MGT 3200 Lecture Notes - Lecture 3: European Cooperation In Science And Technology, Kmart, Rolex
Document Summary
Mgt 3200: focus of strategic planning is on maintaining a positive relationship with the organization"s external environment, a term strategy is just another name for an organization"s grand plan. Synergy: corporate: focuses on what businesses does the organization want to own. Business-level: focuses on how do we want to compete in a market/industry. You can have one corporate strategy and many business strategies. If you own five businesses, you could have 5 business strategies. The goal of both is market share and profitability. This approach to strategy formulation involves 2 levels of strategy: corporate and business level. The corporate strategy is to own that mix of businesses that maximize market share and profitability. The various business level strategies employed are determined via the bcg matrix. Bcg matrix and business-level strategy: made of 2 variables, market share (horizontal axis) and market growth (vertical axis). Each one has two values, low and high. High market share: a lot of people want it.
