BUS 010 Lecture Notes - Lecture 4: Moe Williams, W. M. Keck Observatory, Corporate Social Responsibility
Document Summary
Reasons why we need a strategic approach: continuous competition, limited resources. The main purpose of strategy: making the best choices, focusing the organization. Every strategy you take must be complementary to the others. Strategic decisions share 3 common characteristics: they are important, they involve a significant commitment of resources, they are not easily reversible. Corporate strategy: industry attractiveness: which industries should we be in, decided by the board of directors/corporate management. Business strategy: competitive advantage: how should we compete, for example, how you compete in locomotives or lightbulbs. The game plan should comprise of three components of strategy: objectives, scope, advantage. Strategy is not operational effectiveness: operational effectiveness. Do the same thing better: strategic positioning. Creating a unique and sustainable competitive position. Do things differently to achieve a different purpose. Planning is about doing things right: putting strategy into action, creates order and discipline, supports execution. Value is the gap between the cost and the price.
