Chapter 1A company is said to have acompetitive advantageover its rivals when its profitability and profit growth are greater than the average of other companies competing for the same set of customers. The higher its profitability and profit growth relative to rivals, the greater its competitive advantage will be. A company has asustained competitive advantagewhen its strategies enable it to maintain above-average profitability and profit growth for a number of years. (1-2b)Strategic Management (1-3)there are two primary types of managers:general managers, who bear responsibility for the overall performance of the company or for one of its major, self-contained subunits or divisions, andfunctional managers, who are responsible for supervising a particular function; that is, a task, an activity, or an operation such as accounting, marketing, research and development (R&D), information technology, or logistics. Put differently, general managers have profit-and-loss responsibility for a product, a business, or the company as a wholeThe corporate levelof management consists of the chief executive officer (CEO), other senior executives, and corporate staff.business level is a self-contained division (with its own functions—forexample, finance, purchasing, production, and marketing departments)that provides a product or service for a particular market.Functional-level managers are responsible for the specific business functions or operations (human resources, purchasing, product development, logistics, production, customer service, and so on) found within a company or one of its divisions.multidivisional companyFug1.3
Performance in Nonprofit Enterprises (1-2d)Well-constructed goals(1-5 includingfour main characteristics)A company’smissiondescribes what the company does. (1-4b)The essential purpose of the external analysisis to identify strategic opportunities and threats within the organization’s operating environment that will affect how it pursues its mission. (1-5a)Internal analysis, the third component of the strategic planning process, focuses on reviewing the resources, capabilities, and competencies of a company in order to identify its strengths and weaknesses.
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- Fall '19