SMG SM 131 Lecture Notes - Lecture 17: Blackjack, Iceberg, Cost Leadership

• School: Boston University
• Department: School of Management
• Course: SMG SM 131
• Professor: Kabrina Chang

Document Summary

Goal = maximize profit in long term. Strategy = brains of business: pulls all function together, helps coordinate everything that gets done. Rivals (and others) respond: think about how others will react to something you do. Strategy requires tradeoffs: what we can do and what we can"t. Competitive position: introduced by michael porter, focuses mostly on firm level choices. 5 forces analysis: also introduced by michael porter, focuses more on industry level choices. Strategy exists as a field of research and practice: in practice, the goal is to enable organizations (typically firms) to achieve the greatest possible organization performance. But typically profits in long-term: in research, the goal is to understand what are the determinants of long-term organizational performance (with the hope of informing practice) Goal of strategy: develop and implement approaches to ensure that organizations achieve the highest possible rate of success (profitability: particularly relative to rivals. Strategy = brain that coordinates all firm functions.