ECON 1 Lecture Notes - Lecture 3: Iso 9000, Swot Analysis, Weighted Arithmetic Mean
Document Summary
Chapter 1 strategy - strategy and the strategic management process. The strategic management process: (t1 l1; l3; l4; l6; t2 l3) It is a sequential set of analyses and choices that can increase the likelihood that a firm will choose a good strategy: mission: is a firm"s long-term purpose. What it aspires to be and what it wants to avoid. Three specific organizational policies and practices are important: formal organizational structure, formal and informal management control systems, employee compensation policies. They should be consistent and reinforce the strategy. As already stated there are problems with determining the economic value or the benefit perceived by the customer and the calculation of total cost. The following two approaches have emerged to estimate a firm"s competitive advantage: Accounting performance is a measure of its competitive advantages calculated by using information form a firm s published profit and loss and balance sheet statements.
