Strategy Notes

Strategy Notes

1. Operational Effectiveness- OE means performing similar activities better than rivals perform them.

Strategic Advantage- It refers to any no. of practices that allow the company to better utilize its inputs by developing better products faster.

1. Strategic Positioning- Performing different activities from rivals or performing similar activities in different ways.

Strategic Advantage- The essence of strategic positioning is to choose activities that are not different from the rivals.

1. Straddling- A straddle seeks to match the benefits of a successful position while maintaining its existing position.

Strategic Advantage- Continuing two different business model at the same time may fail.

1. Strategic Plan- It includes vision objectives and formulation and it lays company’s future direction, performance targets and strategy.

Strategic Advantage- Helps in understanding expected action of industry’s key players and the challenges and issues that stand as obstacle to company’s success.

1. Balance Scorecard- It as a comprehensive set of measures customized for a company on overall company performance with respect to stakeholder’s perspectives.

Strategic Advantage- The BSC approach for measuring company’s performance requires both financial and strategic objectives and tracking their achievements

1. Value Chain- It is a chain of primary and secondary activities that a firm operating in a specific industry performs in order to deliver a valuable product. Competitive advantage cannot be understood by looking at a firm as a whole. It stems from many discrete activities, a firm performs in designing, producing, marketing, delivering and supporting its products. Each of these activities can contribute to a firm’s relative position and create a basis for differentiation.

Strategic Advantage- The value chain disintegrates a firm into its strategically relevant activities in order to understand the behavior of costs and existing and potential sources of differentiation.

1. Strategic Intent- Any company’s ambitious strategic objectives which a company pursues concentrating the full force of its resources and competitive actions on achieving that objective.

Strategic Advantage- Firms focusses on resource management. A company’s strategic intent can entail unseating the existing industry leader, becoming the dominant market share leader or delivering the best customer service of any company in the industry.