MGMT 5 Lecture Notes - Lecture 4: Cash Flow, Customer Satisfaction, Environmental Factor
Document Summary
Strategic management: involves identifying, developing, and maintaining a sustainable competitive advantage of a firm. Competitive advantage: the ability of a firm to win consistently over the long term in a competitive situation. Sustainable competitive advantage: rare: you must offer something scarce, non-substitutable: your competition should not be able to substitute something else. Inimitable: your comparative advantage must be difficult for others to replicate for your comparative advantage: value: you must offer something client needs and no other competitor provides (comparative advantage or distinctive competence) Protection against competition: barriers to entry, financial resources. How do we view ourselves: captures the general direction, identity and aspirations of the organization, needs to be agreed upon by top management, should inspire passion from managers and workers. Organizational mission: arti(cid:272)ulatio(cid:374) of the orga(cid:374)izatio(cid:374)"s purpose: Porter"s fi(cid:448)e for(cid:272)es a(cid:374)alysis: the domestic environment. Higher profits come from: few competitors, quality based competition, high entry barriers, few new entrants, few substitutes, many customers, fragmented customers, many suppliers.
