Strategic Management Fundamentals

From the study guide

Course Outline

  1. What strategy is and why it matters
  2. Strategy versus operational effectiveness
  3. Competitive advantage and strategic choices
  4. Strategy statement goals scope capabilities
  5. External analysis: environment and competitive forces
  6. PESTEL and industry analysis tools
  7. Internal analysis: RBV and VRIO
  8. Value chain, benchmarking and SWOT TOWS
  9. Strategic management process and SBUs
  10. Generic strategies and hybrid strategy risks
  11. Corporate strategy: vertical integration and outsourcing
  12. Diversification tests and corporate parent value

1. What strategy is and why it matters

Key Concepts & Definitions

  • Strategy: Strategy is a company’s long-term direction that sets where it wants to go and how it plans to succeed over time.
  • Long-term direction: Long-term direction is the multi-year positioning of a firm that guides major choices affecting future performance and market standing.
  • Operational decisions: Operational decisions are day-to-day choices focused on routine tasks rather than the firm’s overall future direction.
  • Effectiveness: Effectiveness is the selection of the right goals so the organization pursues objectives that fit what it truly wants to achieve.
  • Efficiency: Efficiency is the best use of resources to reduce waste and increase productivity while carrying out chosen activities.

Essential Points

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Practice quiz preview

1. What best describes strategy in a firm?

2. Why is strategy important for a firm?

3. How does operational effectiveness differ from strategy?

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Flashcard preview

Strategy — definition?

Long-term direction guiding success.

Operational decisions — focus?

Routine tasks, not overall strategy.

Effectiveness — goal?

Choosing the right objectives.

Efficiency — aim?

Optimal resource use.

Competitive advantage — what?

Superior performance over rivals.

Sustainable advantage — duration?

Long-lasting competitive edge.

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Frequently asked questions

What does the Strategic Management Fundamentals study guide cover?

It covers the core concepts of Strategic Management Fundamentals, organized by topic with the key definitions, explanations and takeaways, so it's easier to learn and remember.

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How many questions are in the Strategic Management Fundamentals quiz?

The practice quiz has 24 multiple-choice questions, each with an explanation. Use it to check what you know and find your gaps.

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How do I study Strategic Management Fundamentals with flashcards?

There are 23 flashcards on Strategic Management Fundamentals, with a question on the front and the answer on the back. Try to recall each answer before you flip, and let spaced repetition bring back the ones you miss.

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