BU111 Lecture Notes - Ikea, Economic Stability, Information Technology
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BU111 Full Course Notes
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Critical success factors: achieving financial performance, meeting customer needs, building quality products and services. Encouraging innovation and creativity: gaining employee commitment, creating a distinctive competitive advantage. Identifies key variables to be considered in strategic analysis. Determines needed resources, organizational capabilities, and management preferences critical linking variable each variable related to the rest any variable can either drive or constrain strategy: principal logic consistency or alignment. Assess forces at work and their implications. Ikea strategy (consistency: note: absolute alignment is not realistic. First task: deal with strategy-environment linkage: assess forces at work and their implications. How to do an external analysis: general environment. Pest model considers political, economic, social/demographic, and technological factors. Porter"s five forces - analyzes five important sources of competitive pressure and intensity; predicts profitability of industry. Look for data, statistics, trends, forecasts, expert opinions, etc. Government can create incentives, constraints, or support/bail out when needed. Affects uncertainty, risk, and costs faced by firm.
