BUS 478 Chapter Notes - Chapter 1: Organizational Ethics, Organizational Culture, World Economy

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 478
• Professor: Da Silva Rui Jorge Basto

Document Summary

Strategic competitiveness: is achieved when a firm successfully formulates and implements a value creating strategy. Strategy: a strategy is an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage. A firm has a competitive advantage when it implements a strategy that creates superior value for customers and competitors are unable to duplicate or find too costly to try to imitate. An organization can be confident that its strategy has resulted in one or more useful competitive advantages only after competitors" efforts to duplicate its strategy have ceased or failed. Above average returns are returners in excess of what an investor expects to earn from other investments with a similar amount of risk. Risk is an investor"s uncertainty about the economic gains or losses that will result from a particular investment. Understanding how to exploit a competitive advantage is important for firms seeking to earn above- average returns.