33:620:301 Study Guide - Midterm Guide: Organizational Structure, Cost Driver, Vertical Integration
3 Nov 2013
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Document Summary
Strategy: a company"s action plan for outperforming its competitors and achieving superior profitability. How to position the company in the marketplace. How to best respond to changing economic and market conditions. How to capitalize on attractive opportunities to grow the business. How to achieve the company"s performance targets. Strategy is about competing differently from rivals set them apart. Highlights what a company should or should not do. Provide buyers with what they see as superior value compared to rivals. Understand that a company"s strategy evolves over time because of changing circumstances and ongoing management efforts to improve the strategy. A company"s strategy has to be both proactive and reactive: proactive have planned initiatives to improve financial performance, reactive responses to unforeseen developments. Deliberate strategy: consisting of proactive strategy elements that are both planned and realized as planned. Emergent (realized) strategy: consisting of reactive strategy elements that emerge as changing conditions warrant.
