GMS 200 Lecture Notes - Lecture 7: Vertical Integration, Strategic Management, B Unit

• School: Ryerson University
• Department: Global Management Studies
• Course: GMS 200
• Professor: Sui Sui

Document Summary

Guest speaker- multinational companies: (george silva-risk manager at mercedes-benzes) Global trends: volatility, regulations, structural market change, changing customer needs. Approach: green, growing in new markets, tech. Advantages working for multinational companies: career opportunities, diversity. Disadvantages: obstacles in organizational culture, exchange rate. Figure 7. 2 strategy formulation and implementation in the strategic management process. Internal assessment of the organization: strengths (manufacturing efficiency, skilled workforce, good market share?, weaknesses (outdates facilities, weak management?) External assessment of the organization: opportunities (possible new markets, strong economy?, threats (new competitors, shortage of resources?) Figure 7. 5 porter"s model of 5 strategic forces affecting industry competition. New entrants: threat of potential new competitors. Substitute products: threat of substitute products or services (ex. loan from bank) Figure 7. 1 3 levels of strategy in organizations. Corporate strategy: sets long-term direction for the total enterprise. Business strategy: identifies how a division will compete in its product domain. Functional strategy: guides activates within one specific area of operations (finance,