53714708-Simplified-Notes - CHAPTER 1: STRATEGY &...

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IMPORTANCE Strategy - Competitive moves , business approaches - action plan Grow the business Attract and please customers Compete successfully Conduct operations Achieve target levels of organizational performance Strategic choices about “how” are based on Trial-and-error organizational learning about what has worked and what has not worked Management’s appetite for taking risks Managerial analysis and strategic thinking about how best to proceed, given market conditions and the company’s circumstances Key Elements of a Successful Strategy - Developing a successful strategy hinges on making competitive moves - Involves developing a distinctive “aha” element Attract customers Produce a competitive edge Sustainable Competitive Advantage - attractive number of buyers prefer its products/services over those of rivals - basis for this preference can be maintained over time Four Best Strategic Approaches to Building Sustainable Competitive Advantage - low-cost provider - differentiating features - narrow market niche - expertise and resource strengths not easily imitated or matched by rivals Why Do Strategies Evolve Shifting market conditions Technological breakthroughs Fresh moves of competitors Evolving customer preferences Emerging market opportunities New ideas to improve strategy Crisis situations Strategy-making Studying market trends and competitors’ actions Keen observation of customer needs Scrutinizing business possibilities based on new technologies Building firm’s market position via acquisitions or new product introductions Pursuing ways to strengthen firm’s competitive capabilities Proactively searching out opportunities to do new/ existing things Criteria of an ethical strategy Does not entail actions and behaviors that cross the line from “should do” to “should not do” and “unsavory” or “shady” and Allows management to fulfill its ethical duties to all stakeholders Firm’s Ethical Responsibilities to Its Stakeholders -Owners/shareholders -Employees -Customers -Suppliers -Community Role of Senior Executives: Linking Strategy with Ethics Forbid pursuit of ethically questionable business opportunities Insist all aspects of company strategy reflect high ethical standards Make it clear all employees are expected to act with integrity Install organizational checks and balances to Monitor behavior Enforce ethical codes of conduct Provide guidance to employees in gray areas Display genuine commitment to conduct business activities ethically Business Model - How do we make money in this business? - capable of delivering good bottom-line
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This note was uploaded on 02/23/2012 for the course MGMT 6359 taught by Professor Wang during the Fall '11 term at University of Houston-Victoria.

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53714708-Simplified-Notes - CHAPTER 1: STRATEGY &...

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