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[G3] LN-1 Superior Performance & Strategy (firm (Competitive…
[G3] LN-1 Superior Performance & Strategy
begin
strategy?
correct
definition
The highest guiding principle an organization follows
components of successful strategies
environment
objective
In pursit of Survival ,Success ,Superior Performance and Sustainability
resources&capabilities
myth
raking in every penny the fir can get
operational effectivenss
Effectiveness of strategies
Profitabiliyty
shareholder value
Profit growth
Superior Performance factors
Firm effects 30~45%
EX:Software v.s Air transport v.s Drug...
Other effects 35~50%
EX:corporate parent .year effect .unexplained variance
Industry effects 20%
EX:Wal-mart v.s Target v.s Costco
firm
The goal of the firm
whose interest
shareholders
returns
dividend payments
Capital appreciation in market value of shares
stakeholders
Internal: employees,stockholders
External: customers,creditiors,governments
goals
earn money?
long-tern or short-tern
Governance Mechanisms
Board of Directors(BOD)
Board of Directors(BOD)
stock-based compensation for executives
financial statements & auditors
takeover constraint
Sustainable Strategy
ecological
planet
economic
profit
social
people
Competitive advantages
be linked to sustainable strategy
a multifaceted concept
assess competitive advantage
profit
shareholder value
economic value
multiple performance dimensions
agency problem
difficult to measure performance
information asymmetries
different goals
strategic management
origin
evoloved from "business policy" at HBS since 1912
case method
globalization
reduce artifacial barrier
transportation
communiciatinn
technology change
shortened product life cycle
example
Southwest Airline
winner-take-all markets
co-opetition
disruptive technologies
TSMC
SWATCH
appropriate
levels
SBU
how to compete
business function
how to implement
headquarter
where to compete
link
inside-out
outside-in
external environment
internal environment
the sources
where should we be in
corporate strategy
strategy configuration
how should we compete
business strategy
strategy innovation
tripod
industry competition
firm specific resources and capabilities
strategy
performance
institutional conditions and transition
how is strategy made?
deliberate
emergent