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Strategic Management Process
1. Inputs
2. Formulation
3. Implementation -
3 reasons technology influences the competitive environment
- technology diffusion and perpetual innovation
- efficiency of info gathering
- strategic flexibility -
I/O model
external forces determine the returns -
strategy as a plan
companies with a better planning system have a competitive advantage -
strategy as a pattern
good planning + sufficient room for creative ideas create a competitive advantage -
population ecology theory
environmental factors select organizations that are most fit to survive in the environment. these firms build inertia and survive -
integrated cost leadership/ differentiation strategy
want to gain both competitive advantages -
standard cycle markets
relatively protected against imitation and change mediocre slow -
complementary strategic alliances
resources and capabilities are shared in a complementary way, either vertical or horizontal -
diversifying strategic alliance
resources are shared to diversify into a new market area or product
- Higher grades + faster learning
- Never study anything twice
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