SMG SM 131 Lecture 7: Strategy and Innovation with Examples

• School: Boston University
• Department: School of Management
• Course: SMG SM 131
• Professor: Jim Freeman

Document Summary

Firm know what they do but don"t know how to transfer into profits. = profits: maximize firm ( , firm wants a high rate of return. strategy gives the long-term performance/profitability. Of business: coordinates all the activities of business (aka involves all areas of business) Respond: must think about what will the rivals do if you do this. Brains : strategy: , rivals (and others) , both , strategy requires . Most basic analytic tools: swot, competitive positioning, 5 forces. Research : strategy exists as a field of . In organizational performance (with the hope of informing practice) rivals. You want to increase that rectangle. a. b. What are the determinants of long-term: goal: develop and implement approaches to achieve highest profitability, compared to (price - average cost)*quantity = profits. Strategy: strategy = brain that coordinates all firm functions, strategy determines what type of marketing, operations, etc you want to have.