- Define strategic management. How does it differ from strategic planning?

- Define the terms Strategy, competitive advantage and above average rate of return.

- Identify and discuss two major drivers of competitive landscape. - Explain the meaning of Disruptive Innovation and its impact on strategic management.

- Identify and discuss the two major theories of competitive advantage. What are their key assumptions and arguments?\

- Name the three types of stakeholders in businesses. What are the characteristics of each?

- Define a vision statement. What is a distinguishing characteristic of a vision statement?

- Define a mission statement. What are the benefits of having a strong mission statement?

Chapter 2: The External Environment * You should be able to:

- Explain the two principal objectives of external environmental analysis.

- Name the three categories of firms external environment.

- Identify the seven dimensions of the general external environment. Give examples of each.

- Discuss the four activities of the external environmental analysis

- List and discuss Porters five forces industry analysis. What is the goal of the analysis?

- Discuss the meaning and types of entry barriers in industries.

Chapter 3: The Internal Organization * You should be able to:

- Define and distinguish among resources, capabilities and core competence.

- Outline the four characteristics of resources that lead to sustainable competitive advantage according to RBV. \

- Define the meaning and outcome of value chain analysis.

- Explain the three reasons why some resources and capabilities are difficult to imitate.

- Discuss the definition and outcomes of Business Process Outsourcing (BPO).

KEY TERMS & CONCEPTS

COMPETITIVE ADVANTAGE

SUSTAINABLE COMPETITIVE ADVANTAGE

VISION & MISSION STATEMENTS

INDUSTRIAL/ORGANIZATION VIEW (I/O)

ECONOMIES OF SCALE

SWITCHING COST

BACKWARD AND FORWARD INTEGRATION

STAKEHOLDERS

VALUE CHAIN ANALYSIS

RESOURCE-BASED VIEW (RBV) OF THE FIRM