Foundations: Strategy, Industry Environment & Resources

Notes

BUSINESS STRATEGY SUMMARY - Components of a successful strategy (3): temporal orientation (simple, consistent, long-term goals), understanding the competitive environment, understanding your own resources and capabilities - Definition of strategy = plan or series of actions that a company adopts to reach a specific long-term goal - Strategy vs tactics = tactics is more like winning a battle, is about a plan to succeed in each step, in everyday actions - Strategic management = management is about getting things done e@iciently and e@ectively - Roles of strategy (4): decision support, coordinating device, target, orientation and animation - 2 types of strategies in the strategic management world: corporate-level strategy (where? which industry should we be in?) and business-level strategy (how? how should we compete to have competitive advantage?). Growth pathways can be focused on either product or market: o Product: market penetration (selling existing products to same market) and product development (selling new product to existing market) o Market: market development (selling existing product to new market) and diversification (selling new product to new market) - ROE (return on ...