Class Notes (921,234)
CA (542,480)
Ryerson (30,884)
GMS (1,961)
GMS 200 (1,261)
Lecture 3

Week 3

8 Pages
73 Views

Department
Global Management Studies
Course Code
GMS 200
Professor
Robert Hudyma

This preview shows pages 1-3. Sign up to view the full 8 pages of the document.
Chapter 4
What is competitive advantage?
Competitive advantage – allows an organization to deal with market and environmental
forces better than its competitors
-Can earn competitive advantage through its product, pricing, customer service,
cost efficiency, and quality of the product
The General Environment
-Consists of all conditions in the external environment that form a background
context for decision making
Typical External Environment issues:****
What constitutes the external environment of organization?
1) Economic envirionment – health of the economy in terms of inflations, income
levels, unemployment, job outlook
2) Social-cultural environrment – norms, customs and social values such as human
rights and trends in education
The populations demographic is a key feature
Example: Kraft,
3) Legal-political environment – prevailing philosophy and objectives of the
political party or parties running the government
Example: Enron
Entered in India in 1993, called Dabhol project, cost 2.8 billion
4) Technological environment – development and availability of technology
Example: Blackberry, Blackberry Playbook
5) Natural environment – nature and conditions of the natural environment
Example: Carbon market
Specific environment*****
Specific environment – consists of the actual organizations, groups, and the people with
whom that the organization interacts and conducts business with
-These are environmental factors of direct consequence to the organization as it
operates on a day-to-day operation
The specific environment sis often described in terns of stakeholders
Stakeholders – are the persons, groups and institutions directly affected by an
organization,
Examples: customers, suppliers, competitors, regulators, investor and owners
-You want to create value for ur stakeholders
Nortel is a company who didnt understand their environment
-Part of bell telephone 1895
-Known as a company that made your phone
-In 1997 John Roth changed strategy- telephone to internet
-Massive restructuring- acquisitions worth 19.7 billion
-1999-2000, Nortel equipment carried 75% of North American internet traffic
www.notesolution.com
-2000-2001, bubble burst, he thought
-Nortel produced wireless equipment on CDMA
-Job cuts and accounting books
-Many provider followed European Wireless communications standards – GMS
-VHS(JVS) and Betamax(Sony)
In mny ways, the mistake on wireless demostarates that the company may have been a
victim of focusing on technology ahead of undersanding their costumers
Managing Uncertainly: SWOT
-Strengths
-Weaknesses
-Opportunities
-Threats
-The two main factors are the internal (strength and weakness) and external
environment (opportunities and threats)
Example : Starbucks
Strengths – brand, quality, experience, homely space, profitable organizations, good
employer
Weakness – high cost, low in speed, mostly in US, relies on coffee
Opportunities - co-branding, global operations, diversity from coffee,
Threats – ethics with suppliers, people changing, increase market in tea, economic crisis
Value creation – the organization is creating value for important constituencies
Resource Input (Suppliers and Communities)
-Suppliers : Benefits/costs
-Communities: Citizenship
Transformation Process (Employee)
-Wages, job satisfaction, quality of work life, unions
Product Output (Customers and Owners)
-Customers: Price and quality
-Owners: Profits and losses
Value Creation – is creating value, for satisfying needs for constituencies
-Business create value, for customer by the quality and price, owner the by realized
the profit or loss,
-Business create value for suppliers through the long term relationship and for
communities by support for public charities and public services
Environmental Uncertainly*****
Environmental Uncertainly – there is a lack of complete information regarding what
exists and what developments may occur
Managers may have a hard time predicting the future
Two dimensions of environmental uncertainty
1) Complexity, or the number of different factors in the environment and
2) The rate of change in these factors, how quick the factors change
www.notesolution.com
Low uncertainty – food, beverage, gas and electricity, production of raw materials, health
care system
Low-moderate uncertainty – oil industry, banking industry, alcohol****
High uncertainty – Music industry, Computer software, fashion, stock market (investor),
insurance, IT, smartphones
High – moderate uncertainty – Video games, movies, cell providers
What constitutes the external environment of organization?
The greater the environmental uncertainty, the greater the need for flexibility and
adaptability in organizational designs and work practices
Who are the customers?
External customers – purchase the goods produced or utilize the service provides
Example industrial customers buy from a company and use it in their firm
Internal customers – are found within the organizations
Examples: individuals and group that depend on one`s another`s work in order to do their
own jobs well
What customers want?
Customers put today’s organizations to a very stiff test because they primarily want at
least one of the four things in the good and service they buy:
1) High Quality
2) Reasonable Price
3) On time Delivery
4) Excellent Service
Organizations that cant meet customer expectations, the lose competitive advantage
Example: Intel Corporation
Customer Relationship Management
-Poor service and product dissatisfaction are the first and second reason why
customer abandoning a retail store
Customer Relationship Management - strategically tries to build lasting relationships
with and add value for customers
-Using the latest technologies to maintain intense communication with customers
as wells knowing their needs
Supply Chain Management – strategically links all operations dealing with resources
supplies
-Uses IT to improve purchase, manufacturing, transportations and distribution
www.notesolution.com

Loved by over 2.2 million students

Over 90% improved by at least one letter grade.

Leah — University of Toronto

OneClass has been such a huge help in my studies at UofT especially since I am a transfer student. OneClass is the study buddy I never had before and definitely gives me the extra push to get from a B to an A!

Leah — University of Toronto
Saarim — University of Michigan

Balancing social life With academics can be difficult, that is why I'm so glad that OneClass is out there where I can find the top notes for all of my classes. Now I can be the all-star student I want to be.

Saarim — University of Michigan
Jenna — University of Wisconsin

As a college student living on a college budget, I love how easy it is to earn gift cards just by submitting my notes.

Jenna — University of Wisconsin
Anne — University of California

OneClass has allowed me to catch up with my most difficult course! #lifesaver

Anne — University of California
Description
Chapter 4 What is competitive advantage? Competitive advantage allows an organization to deal with market and environmental forces better than its competitors - Can earn competitive advantage through its product, pricing, customer service, cost efficiency, and quality of the product The General Environment - Consists of all conditions in the external environment that form a background context for decision making Typical External Environment issues:**** What constitutes the external environment of organization? 1) Economic envirionment health of the economy in terms of inflations, income levels, unemployment, job outlook 2) Social-cultural environrment norms, customs and social values such as human rights and trends in education The populations demographic is a key feature Example: Kraft, 3) Legal-political environment prevailing philosophy and objectives of the political party or parties running the government Example: Enron Entered in India in 1993, called Dabhol project, cost 2.8 billion 4) Technological environment development and availability of technology Example: Blackberry, Blackberry Playbook 5) Natural environment nature and conditions of the natural environment Example: Carbon market Specific environment***** Specific environment consists of the actual organizations, groups, and the people with whom that the organization interacts and conducts business with - These are environmental factors of direct consequence to the organization as it operates on a day-to-day operation The specific environment sis often described in terns of stakeholders Stakeholders are the persons, groups and institutions directly affected by an organization, Examples: customers, suppliers, competitors, regulators, investor and owners - You want to create value for ur stakeholders Nortel is a company who didnt understand their environment - Part of bell telephone 1895 - Known as a company that made your phone - In 1997 John Roth changed strategy- telephone to internet - Massive restructuring- acquisitions worth 19.7 billion - 1999-2000, Nortel equipment carried 75% of North American internet traffic www.notesolution.com
More Less
Unlock Document


Only pages 1-3 are available for preview. Some parts have been intentionally blurred.

Unlock Document
You're Reading a Preview

Unlock to view full version

Unlock Document

Log In


OR

Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit