Académique Documents
Professionnel Documents
Culture Documents
McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
The Wisdom of Choice
– Chester Barnard
(former CEO of New Jersey Bell Telephone)
Palm Video
EXHIBIT 1.2 What is Strategy?
Definition: Strategy is the quest to create, capture and
sustain competitive advantage.
REVENUE drivers
COST drivers
RISK drivers
1–11
Value and Cost Drivers
Figure 2.5
LO 1-1 Define competitive advantage, sustainable competitive advantage,
competitive disadvantage, and competitive parity.
LO 1-2 Define strategy and explain its role in a firm’s quest for competitive
advantage.
LO 1-3 Explain the role of firm effects and industry effects in
determining firm performance.
LO 1-4 Describe the role of corporate, business, and functional
managers in strategy formulation and implementation.
LO 1-5 Outline how business models put strategy into action.
LO 1-6 Describe and assess the opportunities and challenges
managers face in the 21st century.
LO 1-7 Critically evaluate the role that different stakeholders play in the
firm’s quest for competitive advantage.
1–13
EXHIBIT 1.1 Industry, Firm, and Other Effects Explaining Superior Firm Performance
1–14
Sources of Superior Profitability
INDUSTRY
ATTRACTIVENESS
Which CORPORATE
RATE OF PROFIT businesses STRATEGY
ABOVE THE should we be
COMPETITIVE in?
LEVEL
How do we
make
money? COMPETITIVE
ADVANTAGE
15
Strategy Across the Levels
• Where to Compete? • CORPORATE
Should GE move more STRATEGY
aggressively into the
health care industry?
Microsoft
Operating Software Online
Systems Apps Search
Google
1–20
Strategy in the 21st Century
1–21
EXHIBIT 1.5 Accelerating Speed of Technological Change
1–22
Strategy in the 21st Century
1–24
Strategy in the 21st Century
• Future Industries
Health Care
Green Economy
Potentially
large growth in energy efficiency
and technologies (e.g., solar panels)
WEB 2.0
Interactivity
and using collective intelligence on the
Internet. Subject to "network externalities"
1–25
STRATEGY HIGHLIGHT 1.1 Threadless: Leveraging Crowdsourcing
to Design Cool T-Shirts
Threadless Interview
1–26
LO 1-1 Define competitive advantage, sustainable competitive advantage,
competitive disadvantage, and competitive parity.
LO 1-2 Define strategy and explain its role in a firm’s quest for competitive
advantage.
LO 1-3 Explain the role of firm effects and industry effects in determining
firm performance.
LO 1-4 Describe the role of corporate, business, and functional managers
in strategy formulation and implementation.
LO 1-5 Outline how business models put strategy into action.
LO 1-6 Describe and assess the opportunities and challenges managers
face in the 21st century.
LO 1-7 Critically evaluate the role that different stakeholders play in
the firm’s quest for competitive advantage.
1–27
The Manager’s Role in Balancing Expectations
• Business Roundtable:
“Balancing the shareholder’s expectations of maximum
return against other priorities is one of the fundamental
problems confronting corporate management.”
1–29
Our Learning Goals:
Pushing Down Through Bloom’s Taxonomy
1. Knowledge: remember
remember 4. Analysis: break
break material
material
material;
material; know
know terms,
terms, facts,
facts, into
into components
components & & understand
understand
procedures, structure;
structure; recognize
recognize logical
logical
procedures, basic
basic concepts
concepts
fallacies,
fallacies, distinguish
distinguish fact
fact and
and
2. Comprehension: inference,
inference, evaluate
data
evaluate relevancy
relevancy of
of
grasp data
grasp meaning;
meaning; understand
understand
facts,
facts, interpret
interpret charts,
charts, 5. Synthesis: integrate
integrate parts
parts
translate
translate verbal
verbal to
to math
math to
to make
make aa new
new whole,
whole, integrate
integrate
estimate
estimate consequences
consequences learning
learning to
to solve
solve aa problem
problem
3. Application: use
use 6. Evaluations: judge
judge logical
logical
material
material in
in new
new situations;
situations; consistency,
consistency, judge
judge whether
whether
apply conclusions
conclusions are
are supported
supported by
by
apply concepts
concepts toto real
real
facts
facts
situations,
situations, follow
follow aa procedure
procedure
30
Most Frequently Cited Skills of Effective Managers
06. Delegating