ADMS 1000 Lecture Notes - Lecture 5: Starbucks, Learning Curve, Imitation

• School: York University
• Department: Administrative Studies
• Course: ADMS 1000
• Professor: John Paschakis

Document Summary

Strategic management consists of the analysis, decisions and implementations and evaluations a firm undertakes to create and sustain its competitive advantage. Strategy: action plan, short term/ operational and long term, quantifiable. Goal: the purpose of strategy, maximize shareholder wealth. The strategy is created by senior analysts: they analyze the current state, then the goal state, devise a plan to get the. Threats of new entrants: is the threat high or low, barriers to entry. Threat of suppliers: labour, raw materials. The number of incumbents relative to the number of buyers. Any product that can be used in the place of another. Limitations of the 5 forces mode: assumes power relationships are the same in each force, time-based. Customer service: trained staff, good supply chains. Internal strengths and weaknesses can be found through vrio analysis. External opportunities and threats can be found through 5 forces model. Business level: competitive strategy in a given market, cost leadership.