MGMT 490 Lecture Notes - Lecture 16: Strategic Choice, Strategic Management, Competitive Advantage
Lecture note 16 MGMT 490:
• Strategy
• A firm's theory about how to gain competitive advantages
• Strategic Management Process or Mission of Firm
• Mission-> Objectives->External and Internal Analysis-> Strategic Choice->Strategy
Implementation-> Competitive Advantage
• Objectives of the Strategic Management Process
• specific, measurable targets
• the things a firm needs to 'do' to achieve its mission
• should influence other elements in the strategic management process
• External and Internal Analysis or Systematic examination of the Environment
• External Analysis:
• -interest rates
• -demographics
• -social trends
• -technology
• Internal Analysis:
• -human resources (knowledge)
• -manufacturing ability
- technology
• Strategic Choice
• External and internal analysis -> Strategic Choice-> Business Level and Corporate
level
• Strategy Implementation
- how strategies are carried out
- who will do what
- organizational structure and control
- who reports to whom
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Document Summary
Lecture note 16 mgmt 490: strategy, a firm"s theory about how to gain competitive advantages, strategic management process or mission of firm, mission-> objectives->external and internal analysis-> strategic choice->strategy. Manufacturing ability technology: strategic choice, external and internal analysis -> strategic choice-> business level and corporate level, strategy implementation. How does the firm hire, promote, pay, etc. Every strategic choice has strategy implementation implications strategy implementation is just as important as strategy formulation: a strategy is only as good as its implementation, competitive advantage the ability to create more economic value than competitors. Competitive advantage is the result of doing something different and/or better than competitors: competitive advantage- two types, 1)preference for the firm"s output. People choose the firm"s output over others" People are willing to pay a premium: 2)cost advantage vis- -vis competitors lower costs of production/distribution, competitive advantage temporary and sustainable, temporary: Competitive advantage typically results in high profits.
