BSM 100 Midterm: Test 2 review

• School: Ryerson University
• Department: Business Essentials
• Course: BSM 100
• Professor: Brad Poulos

Document Summary

Designing a competitive business model and building solid strategic plan. It is vital to develop a strategy for success. Every business is exposed to the forces of a rapidly changing competitive environment. Intellectual capital: key source of a company"s competitive advantage composed of human capital (talents, skills, etc. of workforce), structural capital (knowledge/experience possessed), and customer capital (reputation, established customer base, loyalty) Strategic management: process of developing a game plan to guide a company as it strives to accomplish its goals. Four aspects of businesses can be used to determine company"s competitive advantage: products sold, service provided, pricing offered, way they sell. Key to success is establishing a sustainable competitive advantage. Core competencies: unique set of capabilities a company develops in key operational areas that allow it to vault past competitors; nucleus of company"s competitive advantage. Strategic management process: develop clear vision and make mission statement focus everyone"s attention on same target.