CHAPTER ONE:

CHAPTER TWO:

* Strategy is a planned process whereby organizations can map out a set of objectives and methods of meeting this objectives. * Corporate strategies is a company-wide strategies that are concerned with the long-term view of the organization
* Business strategies focus on one line of business; building a strong competitive position
* Three corporate strategies (Restructuring, Growth and
Stability/Maintenance)
* Strategy is like a game plan in sports or an airline’s flight plan. It is important to have a plan that moves towards goal achievement, however, there must be flexibility and adaptability to adjust to internal and external environmental factors * Mission statement: an articulation of the purpose of the organization and the value it creates for customers
* Vision: Defines the organization’s long-term goals. The vision statements asks the questions “Where are we going?” * Value Statement: the basic beliefs that govern individual and group behaviour in an organization.
* Michael Porter’s Model
* Low Cost Provider Strategy: Low cost - in demand in the market * Broad Differential Strategy: High cost - in demand in the market * Best Cost Provider Strategy: Low/High cost - in demand in the market
* Focus Niche Low Cost
* Focus Niche Broad Differentiation
* Competitive Advantage - the characteristics of a firm that enable to earn higher profits that its competitors
* Tangible Assets - easiest to value and the only ones that appear on the company’s balance sheet, such as land, raw materials, location and cash
* Intangible Assets - these assets are not consumed, and may even grow in value and include company reputation, brands and patents.
* Capabilities - a complex combination of people and processes which represent the firm’s capacity to deploy resources that have been purposely integrated to achieve