INTB 1203 Chapter Notes - Chapter 12: Organizational Culture, Fixed Cost, Relational Capital

• School: Northeastern University
• Department: International Business
• Course: INTB 1203
• Professor: Raynus Joseph

Document Summary

Strategy- a(cid:272)tio(cid:374)s (cid:373)a(cid:374)agers take to attai(cid:374) the fir(cid:373)"s goals- for most firms, the preeminent goal is to maximize the value of the firm for its owners and its shareholders. Profitability- a ratio or rate of return concept- net profits divided by total invested capital. Profit growth- the percentage increase in net profits over time. Value creation- performing activities that increase the value of goods or services to consumers. Low-cost strategy- when a firm creates more value for its customers and does so at a lower cost. Differentiation strategy- a strategy that focuses primarily on increasing the attractiveness of a product. Operations- the various value creation activities a firm under takes. Primary activities: four functions: research and development, production, marketing and. Supporting activities: functions: information systems, logistics, human resources, infrastructure. Organization architecture- the totality of a fir(cid:373)"s orga(cid:374)izatio(cid:374), i(cid:374)(cid:272)ludi(cid:374)g for(cid:373)al organizational structure, control systems and incentives, organizational culture, processes, and people.