Documenti di Didattica
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McGraw-Hill/Irwin
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PageRank algorithm a clear improvement Today, it is worlds leading online search/advertising firm
What Is Strategy?
Goal-directed actions to gain and sustain competitive
advantage
NOT a zero-sum game
Win win scenarios co-opetition JCPenney vs. Neiman Marcus Southwest Airlines vs. Delta Song
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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.
iPhone a huge success in 2009 Sam Waltons assumptions about low prices & high
volume
Auto industry differences between U.S. & Japan
Palm Video
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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?
It is about creating value while containing cost. It is about deciding what to do, and what not to do. It combines a set of activities to stake out a unique position. It requires long-term commitments that are often not easily reversible.
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WalMart
Jamesway
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Operational effectiveness
Enterprise Resource
Planning (ERP)
Benchmarking Six Sigma Necessary but not
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V P
V P
C C
Over time, firms with different operational effectiveness are able to accumulate more resources
EXHIBIT 1.3
Strategy Formulation and Implementation Across Levels: Corporate, Business, and Functional Strategy
CORPORATE STRATEGY
How to Compete?
Should GE jet engines
How to Implement?
Should GE human
BUSINESS MODELS:
PUTTING STRATEGY INTO ACTION
Razor-blade model Subscription model
EXHIBIT 1.4
How is the firm going to make money to continue operations? Whats happening now between Microsoft & Google?
Business models in opposite directions
Microsoft
Operating Systems
Software Apps
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EXHIBIT 1.5
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GREEN ECONOMY
WEB 2.0
EXHIBIT 1.7
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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Exhibit 1.9
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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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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