Read the summary and the most important questions on Strategy

• Charting a Company's direction

• What does the strategy making and executing process entail

  1. Developing a strategic vision to chart the Long run direction, mission statement to describe the company's purpose, core values to guide the pursuit of the vision and mission.
  2. Setting objectives to keep track of performance
  3. Crafting a strategy to advance the company along the path laid out.
  4. Executing the strategy effectively and efficiently
  5. Monitoring developments, evaluating performance, and making adjustments to make sure the direction is stilly yields plenty of opportunity.

• Evaluating a Company's Resources, Capabilities, Competition

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• How well is the company's present strategy working

  Indicators:
  

  1. whether the company is achieving their stated financial and strategic objective
  2. whether its financial performance is above the industry's average
  3. whether its gaining customers and increasing market share

• The company's most important resources and capabilities, and do they yield a lasting competitive advantage.

  2 types of resources:
  

  1. tangible resources are those that can be touched or quantified.
  2. intangible resources include human assets and intellectual capital and a company's intellectual property. 

  
  Capabilities:
  

  • capabilities are knowledge-based residing in the intellectual capital. 

• VRIN Test for Resources Competitive Power

  1. Is the resource or capability competitively valuable
     
  2. Is the resource or capability rare (do rivals lack it)
  3. Is the resource or capability inimitable
  4. Is the resource or capability non-substitutional

• Strategies for Competing in International Markets

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• Why companies decide to enter foreign Markets

  • To gain access to new customers
    
  • to achieve lower costs through economies of scale and increase purchasing power
  • to gain acces to low-cost inputs of production
  • to further exploit its core competencies 
  • to gain access to resources and capabilities located in foreign markets

• Evaluating a Company's External Environment

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• Porter's Five Forces Analysis

  1. Competition from rival sellers
  2. Competition from new entrants to the industry
  3. Competition from producers of substitute products
  4. Supplier bargaining power
  5. Customer bargaining power

• The Five Generic Competitive Strategies

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• A broad differentiation strategy

  Seeking to differentiate from rivals products to appeal to a broader spectrum of buyers

• Strengthening a Firm's Competitive Position

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• Offensive strategy option

  • Offering an equally good or better product at a lower price
    
  • leapfrogging competitors with next gen products
  • pursuing continuous innovation
  • pursuing disruptive innovations to create new markets
  • adopting and improving on the good ideas of other companies
  • using preemptive strikes to gain an industry's limited resources or opportunities.

• Ethics, Corporate Social Responsibility, Environmental Sustainability & Strategy

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• School of Ethical Universalism

  The fundamental concepts of right and wrong are universal and apply to members of all societies, all companies, and all business people

• What is Strategy and why is it Important

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• 5 strategic approaches to set firms apart

  1. Low-cost strategy
  2. Broad differentiating strategy
  3. Focused low-cost strategy
  4. Focused differentiating strategy
  5. Best-cost provider strategy