MGTS3301 Lecture Notes - Lecture 1: Competitive Advantage, Strategic Management, Competitor Analysis
Document Summary
Week 1 - introduction to strategy and external environment analysis. Strategy is an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage. When choosing a strategy, firms make choices among competing alternatives as to how they will pursue strategic competitiveness. Firms with a competitive advantage have an opportunity to earn above-average returns. Above-average returns are returns in excess of what an investor expects to earn from other investments with a similar amount of risk. Firms without a competitive advantage or that are competing in an unattractive industry earn, at best, average returns. Average returns are returns equal to those an investor expects to earn from other investments with a similar amount of risk. Strategic management process is the full set of commitments, decisions and actions required for a firm to achieve strategic competitiveness and earn above-average returns (see figure on next slide)
