BUS 800 Chapter 1-2: BUS 800 Chapter 1-: BUS 800 – Chapter 1 and 2
Document Summary
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. Pestel analysis understanding and predicting how an industry might change and evolve over time. Economic i. e. level of economic activity, mobile technology in developing economies. Social i. e. health scares, changes in fashion. Competition from substitutes: buyer propensity to substitute, relative prices and performance of substitutes. Competition from entrants (barrier to entry: capital requirements, economies of scale (large production, absolute cost advantages (low cost resources, product differentiation, access to distribution channels, government and legal barriers, retaliation by established producers.
