MGMT 4000 Lecture Notes - Lecture 5: Berkshire Hathaway, Resource Management, Status Quo

• School: University of Guelph
• Department: Management
• Course: MGMT 4000
• Professor: Nadege Lavallet

Document Summary

Set of goal-oriented decisions made and actions taken by an organization to gain and sustain superior performance relative to competitors. Three levels: corporate, directional strategy, portfolio analysis, business, generic strategies, competitive, cooperative moves, functional. Grow within a single industry: market penetration; gaining more market share for products, market development; same industry, moving outside of the current market such as different distribution channels; ex. Cineplex selling popcorn outside of the theatre: product development; developing new products to serve the same market. Expand presence within a single industry through mergers and acquisitions: acquisitions: a large organization acquiring a small organization. Expand along the value chain (diy or through m&a) Enter new industries: related/concentric (core company, uber eats, honda, unrelated/conglomerate, berkshire hathaway, 3m. When competing in multiple industries and markets helps decide corporate strategies for each business unit/product line. Pro: helps management have a view of their market shares vs industry growth. Con: just a tool that simplifies industries and markets.