What Is Strategy

1. What is strategy? An integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage. 2. Describe the strategic management process! Study the external and internal environments Identify marketplace opportunities and threats Determine how to use core competencies Use strategic intent to leverage resources, capabilities and core competencies and win competitive battles Integrate formulation and implementation of strategies Seek feedback to improve strategies 3. List the 5 forces of the five forces model of competition! ● ● ● ● ● Suppliers Buyers Competitive rivalry among firms currently in the industry Product substitutes Potential entrants to the industry

4. What does vision mean? A picture of what the firm wants to be and, in broad terms, what it wants to ultimately achieve. 5. Who are the stakeholders of a firm? Give some examples too! Individuals and groups who can affect, and are affected by, the strategic outcomes achieved and who have enforceable claims on a firm’s performance. E.g. shareholders, suppliers of capital, customers, suppliers, host communities, unions, employees, managers. 6. List the dimensions of the general environment of a firm! Economic Sociocultural Global Technological Political/legal Demographic 7. Define industry!

A group of firms producing products that are close substitutes. 8. List at least 5 barriers to entry for new entrants to an industry! ● ● ● ● ● ● ● ● Economies of scale Product differentiation Capital requirements Switching costs Access to distribution channels Cost disadvantages independent of scale Government policy Expected retaliation

9. What does strategic group mean? A set of firms emphasizing similar strategic dimensions and using similar strategies 10. What are the levels of external environment analysis? ● ● ● General environment Industry environment Competitor environment

11. Describe the bargaining power of suppliers! Means of suppliers...