BUSS1000 Lecture Notes - Lecture 5: Strategic Management, Cost Leadership

• School: University of Sydney
• Department: Business Studies
• Course: BUSS1000
• Professor: Steven Hitchcock

Document Summary

Deliberately choosing a different set of activities to deliver unique mix of value. Integrated, overarching concept of how business achieves its objectives. Direction and scope of organisation over long terms, achieves advantage in a change environment through configuration of resources and competences with aim of fulfilling stakeholder expectations. Is proposed solution within scope of organizational activities. Design: usage of evaluative and analytic processes to establish clear strategic direction. Experience: importance of history and previous experiences in shaping decisions. Ideas: importance of promoting diversity, promote new ideas to solve uncertainty. Discourse: using language to shape strategy and guide via influence, power and legitimacy. Each strategy seeks to create value customers buy. Aim: firm finds and exploits all sources of cost advantage and aims becoming a cost producer in industry. Excessive concern on cost minimisation, forgetting essential factors such as customer experience. Vulnerable to predictable and unpredictable macro level forces.