ADM 1100 Study Guide - Final Guide: Strategic Management, Life-Cycle Assessment, Cash Cow

• School: University of Ottawa
• Department: Administration
• Course: ADM 1100
• Professor: All

Document Summary

The ability of a firm to win consistently, i. e. gain greater profits than competitors, over the long term in a competitive situation. Competitive advantage is created through the achievement of five qualities: Managers must create barriers that make it hard for others to copy their superiority advantages (size, culture, product design, marketing strategies, others) Legally protected (patents, copyrights, brand names), well established (brand image, reputation for quality). Can the customer"s need that you fulfill be met by alternative means? (encyclopedias vs. information availability on the internet) (premium chocolate taste treat vs. that of premium ice cream) Supernormal returns eg. profits that are above the average for a comparable set of firms, primarily a function of greater-than-average cost-price margins. Strategic management process is a planning process in which managers: set the organization"s general direction and objectives, formulate a specific strategy. Financial returns (e. g. , return on equity, return on assets) Operating efficiency (e. g. , costs per unit, expense per employee)