SCM 301 Chapter 2: Chapter 2 General Overview
Document Summary
Structural elements: tangible resources, such as buildings, equipment, and information technology. Typically require large capital investments that are difficult to reverse. These elements are changed infrequently and only after much deliberation. Infrastructural element: people, policies, decision rules, and organizational structure choices made by the firm. Strategy: a mechanism by which a business coordinates its decisions regarding structural and infrastructural elements. Most organizations have more than one level of strategy, from upper level business strategies to more detailed, functional-level strategies. It describes what is important to the organization, called its core values, and identifies the organization"s domain. Business strategy: identifies a firm"s targeted customers and sets time frames and performance objectives for the business. Core competency: an organizational strength or ability, developed over a long period, developed over a long period, that customers find valuable and competitors find difficult or even impossible to copy. Can take many forms and even shift over time.
