SMG SI 422 Midterm: si422 midterm study guide

• School: Boston University
• Department: Strategy & Innovation
• Course: SMG SI 422
• Professor: John Kirks

Document Summary

Aims of this course: how companies achieve supra-normal profits (profits > avg) Choose the right configuration of activities, incentives, systems. Oe necessary, but not sufficient for long-term ca. If a company enjoys superior profitability, then it has oe. Meaning: you must have oe, (cid:271)ut it(cid:859)s (cid:374)ot (cid:862)good e(cid:374)ough(cid:863) to e(cid:374)a(cid:271)le p(cid:396)ofit. Having a strategy that fits the environment. A cogent configuration of activities, incentives, systems. Ultimately porter believes that firms can achieve ca only if they have both oe and a superior strategy. Mini-case: taxis: tough for taxi drivers to make high profits in their industry. Drivers will find it tough to make profits because their industry is extremely competitive. Final conclusion of 5 forces: therefore, we think the industry is unattractive. Mini-case: german soccer: ca(cid:374)(cid:859)t use sa(cid:373)e st(cid:396)ateg(cid:455) (cid:271)e(cid:272)ause do(cid:374)(cid:859)t ha(cid:448)e sa(cid:373)e $ to spe(cid:374)d (trade-off, wheat he did: avoid one-on-one situations. Mini-case: zappos: competitive advantage: company culture.