Key Terms
Strategy
A comprehensive plan to achieve long-term goals in the face of social, political, economic, and competitive conditions.
Competitors
Firms that provide similar products or services and try to attract the same customers; typically share similar goals aro
Strategic management
The process of integrating all functions and activities of an organization into a coherent whole. Provides the "glue" th
Synergy
When the pieces of an organization support each other so that total output exceeds the sum of individual outputs. A dire
Competitive advantage
The condition in which a business outperforms rivals because customers prefer its products or services. Happens when cus
Sustainable competitive advantage
Competitive advantage created in ways that are difficult or costly for competitors to copy.
Value proposition
A statement a company uses to convince customers that its product or service provides more value than a competitor's. Co
Delivered through
Webpage, advertising, or social media. Should include a bold headline or graphic depicting customer benefits, followed b
Organizational culture
The shared values and beliefs that guide individual behaviors in an organization. Managers build culture by communicatin
Industry analysis
A method for a company to assess its market position relative to competitors; reviews market and financial factors to he
Environmental scanning
An ongoing, high-level, broad-based process of gathering, analyzing, and dispensing information for the purpose of devel
Goal
Influence public opinion, public policy, and company behavior.
PESTEL
An organizing framework that allows decision makers to understand and make connections with a mass of external environme
Developed by
J.B. Barney.
Purpose
Analyze internal resources and capabilities to determine whether they can sustain competitive advantage.