IB 3101 Lecture Notes - Lecture 9: Rolex, Organizational Culture, Competitive Advantage

120 views4 pages
Published on 17 May 2017
Course
Week 9 Chapter 12 Strategy of International Business
Strategy
Actions that managers take to attain the goals of the firm
o Profitability
Is the rate of return the firm makes on its invested capital
Reduce costs
Add value and raise prices
o Profit growth
Is the percentage increase in net profits over time
Sell more in existing markets
Enter new markets
Value Created = price consumer is willing to pay (value to consumer) cost of
production
Cost Leadership Strategy
Minimize costs
Ex. Micron
Differentiation Strategy
Competitive advantage by having unique features
Ex. Rolex, McDonald’s, PWC
Primary Activities
Involves creating the product, marketing and delivering the product to
buyers, and providing support and after-sale service to the buyers of the
product
o R&d
o Production
o Marketing
o Sales
o Customer service
o Design
Support Activities
Provides the inputs that allow the primary activities of production and
marketing to occur
o Information systems
o Logistics
o HR
Organization architecture
The totality of a firm’s organization - formal organizational structure, control
systems and incentives, organizational culture, processes, and people
Organizational structure
The formal division of the organization into subunits
find more resources at oneclass.com
find more resources at oneclass.com
Unlock document

This preview shows page 1 of the document.
Unlock all 4 pages and 3 million more documents.

Already have an account? Log in

Get OneClass Notes+

Unlimited access to class notes and textbook notes.

YearlyBest Value
75% OFF
$8 USD/m
Monthly
$30 USD/m
You will be charged $96 USD upfront and auto renewed at the end of each cycle. You may cancel anytime under Payment Settings. For more information, see our Terms and Privacy.
Payments are encrypted using 256-bit SSL. Powered by Stripe.