BUSI 4609 Chapter Notes - Chapter 4: Horizontal Integration, Core Competency, Takeover
7 May 2018
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Chapter 4
Core competency: resource and capabilities that are source of CA
Strategy: integrated and coordinated set of action taken to exploit core
competency and gain CA
Business level strategy: provide value to customer and exploit core competency
in individual product market to get CA
1. level of strategy making
a. diversified
i. achieve diversification
ii. boost performance
iii. capture synergy
iv. establish investment priority
b. single business
2. business in strategy
a. determine customer to serve
i. market segmentation: process use to cluster people with
similar need into individual and identifiable group
ii. industrial: consumer not end market
iii. consumer: consumer is end market
b. determine which customer need to satisfy
i. require improve/ upgrade/ innovate
c. how to satisfy need?
3. customer relationship with business strategy
a. increase value and satisfaction
b. easy access information
c. characteristics
i. reach: access and connect to customer
ii. richness: depth and detail of 2 way flow information
iii. affiliation: interaction with customer
4. functional strategy
a. game plan
corporate business functional operating
business functional operating
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