SGMT 3000 Lecture Notes - Lecture 1: Hubris, Competitive Advantage

• School: York University
• Department: Strategic Management
• Course: SGMT 3000
• Professor: Stan Xiao Li

Document Summary

Invested capital (ic) = sum of shareholders capital + debts. Roic = rate of return of invested capital. Competitive advantage already achieved above industry avg. Sustained competitive advantage: number of years -> 3 year/5 years. Most diffuclt part of how to satfy cust. Needs is doing so such that you can hinder/avoid copycats. Monitor the firms you want to copy from. Be a copy cat, be a smart copycat by foreseeing issues/concerns that will arise. Cognitive biases: 6 types, prior hypothesis bias, escalation of commitment. Even though theres no good result, you still commit to it becaue you have committed so much: reasoning by analogy, representativeness -> generalized form a small sample. 5. illusion of control: hubris, availability of error.