Class notes
COLLEGE NOTES BMO21306 (EVERYTHING YOU NEED TO KNOW)
- Course
- Institution
All you need to know, I had an 8 myself!
[Show more]
Seller
Follow
isavbergen
Content preview
Advanced Management & MarketingLecture 1 Introducing Strategy
Good strategy: compromise, competitive success vs corporate strategy
Strategy decisions are likely to be complex, uncertain, affect daily decisions, integrated
approach, considerable change
Strategy: long term direction of the organization
Three horizons for strategy: 1. Extend and defend core business (short) 2. Build emerging
businesses (mid) 3. Create viable options (long)
Strategy is to define & express the motivating purpose of an organization to stakeholders
Motivating purpose: mission statement (why is the company existing) + vision statement
(what do you want to achieve in future) + statements of corporate values (principles, do not
change) + statement of objectives (outcomes that are to be achieved)
Goals (vision, mission, objectives) + scope (domain of the organization’s activities -> who,
where, how much ourselves) + advantage (competitive advantage)
Levels of strategy: corporate level (overall scope of an organization + how value is added to
business units) + business-level (competitive strategy, particular market) + functional
strategy (managing resources, processes, and people)
Exploring strategy: strategic position (environment + stakeholder + capability) + strategic
choices (directions and methods) + strategy in action (put into practice, leadership etc.)
Lecture 2 Marketing 1
Strategic marketing -> choose the value
Tactical marketing -> provide the value + communicate the value
Differentiation: creating differences between focal offering and its main competitors
Positioning: differentiating in the minds of target customers
Levels of competition: product form (brand is better than other) + product category
(product form is best in category) + generic (satisfy needs the best) + budget (most
appropriate way to spend money)
Brand switching analysis -> switching matrix (from current to future)
Standardized residual: (O-E)/ squared root E
Standardized residual > 1.96 in absolute value is significant. Positive = loyal customers
Lecture 4 The Business Environment & Industry and sector analysis
Societal influences macro -> PESTEL: Political Economic Social Technological
Ecological/Environmental Legal -> future impact + different impact
Political factors: role of state, exposure to civil society organizations, governmental political
development
Economic factors: business cycles, interest rates, personal disposable income, exchange
rates. Vulnerable to economic cycles -> discretionary spend industries (about savings ->
housing, cars) + high fixed cost industries (airlines + hotels sector)
Social factors: demographics, wealth distribution, geography, culture, social networks
Technological factors: new discoveries and technology developments
Legal factors: labor & consumer regulations, taxation & reporting requirements, rules on
ownership, foreign trade regulations, competition regulations
, Forecasting in conditions of uncertainty: PESTEL factors help, accurate forecasting is very
difficult -> single-point forecast (one outcome) + range forecast (likeliness of certain
outcomes) + alternative futures (multiple exclusive outcomes)
Scenario process: define scope -> identify key drivers (PESTEL factors)-> develop instinct
scenario stories (plausible, alternative views of future) -> identify impacts -> monitor
progress
An industry is a group of firms producing products and services that are essentially the same
(supply side, automobiles, or airlines)
A market is a group of customers for specific products or services that are essentially the
same (demand side, market for luxury cars in Germany)
Industry analysis: define industry -> identify actors of each of the five forces -> determine
underlying factors -> asses overall industry structure & attractiveness -> determine how to
position
Porter’s 5-forces frameworks: threat of entry + threat of substitutes + bargaining power of
buyers + bargaining power of suppliers + extent of rivalry between competitions
5 forces are high -> less attractive for lacking profit potential
Bargaining power of buyers high: buyers are concentrated, have low switching costs, can
supply their own inputs, lower buyer profits & low impact on their quality
Bargaining power of suppliers high: suppliers are concentrated, switching costs are high for
focal firm, suppliers can integrate forward, provide a specialist or rare input
Backed integration: replacing the supplier by doing it on your own
Threat of substitutes: similar benefit but have a different nature from outside the industry.
High when price/performance ratio is better, substitute benefits from an innovation, extra-
industry effects
Threat of entry: factors that need to be overcome by new entrants if they are to compete ->
economies of scale, access to supply channels, differentiation, government restrictions
Threat of potential entrants (low) is inverse to barriers against entrants (high)
Rivalry between existing competition: similar products, same customer, same
industry/market -> depends on competitor concentration & balance, industry growth rate
Product life cycle: introduction (low sales, high costs) -> growth (increasing sales, reducing
costs) -> maturity (constant sales, reducing costs) -> decline (reducing sales, constant costs)
Company life cycle: concept creation -> concept development -> market development ->
business optimization -> re-inventing business / harvesting
Industry life cycle: development (low rivalry) -> growth (low rivalry) -> shake out (increasing
rivalry) -> maturing (strong buyers) -> decline (extreme rivalry)
Technology/marketing adoption cycle: innovators -> early adopters (chasm in between) ->
early majority -> late majority -> laggards
Strategic groups: organization within an industry with similar strategic characteristics,
following similar strategies of competing on similar bases (you want to know everything of
them)
Understanding competition (rather than whole industry) -> analyze strategic opportunities
(strategic spaces) -> analysis of mobility barriers (can be overcome or can be build)
Lecture 5 Marketing 2
Market segmentation: the subdividing of a market into distinct subsets of customers
Segments: members are different between segments but similar within
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller isavbergen. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $4.33. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
78075 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now