Review for Midterm: Important Concepts/Tools

When you are reviewing the following concepts/tools, ask yourself the questions: “what does it mean?” “Does it closely relate to other concepts?” “How may I explain it to my managers and/or subordinates and/or my friends?”

1. Strategy
2. Strategic management process
3. Cognitive bias in decision making
4. Stakeholders
5. Vision/mission statement
6. Corporate governance mechanisms
7. Five forces model
8. Strategic group
9. Industry life cycle
10. Competitive advantage
11. Four generic building blocks (Efficiency, Quality, Innovation, Customer Response)
12. Distinctive (or core) competency, resources and capabilities
13. Durability or sustainability of competitive advantage
14. SWOT Analysis
15. Economies of scale
16. Experience curve
17. Functional level strategies
18. Three generic business strategies
19. Business strategies corresponding to industry life cycle
20. Strategies for profiting from innovation