BU111 Lecture Notes - Lecture 3: Ikea, Kodak
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BU111 Full Course Notes
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Document Summary
There is no single model superior to the rest. Focuses on understanding the political, economic, social and technological (pest) factors that shape the environment. Valuable for determining the appropriateness of the firm"s current or proposed strategy given the environment and internal characteristics. Identifies key variables to be considered in strategic analysis. Double headed arrows shows that each variable is both influenced by and influences others to which it is connected. Biases of management which influences the kind of decisions/strategies made. Managers ultimately make organizational decisions and determine organizational strategy. Affects how management interprets the environment and what it perceives as an opportunity vs. a threat. Management preferences must be consistent with the strategy or it will not be efficient nor effective. Human, capital, and financial resources of the firm. Linked to strategy as they determine what strategies the organization has the resources to pursue and are feasible.
