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CHAPTER 9: ECONOMIC DEVELOPMENT AND THE AMERICAS? - Coggle Diagram
CHAPTER 9: ECONOMIC DEVELOPMENT AND THE AMERICAS?
Main dimensioning:
In business, strategy is king. Leadership and hard work are all very well and luck is mighty useful, but it is strategy that makes or breaks a firm
What is Strategy.-
is the set of actions that its managers take to outperform the
company’s competitors and achieve superior profitability
Stages of Economic Development
:
Least Developed Countries.- Industrially underdeveloped, agrarian, subsistence societes with rural populations, extremely low per capita income levels
Newly Industrialized Countries.- Have shown rapid industrialization of targeted industries such as. Chile, Mexico, Brazil, South Korea
Less Developed Countries.- Industrially developing countries just entering world trade, many of which are in Asia and in Latin America
More Developed Countries.- Industrialized countries with high per capit incomes such as: Canada, England, Germany, France
Economic Development
: is generrally understood to mean an increase in national production reflected by an increase in the average per capita gross domestic product (GDP) or gross national income (GNI)
Important fact about strategy:
There are many routes to competitive advantage, but they all involve either giving buyers what they perceive as superior value compared to the offerings of rival sellers or giving buyers the same value as others at a lower cost to the firm
Economy Growth Factors:
Political Stabiility in policies affecting their development
Economic and legal reforms. Poorly defined or weakly enforced contract and property rights are features the poorest countries have in common
Entrepreneurship.- Free enterprise in the hands of the selfemployed was the seed of the economic growth
Planning.- A central plan with observable and measurable development goals linked to specific policies was in place
Outward orientation.- Production for the Domestic Market and export markets with increases in efficiencies and continual differentiation
Three tests can be applied to determine if a strategy is a winning strategy:
The Fit Test: To qualify as a winner, a strategy has to be well matched to industry and competitive conditions, a company’s best market opportunities, and other pertinent aspects of the business environment in which the company operates.
The Competitive Advantage Test: Is the strategy helping the company achieve a sustainable competitive advantage? Winning strategies enable a company to achieve
a competitive advantage over key rivals that is long-lasting
The Performance Test: Is the strategy producing good company performance? The mark of a winning strategy is strong company performance, it means competitive strength and market standing and profitability and financial
strength.