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strategy course summary
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LernblattDie wichtigsten Konzepte aus jeder Strategy
COURSE UNIT CONTENT
- Introduction to strategy: What is strategy?
- Internal and external analysis
- Business level strategy and Blue Ocean strategy
- Competitive strategy =Actions & responses to competition
- Competitive dynamics
- Corporate level strategy: Vertical integration and product diversification
- Corporate level strategy: How to expand and accumulate new resources (Build, Buy, Borrow)
- International strategy: Adaptation vs standardization
- International Strategy: Entry modes
- Strategy implementation: How to manage subsidiaries / Organizational structure
- Corporate Governance, CSR, and Strategy
Difference between Business level & Corporate level:
Business level =
How to compete within one product market: Competitive scope:broad/narrow & advantage
(cost/differentiation)
Corporate level = scope and boundaries oft he firm
Business diversification (horizontal), vertical diversification, geographic/international expansion
Business Diversification levels (single business, dominant, related constrained, related linked, unrelated)
,Goal of all strategies =
1. achieve and sustain competitive advantage
2. achieve above average returns
Two main views on earning AARs (Above average returns)
1. Industrial organization (I/O) external perspective
2. Resource based view (RBV) internal perspective
1. I/O Model: (focus on opportunities and threats: External environment)
1. Study the external environment (Industry environment: 5 forces)
2. Locate attractive industry (to earn above-average returns)
3. Strategy Formulation
4. Assets & Skills
5. Strategy Implementation
6. Superior Returns
model suggests that firms can earn above-average returns by producing either standardized goods or
services at costs below those of competitors (a cost leader-
ship strategy) or by producing differentiated goods or services for which customers are
willing to pay a price premium (a differentiation strategy). The cost leadership and prod-
uct differentiation strategies are discussed more fully in Chapter 4. The fact that the fast
,food industry faces “higher commodity costs, fiercer competition, a restaurant industry
showing little to no growth, and a strapped lower-income consumer,”82 suggests that fast
food giant McDonald’s is competing in a relatively unattractive industry.
As shown in Figure 1.2, the I/O model suggests that above-average returns are earned
when firms are able to effectively study the external environment as the foundation for
identifying an attractive industry and implementing the appropriate strategy. For exam-
ple, in some industries, firms can reduce competitive rivalry and erect barriers to entry
, 2. RBV Model (internal perspective based on resources, capalities, core competencies)
Resources = inputs into a firm’s production process, such as capital equipment, the skills of individual
employees, patents, finances, and talented managers.
A capability = the capacity for a set of resources to perform a task or an activity in an integrative
manner.
Core competencies are capabilities that serve as a source of competitive advantage for a firm over its
rivals.
Core competencies = Source for competitive advantage
And after that locate attractive industry
Strategy formulation & implementation
Superior returns
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