BUSA 356- Final Exam Guide - Comprehensive Notes for the exam ( 57 pages long!)
29 Mar 2018
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Document Summary
Central tasks of a strategist: size up the external environment. Environment and not industry, environment is much broader than simply the industry you compete in: based on the environment, determine how to establish competitive advantage, determine how to maintain success. The distribution of return on equity between different industries remains pretty much the same over recent years. There are particular industries that are at the top (pharmaceuticals) and others at the bottom (air travel). This does not mean that all air travel companies aren"t profitable but that the average air travel company does not have the same return on equity as the average pharmaceutical company. There is no single explanation for why there are these differences between industries. Strategy framework: capture the richness of the real business world, a structured way of thinking about a complex environment, not overly complex itself.
