INTB 1203 Lecture Notes - Lecture 16: General Motors, American Airlines, Customer Relationship Management
16 Dec 2016
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Strategy: actions that managers take to attain the firm"s goals. Profitability: rate of return on invested capital. Profit growth: percentage increase in net profits over time. Strategic positioning on the efficiency frontier: strategic choice between value creation (differentiation) and cost. 12. 3, p. 337 note reverse cost axis: alignment of internal operations and structure, example of hotel industry (four seasons, marriott, starwood) Figure 12. 3 strategic choice in the international hotel industry: low cost, high cost, efficiency frontier, starwood, marriott, four seasons. Figure 12. 8: pressures for cost reductions and local responsiveness. Pressures for cost reductions: low product differentiation, serves universal needs (commodities, silicon chips, competitors based in low-cost locations, excess industry capacity, low switching costs for consumers. Ib in the news (cid:498)when bad customer service yields business success(cid:499) 3 major companies in the united states are reaching new highs in terms of. These companies rank very low in terms of customer service.
