Week 2 Corporate Strategy Resources and Rents

Week 2 Corporate Strategy Resources and Rents - Week 2...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Week 2 Resources & Rent BCG growth/ share matrix HIGH Relative market share (competitive strength) LOW STAR ? CASH COW DOG (Cash usage) LOW Star generate most profit and requires most $ ? generate little profit, BUT requires more $ Cash cow generate most profit and requies little $ Dog generate least profit and requires least $ Resource based view (RBV) of firm (1990s): Corporations were fortfolios of competencies rather than simply portfolios of business. Competitive advantage---- the ability of a firm outperform rivals. Economic profit () = Accounting profit + opportunity cost Value creation: Value crated= comsumer surplus + producer surplus (Profit) = (B-P) + (P-C) B consumer maximum willingness to pay P selling perice C cost of production Resources and Rents 1. Tangibles plants, equipmenta, raw materials. E.g. Rios operation is mainly based on the tangible assets of the company. And they are considered as a very important part in its business operation. assets of the company....
View Full Document

This note was uploaded on 08/11/2009 for the course ECOF 3001 taught by Professor - during the Three '09 term at University of Sydney.

Page1 / 2

Week 2 Corporate Strategy Resources and Rents - Week 2...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online