returns
- Return on an investment that is higher than would be expected on average on an investment with similar ammount of risk.
- Sustainable competetive advantage
- Capabilities that allow a company to earn above average returns and are hard for the competitors to copy are the source.
- VRIOS
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Valuable
Rare
Inimitable
Organizational - effectively exploitable by the organization in question
A tool for evaluating the potential of a competency for becoming a source of sustainable competetive advantage.
Strategically significant - Should not be specific to one product but to allow access to wide markets. - Core competency
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One thing that a company can do better than competition.
Intentional harmonized combination of key capabilities. - Capability
- Effective utilization of a set of resources to perform a task.
- Strategic intent
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Description of the means by which the organization will work towards it's vision.
Tool for communicating to employees and key business partners the intentions of the organization. - Strategic mission
- Communication of the the companys vision of what it aims to be.
- profit pool
- Total profits earned within an industry sector.
- Resource based model for above average returns
- Above average returns are earned when companys strategy is based on utilization of it's internal resources and capabilites.
- Industrial organization model of above avertage returns
- Above average returns are earned when a firm implements a strategy that is formulated based on analysis of the external environment and choosing an attractive industry based on this.