Textbook Notes (368,448)
Canada (161,882)
Business (2,391)
BU481 (56)
Chapter

What is Strategy Notes .docx

4 Pages
92 Views
Unlock Document

Department
Business
Course
BU481
Professor
John Young
Semester
Fall

Description
What is Strategy? Article -how strategy relates to your own resources  Positioning is rejected as too static for today’s dynamic markets and changing technologies  Competit. Advantage is only temporary  Root of problem is failure to distinguish btw operational effectiveness and strategy  OP effectiveness and strategy work in different ways  Op effectiveness means performing similar activities better than rivals perform them o Includes and Not limited to efficiency o Done through TQM, time-based competition, benchmarking, improve customer satisfaction, embrace continuous improvement, change management, learning organization o Outsourcing, virtual organization o Efficiency o Economies of scale  more profitable o Eliminating waste o Pervasive  table stake for being in business  Strategic positioning is performing different activities from rivals’ or performing similar activities in different ways  OE competition shifts productivity frontier outward, effectively raising the bar for everyone  OE is in sufficient, easy to imitate, worse if they are just generic solutions o When everyone in industry is investing in similar tech, no one profits o Competitive convergence: we are imitating our rivals; the more benchmarking companies do, the more they look alike therefore companies merge due to lack of strategic vision (INDUSTRY CONSOLIDATION) o Comps face diminishing returns after gains in operational effectiveness o Process improvements are very easy to copy by others and short term (there’s no point in only pursuing that) SYMPTOMS: Prices will start to decline, diminishing returns  Strategy rests on unique activities vs. your competitors  Strategic positions can be based on customers’ needs (NEEDS-BASED POSITIONING), customers’ accessibility (ACCESS-based positioning…customer geography or scale), or the variety of a company’s products and services (VARIETY-BASED POSITIONING)  Variety and access positioning do not rely on any customer differences, but accompany needs differences  Strategy is the creation of a unique and valuable position, involving a different set of activities. o NO ONE IDEAL POSITION, NO STRATEGY  Sustainable strategic position requires Trade-Offs (they create the need for choice and purposefully limit what a company offers)  Fit drives both comp adv. And sustainability o Strategy is about combining activities o Strategic positions should have a horizon of a decade or more, not of a single planning cycle At manage
More Less

Related notes for BU481

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit