BUS 478 Lecture Notes - Lecture 1: Habitat, Swot Analysis, Anarchism In Russia

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 478
• Professor: Michael Favere- Marchesi

Document Summary

A strategy is a set of related actions that managers take to increase their company"s performance. If a company"s strategies result in superior performance, it is said to have a competitive advantage. Strategic leadership is about how to most effectively manage a company"s strategy-making process to create competitive advantage. Strategy formulation is the task of selecting strategies, whereas strategy implementation is the task of putting strategies into action, which includes designing, delivering and supporting products; improving the efficiency and effectiveness of operations; and designing a company"s organizing structure. One way of measuring profitability of a company is by the return that it makes on the capital invested in the enterprise (roic). Profit growth the increase in net profit (net income after tax) over time. To both boost profitability and grow profits over time, managers must formulate and implement strategies that give their company a competitive advantage over rivals.