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Strategic Management (I/O Method of above average returns (Summary (Study…

- - - - Starts by having the right partners - when partners no have same vision and values, dissolution might be necessary
      - Good idea to have a prenup agreement from the start
      - For any business to sustain success, they must have a vision that guides to do more and more for the consumer and society
      - Having a clear vision (what a business is trying to achieve and how it creates value) not only enables employees to focus and prioritize, it helps them develop and find fulfillment.
- - - - Expect preservation + enhancement of wealth
      - Dissastified debtors might ask for tougher conditions next time
      - Dissatisfied shareholders might pressurize or sell stock
    - - Customers - Highest quality, lowest prices
      - Suppliers - Highest sustainable orders
      - Gov - Most stable employers + tax payers with minimal load on public support systems
      - Unions - secure jobs + desirable work conditions
      - To summarize - they demand atleast a balance b/w return to Capital MS and their returns
    - - Dynamic, stimulating, rewarding work enviro
      - Prefer growing enviro - can grow skills
      - Develop skills, specially at the global level with international assignments
- - - - Global Econ
        
        An economy in which goods, services, people, skills and ideas move freely across geographic borders.
        Relatively unfettered by artificial constraints like tariffs
        
        Even domestic firms to pull up boots, global firms tend to have superior quality given free movement of labour
        
        Emerging economies are key players to be considered
  - - - Tech diffusion - rate at which tech becomes available and used - increasing superbly in prev 20 years
      - Perpetual innovation - how rapidly and consistently more info intensive technologies replace older ones.
        Here, if diffusion is high, speed to market becomes super useful
      - To inc diffusion, firms can build into their products wisely the new technology
      - Disruptive tech - That destroys value of existing tech and creates a new market
      - When disruptive tech comes, some incumbents of industry die out while others adapt
    - - PCs, Cell phones, AI, Virtual reality, big data, social media etc - few examples that have changed how we effectively and efficiently access and use info
      - IT - Gives small firms more flexibility in competing with larger firms
      - IT has a declining cost and inc accessibiity
    - - Knowledge - info, intelligence, expertise - basis of tech and its application
      - Knowledge is a source of competitive advantage ie. Walmart's info rich relationships with customers and suppliers
      - Useful if: can capture, transform into usable info, diffuse quickly
      - Firms must continue to develop (training) or hire for new knowledge since stuff usually does spillover to competitors.
      - Can take most adv when has strategic flexibility - set of capabilities used to respond to demands and opportunities in a dynamic and uncertain competitive environment
        
        But inertia can be caused by a firm's past focus and core competencies - therefore must develop capability to learn and apply that broadly and quickly.