Strategic Management Study Guide Rated A+

Strategy formulation, Strategy implementation, Strategy evaluation {Ans: Describe strategy development stages}Type 1 Cost Leadership - Low cost • Type 2 Cost Leadership - Best value • Type 3 Differentiation • Type 4 Focus - Low cost • Type 5 Focus - Best value {Ans: Porter's Five Generic Strategies}everything a firm does very well in comparison to rival firms. {Ans: Describe competetive advantage}Long term. Reducing the size of the firm in terms of number of employees, divisions, units, number of hierarchical levels in the organizational structure. {Ans: What is Restructuring**}• Unknown markets, industries do often not exist yet. • Create a totally new demand outside the existing industry boundaries (e.g. extending boundaries). • Potential for very profitable growth. • Competition does not matter since the rules of the game are not determined. {Ans: What is blue ocean*}Determining what needs to be done, how it will be done, and who is to do it AND Directing and motivating all involved parties and resolving conflicts {Ans: Describe strategy implementation, organizing/leading}1. Rare 2. Hard to imitate 3. Not easily substitutable {Ans: three characteristics that make resources valuable so they can contribute to sustainable competitive advantage:}Marketing can be