ECON 1 Lecture Notes - Lecture 19: Capital Budgeting, Net Present Value, Strategic Management
Document Summary
Defining strategy: the means by which firms/individuals/organizations achieve their objectives. Corporate level strategy: strategies regarding a group of activities or business units. Business level strategy: strategies of each individual business unit. Strategy is about future direction and how it aims to get there. Is a distinction between looking ahead and looking backward. Intended strategy= a plan (prescriptive) according to plan. Unrealized= parts of the plan that failed. Emergent= unplanned and spontaneous, can occur due to: Internal reasons: learning, mistakes, new ideas: external reasons: products become popular in unexpected markets, technological breakthrough. Realized strategies= is what really happened (planned+emergent) (descriptive) Dimension of strategic management (the management of strategy). It has 3 dimensions: process: how should you develop/formulate strategy, content: what strategic actions is the organizations going to perform, context: process and content should take account of the organization and organizational environment. Formulating strategy: deciding on where the organization intends to be in the future and how it aims to get there.
