MGT 125 Lecture Notes - Lecture 23: Cash Flow, Swot Analysis
Document Summary
Corporate portfolio mix: manage portfolio of orgs businesses. Bcg matrix: strategy tool guides resource allocation decisions on basis of market share & growth rate of strategic business units. Business unit evaluated via swot, placed in a category: Cash cows: large cash but future growth limited. Stars: fast growing & dominate market share. Questions marks: attractive but hold small market share % Dogs: not produce or consume much cash. Implications: sell dogs, milk cash cows & limited investment in them, use cash to invest in stars with strong potential (sell or nurture into stars) Strategic business units (sbus): single businesses of org have several different businesses that are independent & formulate own strategies. What sets org apart distinctive edge from core competencies (from operational assets/resources competitor doesn"t have) Via exploiting resources or capabilities effectively to develop core competencies. Sustain = keep edge despite competitor"s action or evolutionary changes. Michael porter: how managers create & sustain competitive adv.
