AFM433 Lecture Notes - Lecture 3: Balanced Scorecard, Vertical Integration, Zappos

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM433
• Professor: Nancy Ann Vanden Bosch

Document Summary

Alignment: a well-understood statement of strategy aligns behavior within the business. Elements of a strategy statement: three critical components of a good strategy statement: objective: the ends you are trying to achieve. Should be specific, measurable, time-bound, and have a single goal (outcome or result: scope: the domain you will operate in. Includes three dimensions: customer or offering, geographic location, and vertical integration: advantage: the means by which you will achieve the objective; what your business will do differently from or bet ter than others. Consists of two parts: the customer value proposition, and the unique activities that allow for the delivery of the value proposition. Trade-offs: the trade-offs companies make are what distinguish them strategically from other firms. Mission statement: spells out the underlying motivation for being in and staying in the business in the first place. Values: what a business believes and how it will behave.