SMG SM 131 Lecture Notes - Lecture 8: Cost Leadership, Swot Analysis, Root Mean Square

• School: Boston University
• Department: School of Management
• Course: SMG SM 131
• Professor: Matthew Reis

Document Summary

Enable organizations to achieve the greater possible organizational performance. Higher than other rms and industries: most important function of business. Everything needs to t together once strategy is de ned: rivals respond. Others are going to look at and respond to what business is doing. Always think about rivals that are going to respond during strategic planning (requires undertaking actions while anticipating their potential effect) Its very easy to imitate features such as avors, packaging and spokespersons: need to think of internal and external environmental. Pro ts (rate of return) vary across industries due to external factors such as industry level that drive the pro ts. Firm economic pro ts - industry level sources and rm level sources - need to focus on both: strategy involves tradeoffs. Porter"s five forces framework: 5 basic forces that affect if rm can achieve pro ts based on industry analysis, industry rivalry.