BPL 5100H Study Guide - Fall 2018, Comprehensive Midterm Notes - Value Proposition, Switching Barriers, Strategic Management
12 Oct 2018
School
Department
Course
Professor
BPL 5100H
MIDTERM EXAM
STUDY GUIDE
Fall 2018
You have been called for an interview for a position that involves strategic
management of a company. You need to think through the following issues:
• What is the purpose of strategic management?
• What and who does it involve?
• How important is it?
virtually everything is mgt
• strategic is subset of mgt
• setting direction for company
corporate planning
reacting to environmental changes
being proactive
strategy comes from -lead an army
• German
• Chinese “Art of War”
find more resources at oneclass.com
find more resources at oneclass.com
strategy/tactics are different
who are ur customers
what needs are u trying to satisfy
how will they be satisfied
• operational effectiveness
economic profits lower than accounting profits
opportunity cost → cost of capital (investing $$ into business)
• decision making: enter one market or another
• help u decide whether u want to do A or B
• economic profits better indicator of shareholder value
Acct Profits
ROIC % (higher than r then ur making positive economic profits) ( if = to r
then making 0 economic profits) (if less than r probably could use
resources in a better way_
compare it with cost of capital r
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
You have been called for an interview for a position that involves strategic management of a company. Economic profits are dependent on finding an attractive competitive position and gaining a competitive advantage (by providing more value for price) over rivals with a similar position. False: the most inspiring corporate visions usually involve financial targets. Core values guidelines could also be business values utilities not the most exciting place to work if ur a monopoly tho, why do u care if its competitive customers do matter! Capital/ sales ratio. it should lower it you don"t have 26903 blocked up in the system. Although the efficiency, size, and speed of ocean liners was constantly improving, the economics of ocean freight was constantly declining. The faster ships were travelling and the more cargo they were carrying, the more unprofitable the shipping companies became. Shipping containers were the answer opportunities and threats should come from porter"s 5 forces.
