Strategy Class Study Guide
SI422 Midterm Review Guide
Module #1: Introduction____________________________________________________________________
Operational effectiveness
-The extent to which a firm performs similar activities better than rivals
-Necessary but NOT sufficient for long-term competitive advantage
Strategy
-Refers to performing different activities from rivals or performing them in a different way
-Choose the right configuration of activities, incentives, systems.
-Make the right trade-offs
-Strategy rests on unique activities
WINNER if you have a strategy that fits the environment -A cogent configuration of activities, incentives, systems that supports successful positions and makes the right trade-offs
Porter: Firms can ONLY achieve sustainable competitive advantage if they have BOTH operations effectiveness and superior strategy.
Strategic Activities Map: Picture map that identifies key activities of a firm (their tradeoffs and the investments that they make) and identifies the linkage between them. The “web” of activities makes company strategies
Effective strategy requires tradeoff
Profits vary across industry and within industry, strategists’ job is to explain why industries & firms have high or low profits and help make recommendations to firms about what strategic plans may help improve their profitability.
Grant: “Strategy is not a detailed plan or program of instructions; it is a unifying theme that gives a coherence and direction to the actions and decisions of an individual or an organization.”
Strategy is designed to help the firm use its internal resources and characteristic to deal with its industry and competitive environment. Firm-Level Resources: -Competitive Positioning -Corporate Strategy -Implementation & Ethics -Technology Strategy
Strategy must FIT with the firm and its environment.
Grant: Differences between Corporate and Business Unit Strategy
Corporate (Top Management):
Where to play? What
Module #1: Introduction____________________________________________________________________
Operational effectiveness
-The extent to which a firm performs similar activities better than rivals
-Necessary but NOT sufficient for long-term competitive advantage
Strategy
-Refers to performing different activities from rivals or performing them in a different way
-Choose the right configuration of activities, incentives, systems.
-Make the right trade-offs
-Strategy rests on unique activities
WINNER if you have a strategy that fits the environment -A cogent configuration of activities, incentives, systems that supports successful positions and makes the right trade-offs
Porter: Firms can ONLY achieve sustainable competitive advantage if they have BOTH operations effectiveness and superior strategy.
Strategic Activities Map: Picture map that identifies key activities of a firm (their tradeoffs and the investments that they make) and identifies the linkage between them. The “web” of activities makes company strategies
Effective strategy requires tradeoff
Profits vary across industry and within industry, strategists’ job is to explain why industries & firms have high or low profits and help make recommendations to firms about what strategic plans may help improve their profitability.
Grant: “Strategy is not a detailed plan or program of instructions; it is a unifying theme that gives a coherence and direction to the actions and decisions of an individual or an organization.”
Strategy is designed to help the firm use its internal resources and characteristic to deal with its industry and competitive environment. Firm-Level Resources: -Competitive Positioning -Corporate Strategy -Implementation & Ethics -Technology Strategy
Strategy must FIT with the firm and its environment.
Grant: Differences between Corporate and Business Unit Strategy
Corporate (Top Management):
Where to play? What