MGMT 4000 Study Guide - Midterm Guide: Lemonade, Granola, Iced Tea

• School: University of Guelph
• Department: Management
• Course: MGMT 4000
• Professor: Trent Tucker

Document Summary

Strategy set of related actions that managers take to increase their company"s performance. Strategic leadership creating competitive advantage through effective management of the strategy-making process. Strategy formulation selecting strategies base don analysis of an organization"s external and internal environment. Risk capital equity capital for which there is no guarantee that stockholders will ever recoup their investment or earn a decent return. Shareholder value returns that shareholders earn from purchasing shares of a company. Profitability the return a company makes on the capital invested in the enterprise. Profit growth increase in net profit over time. Competitive advantage achieved advantage over rivals when a company"s profitability is greater than the average profitability of firms in the industry. Sustained competitive advantage a company"s strategies enables it to maintain above-average profitability for a number of years. Business model conception of how strategies should work together as a whole to enable the company to achieve competitive advantage.