COMMERCE 2BC3 Lecture Notes - Lecture 2: Strategic Planning, Strategic Management, Swot Analysis

• School: McMaster University
• Department: Commerce
• Course: COMMERCE 2BC3
• Professor: zeng

Document Summary

Chapter 2 strategic hrm: a business model is a story of how the firm will create value for customers and, more importantly, how it will do so profitably, basic accounting concepts (p. 42): Fixed costs: the rent you pay for the factory. Variable costs: depend on how many units produced. Contribution margins or margins: what you charge-the variable costs of the product. Gross margins: the number of units sold x"s the contribution margin. Miss zing rents a factory for a month. The cost of each shopping bag produced is . She charges customers for each shopping bag. This month, her factory has produced 500 shopping bags. Process of analyzing a company"s competitive situation, developing the company"s strategic goals, and devising a plan of action and allocation of resources (human, organizational, physical) that will increase the likelihood of achieving these goals (noe et al. , p. 43) General manager focuses on short term goals ( customer increase in a month,