ADM 3318 Lecture 12: ADM3318 March 21

• School: University of Ottawa
• Department: Administration
• Course: ADM 3318
• Professor: Ado Abdoulkadre

Document Summary

Value creation: a group of activities that increase the value of goods or services to consumers. Earn a greater return from the firm"s distinctive skills or core competencies. Earn a greater return by leveraging any valuable skills developed in foreign operations. Strategy: identifying and taking actions that will lower the costs of value creation and/or will differentiate the firm"s product offering through superior design, quality, service, functionality, etc. Make things good enough to be of interest to consumers. Fundamentally about how you add value: for international business the competition is greater. Core competencies are the things that you, and hopefully only you, can offer to customers: innovation, efficiency, superior customer service. Differentiation: the company is composed of different units that work on different tasks with differing degrees of authority. Vertical differentiation: centralization the degree to which high-level managers make strategic decisions, decentralization- the degree to which lower-level managers make and implement strategic decisions.