MGBU 4441 Lecture Notes - Lecture 1: Strategic Management, Competitive Advantage, Market Capitalization
20 Feb 2017
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Business strategy: objective of strategy in business is to improve performance of organization. Performance can be defined as sales, profits, market share, market capitalization, customer perception, sustainability, etc: strategy is series of choices that firm makes in order to improve performance, can"t do everything b/c can"t do everything well. Strategic management: success in business based on. Performing some activities different & better than competitors. To benefit of some segment of customers that are willing to pay for goods & services. Above what it costs to produce them: if want ongoing success, need to do that in way that"s difficult to imitate, even nonprofit organizations need to provide benefit that donars are willing to pay for/fund. Choices & tradeoffs: strategic choices separate one from competitors & are how one adds value as manager, strategy is constrained optimization problem b/c all businesses have constraints (capital, employees, locations, etc. ) & are making choices to optimize what can do given those constraints.
