Documentos de Académico
Documentos de Profesional
Documentos de Cultura
McGraw-Hill/Irwin
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LO 1-1 Define competitive advantage, sustainable competitive advantage, competitive disadvantage, and competitive parity. LO 1-2 Define strategy and explain its role in a firms quest for competitive advantage. LO 1-3 Explain the role of firm effects and industry effects in determining firm performance.
LO 1-4 Describe the role of corporate, business, and functional managers in strategy formulation and implementation.
LO 1-5 Outline how business models put strategy into action. LO 1-6 Describe and assess the opportunities and challenges managers face in the 21st century. LO 1-7 Critically evaluate the role that different stakeholders play in the firms quest for competitive advantage.
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What Is Strategy?
Goal-directed actions to gain and sustain competitive
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Palm Video
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LO 1-1 Define competitive advantage, sustainable competitive advantage, competitive disadvantage, and competitive parity. LO 1-2 Define strategy and explain its role in a firms quest for competitive advantage. LO 1-3 Explain the role of firm effects and industry effects in determining firm performance.
LO 1-4 Describe the role of corporate, business, and functional managers in strategy formulation and implementation.
LO 1-5 Outline how business models put strategy into action. LO 1-6 Describe and assess the opportunities and challenges managers face in the 21st century. LO 1-7 Critically evaluate the role that different stakeholders play in the firms quest for competitive advantage.
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EXHIBIT 1.1
Industry vs. Firm Effects in Performance Astute managers create superior performance Making important trade-offs - Toyotas lean manufacturing
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EXHIBIT 1.2
What Is Strategy?
Operational effectiveness
Enterprise Resource
Planning (ERP) Benchmarking Six Sigma Necessary but not sufficient such as Lean Manufacture
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CORPORATE STRATEGY
How to Compete?
Should GE jet engines
How to Implement?
Should GE human
EXHIBIT 1.3
Strategy Formulation and Implementation Across Levels: Corporate, Business, and Functional Strategy
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BUSINESS MODELS:
PUTTING STRATEGY INTO ACTION
Razor-blade model Subscription model
How is the firm going to make money to continue operations? Whats happening now between Microsoft & Google?
Business models in opposite directions
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EXHIBIT 1.4
Microsoft
Operating Systems
Software Apps
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1) Is Microsoft in trouble or is this sales downturn just a result of the recession? Should they change any strategies? 2) 97% of Googles revenues is from advertising. Is this a problem? Should they change any strategies?
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EXHIBIT 1.5
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GREEN ECONOMY
WEB 2.0
EXHIBIT 1.7
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Shirt designs are submitted by the community Designs are voted on by the online community Only winning designs are produced & sold
LO 1-1 Define competitive advantage, sustainable competitive advantage, competitive disadvantage, and competitive parity. LO 1-2 Define strategy and explain its role in a firms quest for competitive advantage. LO 1-3 Explain the role of firm effects and industry effects in determining firm performance.
LO 1-4 Describe the role of corporate, business, and functional managers in strategy formulation and implementation.
LO 1-5 Outline how business models put strategy into action. LO 1-6 Describe and assess the opportunities and challenges managers face in the 21st century. LO 1-7 Critically evaluate the role that different stakeholders play in the firms quest for competitive advantage.
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STAKEHOLDERS
Successful business generates societal value Stakeholders are affected by firms actions
Internal External
Vary by industry
Autos Investment banking
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Chapters 1 thru 5
Formulate (F)
Business and Corporate Strategy
Chapters 6 thru 10
Implement (I)
Organizational Design & Corporate Governance
Chapters 11 thru 12
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Exhibit 1.9
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Take-Away Concepts
LO 1-1 Define competitive advantage, sustainable competitive advantage, competitive disadvantage, and competitive parity. Competitive advantage is relative rather than absolute. To obtain a competitive advantage, a firm must either create more value for customers while keeping its cost comparable to competitors, or it must provide value equivalent to competitors but at a lower cost. A firm dominating competitors over time has sustained competitive advantage. A firm that continuously underperforms its rivals or the industry average has a competitive disadvantage. Two or more firms that perform at the same level have competitive parity. Strategy is goal-directed actions in quest of competitive advantage.
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AFI strategy framework Bottom of the pyramid Business model Competitive advantage Competitive disadvantage Competitive parity Co-opetition Crowdsourcing Externalities
Firm effects Industry effects Stakeholders Strategic business unit (SBU) Strategic management Strategy Sustainable competitive advantage
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