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Lecture 5

BU481 Lecture Notes - Lecture 5: Value Proposition


Department
Business
Course Code
BU481
Professor
Karin Schnarr
Lecture
5

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BU-481 Lecture 5
What is Strategy?
How the organization intends to compete and succeed in the marketplace
Way to translate general ideas about direction into actionable terms
Creation of unique and valuable position involving the combination of a different set activities
Expression of how the organization can be unique in a way that can’t be imitated by competitors
Strategy provides firm with its overall direction, aimed at achieving sustained, superior
performance over the long run in a competitive marketplace
What is Strategy (Porter Article)?
Not operational effectiveness
o Leads to imitation and homogeneity in most cases
Rests on unique activities
o Being different than competitors
o Combining activities in different ways creating a strategic fit
Sustainable strategy requires trade-offs
o Can’t be all things to all people
Creating a clear strategy often dependent on leadership
o Requires consistent discipline and clear communication
Elements of a Business Strategy
Goals
o An expression, in measurable terms, of what a business intends to achieve
Absolute and relative to competition
Provide targets against which progress and performance can be assessed
Can be different time frames
Hard goals (financial) vs soft goals (social)
Often include growth (financial and geographic)
Core Activities
o Activities that are critical to the effectiveness of the operation of the business
Activities within the firm that add value
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