SMO310 Lecture Notes - Lecture 5: Pest Analysis, Operational Excellence, Swot Analysis

• School: University of Alberta
• Department: Strategic Management and Organization
• Course: SMO310
• Professor: Richard Field

Document Summary

How does being in one business help us compete in our other businesses: logic of synergy and diversification. Synergy: interaction of two or more activities create a combined effect greater than the sum of individual effects. Diversification: organization participates in multiple businesses that are distinct from each other. Concentric diversification: new business produces products that are te(cid:272)h(cid:374)i(cid:272)ally si(cid:373)ilar to (cid:272)o(cid:373)pa(cid:374)y"s (cid:272)urre(cid:374)t produ(cid:272)t (cid:271)ut appeal to new consumer group. Horizontal diversification: new business products are totally unrelated to current product but appeal to same consumer group. Conglomerate diversification: business produces products totally u(cid:374)related to (cid:272)o(cid:373)pa(cid:374)y"s (cid:272)urre(cid:374)t produ(cid:272)t a(cid:374)d appeal to (cid:374)ew consumer group. Value chains: identify important constituent parts in an organization, also called capabilities. Vrio: valuable, reare, inimitable, organization: suggests that a capability, or resource, is likely to yield a competitive advantage to an organization. Pestel: political, economic, sociocultural, technological, environmental, and legal environments: directs to analyze environments to determine threats and opportuniti.