MGT 30220 Study Guide - Final Guide: Capital Market
Strategic Management Study Guide
• Ways to exploit and expand resources and capabilities:
o 1. Employing Slack:
▪ refers to unused resource capacity
▪ need to capture slack in the form of an economy of scope, which arises
when the average cost of producing two different products is less when
delivered together than separately
o 2. Creating Synergy:
▪ occurs when different elements of a system interact in a way that creates
more value together than the elements create separately
• whole exceeds the sum of its parts
▪ Example:
• Disney competes in two adjacent entertainment markets, films
and theme parks
o two businesses create more brand value for Disney than
either would separately
▪ Synergies exploit the resources and capabilities to offer customers better
products and services
• also increases the number and ways a company interacts with its
customers
o 3. Leveraging Shared Knowledge:
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