BUS 800 Final: BUS 800 – Exam Review

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15 Jan 2019
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Corporate strategy defines the scope of the firm in terms of the industries and markets in which it competes (includes investment diversification, vertical integration, acquisitions, and new venture) Business strategy how the firm competes within a particular industry (needs a competitive advantage) Stakeholder approach hard to evaluate the value of stakeholders because it is difficult to put a monetary value on the potential benefits that different strategies might confer. Basic framework for strategy analysis: the firm, the remote environment (macroenvironment pestel, the industry environment (microenvironment customers, competitors, suppliers) Absolute cost advantages (low cost resources), product differentiation, access to distribution channels, government and legal barriers, retaliation by established producers: competition from established rivals, concentration, diversity of competitors, product differentiation, Excess capacity and exit barriers, cost conditions: 2 vertical sources, power of suppliers, factors determining power of suppliers relative to producers; same as those determining power of producers relative to buyers, power of buyers.