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G2 - [FBS-1] Introduction to Strategic Analysis (An introduction to…
G2 - [FBS-1] Introduction to Strategic Analysis
An introduction to Strategic analysis
The strategist's challenge
Three basic Qs
Value
Mission statement
Industry information
Aspiration(ambition)
Mission, scope
Opportunities
Able to see market value
Create market demand
Capabilities
Companies will execute distinctive strategy, instead of compete in same strategy
Distinctive strategy
Gains profit
Competitive(same) strategy
Barely no profit
Concept
The pattern of decisions in a company
Produces the principal policies & plans for achieving those goals
Defines the range of business
Determines and reveals its objectives, purposes, or goals
Map out the organizations strategy
Plan
To accomplish the mission
Action
take action
help define what the strategy of the organization is
Mission
The purpose or value of company
Fundamental principle of business
Economic profits
In Perfect competitive market
no firm realizes economic profits
competitive markets
The Fundamental Principle
a price taker
when there is one firm
another firm enter into that market
Tobin's Q
ratio of market value to book value
Often difficult to calculate replacement value
(Professional skills required )
Discounted cash flow
Revenue - cost - investment
Net Present Value (positive)
returns > inputs
Strategic analysis
who
Entrepreneur/Owner
VP strategic planning
CEO or President
General manager of a business unit
secondary stakeholders
how
analysis
intergrate
what
analytics and data
Tools and frameworks
two perspectives on economic rents
Ricardian Rents
Barriers to imitation
Firm structure matters
Monopoly Rents
Industry structure matters
how firms achieve superior performance
help us understand how to analyze their strategy
Barriers to entry
Hi G2, good job!
Why not also review MR-MC curves in Monopoly market?
