Overview Business Strategy Course

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Oversigt over Business Strategy

Corporate strategy (where to compete) defines the scope of the firm in terms of the industries and markets in which it competes. E.g. choices of diversification and vertical integration. Business strategy (how to compete) is concerned with how the firm competes within a particular industry or market. If a firm is to prosper within its industry it must establish a CA over its rivals.

Lecture 1

Lecture 2- The Concept of Strategy
Sustainablity of a strategy The sustainability of superior product market positions hinges on (er afhængig af) commitment to sticky factors. (Commitment, scarcity, appropriation) Ghemewhat (imiation) * Framework to analyze poistions implied by strategic options to avoid to tackle the complexities of commitment.

Lecture 3 - Goals, Values, and Performance:
* four factors are crucial to achieving a successful strategy: * Goals that are simple, consistent, and long term
* Profound understanding of the competitive environment * Objective appraisal of resources (exploiting internal strengths while protecting areas of weakness) * Effective implementation

* Role of strategy:Strategy as decision support, Strategy as a coordinating device: and Strategy as Target CSR
* Justifications for CSR: Moral obligation (be good citizenz), Sustainability, License to operate, Reputation. (weakness focus on tension instead of interdepence on society and organization * Sources can be opportunies for CSR

* the quantity and quality of available business inputs– human resources, for example, or transportation infrastructure * the rules and incentives that govern competition–such as policies that protect intellectual property, ensure transparency, safeguard against corruption andencourage investment; * the size and sophistication of local demand, influenced by such things as standards for product quality and safety, consumer rights, and fairness in government purchasing * The local availability of supporting industries,

* Responsive vs. strategic CSR (Porter article) Strategic CSR also unlocks shared value by investing in social aspects of context that strengthen company competitiveness * When and why to use CSR BARNETT article

* Types of the coroprate resource allocation (Agency loss vs. CSR see figure Barnett) * Stakeholder influence capacity (SIC)

Competitive Advantage and CSR (Porter and Kramer 2006)

Lecture 4 Industry analysis:
* Porter’s framework is useful to understand competition but not deep enough - we need to look at: Game theory and particular segments and strategic groups * Dynamic Competition: Creative Destruction and Hyper competition * Game Theory offers two valuable contributions to strategic management: * It permits the framing of strategic decisions

* It can predict the outcome of competitive situations and identify optimal strategic choices * Cooperation, Deterrence and commitment (hard aggressive competion, soft moderate competion) * Where companies compete on price, game theory shows that that they tend to match one another’s price changes. Hence, under price adjustments, hard commitments (such as a commitment to cut price) tend to have a negative profit impact and soft commitments (such as a commitment to raise prices) have a positive impact. * Where companies compete on output, game theory shows that increases in output of one firm results in output reductions by the other. Hence, under quantity adjustments, a hard commitment (for example, a commitment to build new plants) will tend to have a positive effect on the committing firm’s profitability because it will tend to be met by the other firms reducing their output. *

* Industry structures: Perfect competion, monopolistic, duopoly, monopol, oligopoly * Porters five forces Grant chapter 4
* Applying industry analysis
* Describing...
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