BUSI 4050 Study Guide - Midterm Guide: Strategic Thinking, Swot Analysis, Competitive Advantage
3 Mar 2016
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Document Summary
Strategy is an integrated plan of action for achieving the basic objectives of the enterprise. Strategy is a firm"s theory about the creation of unique and valuable position to gain competitive advantages. It is a pattern of resource allocation that enables firms to improve their performance. An organization, such as a firm, a government or a political party has much of their resources to allocate to each of these activities. Competitive advantage- the ability to create more economic value than competitors. Competitive advantage is the result of doing something different and/ or better than competitors. If all firm"s strategies were the same, no firm would have a competitive advantage. *two differences- people willing to pay a premium; lower costs of production/ distribution. Competitive disadvantage- people may have an aversion to the firm"s offering; the firm may have a cost disadvantage; a firm may have outdated technology/ equipment; and a firm may have a negative reputation.
