GMS 850 Lecture Notes - Lecture 4: Product Return, Net Present Value, Competitive Advantage
28 Mar 2017
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Strategies: general statements about the way the firm plans to achieve goals /objective and their next move. Tactic: buy shares of your company back: d/e ratio increase debt equity share, why raise d/e to achieve target, get it back to balance, balance it! ( depending on form of business) Having no debt is not good for business too much debt no good: market share: Distributor: high price high quality: make product highest quality in the market, at the highest price, brand name represents quality. Vision general direction of company, how you want to be seen by other stakeholders. Mission clear cut specific series of line that indicate what the measures of success are (5) 3 components, (name, value and time) Goal of strategic management is to create above-average returns for investors. Returns exceeding those for alternative opportunities at equivalent risk. Earning above-average returns depends in part on the organization"s competitive environment. Npv ranking and your profitability ranking two measures for.
