ECON 1 Lecture Notes - Lecture 34: Investment Banking, Clean Technology, Organizational Structure
Document Summary
Strategic management = is the integrative management field that combines analysis, formulation, and implementation in the quest for competitive advantage. What strategy is: gaining & sustaining competitive advantage. Strategy = is the planned & realized set of actions a firm takes to achieve its goals; governs the ubiquitous quest for superior performance. Competitive advantage = a firm that formulates & implements a strategy that leads to superior performance relative to other competitors in the same industry. E. g. google has competitive advantage over microsoft, yahoo, etc. in online search. Sustainable competitive advantage = outperforming competitors/ industry average over a prolonged period of time. Competitive disadvantage = underperformance relative to other competitors in the same industry / industry average. Competitive parity = performance of 2 or more firms at the same level. Strategy= the goal-directed actions a firms intends to take in its quest to gain & sustain competitive advantage. It"s the managers theories about how to gain & sustain comp. adv.
