SGMT 3000 Lecture Notes - Lecture 1: Hubris, Serendipity, Feedback
9 May 2016
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Chapter 1 - strategic leadership: managing the strategy. Set of related actions that managers take to increase their company"s performance. Strategic leadership: creating competitive advantage through effective management of the strategy-making process o. Strategy formulation: selecting strategies based on analysis of an organization"s external and internal environment o. Risk capital: equity capital for which there is no guarantee that stockholders will: o o. Shareholder value: returns that shareholders earn from purchasing shares in a company o. Capital appreciation in the value of a company"s shares. Profit growth: increase in net profit over time, achieved by: selling products in rapidly growing markets, gaining market share from rivals. Sgmt3000: selling more to existing customers, expanding overseas or diversifying into new businesses. To boost profitability and profit growth, managers must: use strategies to give their company a competitive advantage over rivals, deliver high profitability and sustainable profit growth. Invested capital (ic) = sum of shareholders capital + debts.
