ADM 3337 Chapter Notes - Chapter 2: Operational Excellence, Competitive Advantage, Costcutter

• School: University of Ottawa
• Department: Administration
• Course: ADM 3337
• Professor: Katie Curran

Document Summary

Chapter 2 strategy: the totality of decisions. Compensation strategies at google, medtronic, and merrill lynch. Fully present at work and in personal lives. Market value of jobs establishes overall pay parameters. Job sized on four factors: knowledge/skill, complexity, business impact, strategic value. Bonus, based on individual, unit, and company success. In less-profitable years, top pe(cid:396)fo(cid:396)(cid:373)e(cid:396)s" (cid:271)o(cid:374)uses de(cid:272)(cid:396)ease much less than poorer pe(cid:396)fo(cid:396)(cid:373)e(cid:396)s". Strategic perspective: a focus on compensation decisions that help the organization gain and sustain competitive advantage. Strategy: the fundamental business decisions an organization has made to achieve its strategic objectives, such as what business to be in and how to obtain competitive advantage. An organization defines its strategy through the trade-offs it makes in choosing what and what not to do. Competitive advantage: a (cid:271)usi(cid:374)ess p(cid:396)a(cid:272)ti(cid:272)e o(cid:396) p(cid:396)o(cid:272)ess that (cid:396)esults i(cid:374) (cid:271)ette(cid:396) pe(cid:396)fo(cid:396)(cid:373)a(cid:374)(cid:272)e tha(cid:374) o(cid:374)e"s (cid:272)o(cid:373)petitio(cid:374) Ultimate purpose of strategy is to gain and sustain competitive advantage. Innovator: increase product complexity and shorten product life cycle.