ADMS 1000 Lecture 5: Chapter 5 - ADMS 1000

• School: York University
• Department: Administrative Studies
• Course: ADMS 1000
• Professor: Paulette Burgher

Document Summary

Strategic management: consists of the analysis, decisions implementations and evolutions a firm undertakes in order to sustain and create its competitive advantages. Strategy: plans made or the actions taken, in an effort to help an organization/firm obtain its intended purposes. Industry: a group of organizations/firms that share similar resource requirement. Five forces model: allows us to systematically assess the industry environment: bargaining power of suppliers, bargaining power of buyers, threats for new entrants, threats of substitute products, rivalry. New start-ups or diversification of existing firms. The more units you buy the less each unit costs. For example, if walmart buys 5000 shoes, each shoe will cost them less to buy, but if a small store buys 500 shoes, the cost of that shoe will be more compared to walmart. For example, it is very expensive to start a business that requires the use of machinery, because those machines will require a lot of money (capital) to purchase.