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Lecture 5

MGMT 4000 Lecture 5: MGMT 4000 Lecture 5

3 Pages

Course Code
MGMT 4000
Ernavan Duren

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find more resources at Lecture #5 October 6 2016-10-06 Topic One: Beyond Components of Strategy and Strategic Management Current Strategy Focuses on:  Product Service Offering  Strategic Direction  Competitive Premise  Business System Next, perform the following:  External Assessment  Performance Assessment  Internal Assessment Strategic Options are then explored New Strategy has then been formed. Organizational Contexts  Strategic Business Unit o Not for Profit / Public o Corporate / Alliance o Entrepreneurial o Professional Two Broad Conceptual Approaches  Product – Service – market o Top Down  Resources – Activities to Competencies o Bottom Up Corporate Strategy ▯Directional Form▯  Firm  Unrelated Firm - Unregulated ▯(orizontal▯ )ntegration  Buyers – Forward Integration Vertical / Downstream  Competitor – Regulated Horizontal Integration  Suppliers – Backward integration Vertical / Upstream Corporate Strategy as Wealth Creation in a M-SBU Company  Sustained wealth creation requires mobilizing resources, activities and capabilities appropriate to the external environment – overtime  Wealth find more resources at find more resources at o = Revenue from Sale of products, services, technologies in all markets overtime o – Costs of developing, producing, distributing and supporting all products, services and technologies (ever time) o + Transfers into and out of the company (Taxes, Subsides, Capital, Other) (ow to Select an Appropriate ▯Mix▯ of SBUs – Select  Good Businesses – may be unrelated  Businesses in an industry undergoing consolidation (horizontal / vertical)  Related products and or services  Related technologies  Related capabilities and competencies  Future relatedness Value is
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