ECON 1 Lecture Notes - Lecture 7: Core Competency
Document Summary
Structural element: one of two major decision categories addressed by a strategy. Includes tangible resources such as buildings, equipment and computer systems. Infrastructural elements: one of two major decision categories addressed by a strategy. Includes the people, policies, decision rules and organisational structure choices made by a firm. Strategy: a mechanism by which a business coordinates its decisions regarding structural and infrastructural elements. Mission statement: a statement that explains why an organisation exists. It describes what is important to the organisation, called its core values, and identifies the organisations domain. Business strategy: the strategy that identifies a firm"s targeted customers. Core competency: an organisational strength or ability, developed over a long period, that customers find valuable and competitors find difficult or even impossible to copy. and sets time frames and performance objectives for the business. Functional strategy: a strategy that translates a business strategy into specific actions for functional areas such as human resources, marketing and finance.
