Summary: Strategie En Besluitvorming

Read the summary and the most important questions on Strategie en Besluitvorming

• College 2

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• Competitive rivalry is HIGH when:

  • Entry is likely
  • Substitutes threaten
  • Buyers or suppliers exercise control
  • Competitors are in balance
  • There is slow market growth – see lifecycle model
  • There are high fixed costs in the sector – high exit barriers
  • Markets are undifferentiated
  • There are high exit barriers 

• Criticism Porter 5 Forces

  • Too much a fill-in exercise
  • Not particularly dynamic, too much of a snapshot
  • Competition can come from far beyond the industry and not just within the strategic group
  • Uber, Apple's iTunes --> companies that act as pioneers can redefine market boundaries

• College 5

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• Requisite conditions for global standardization

  • Excistence of global market segments
    
  • Synergies associated with global standardization
  • Availability of an international communication and distribution infrastructure. 

• College 7

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• Discrete organization perspective

  • Managers view companies as independent entities competing in a hostile market environment. 
  • Companies must strengthen their competitive position in relation to external forces – effective power requires independence 
  • Collaborative arrangements are always second-best to doing things independently. Collaboration is bad for the company’s longterm health. 
  • Companies should strive for ‘strategic self-sufficiency’.

• Embedded organization perspective

  • Managers believe that business is about value creation. 
  • A company can always find many organizations with which it shares an interest and whose objectives are largely parallel to its own. 
  • Firms must be sure that its partners are willing to invest in the relationship and will not behave opportunistically. Durable partnerships are based on mutual dependence and reciprocity. Interdependence. 
  • Collaboration is a real alternative means of dealing with other organizations.

• College 8

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• Industry developement : DIMENSIONS

  • Convergence-divergence
  • Degree of resemblance of business models in an industry
  • Concentration-fragmentation
  • Degree of market share / # companies in an industry
  • Vertical integration-fragmentation
  • Degree of involvement in value-adding activities in industry column
  • Horizontal integration-fragmentation
  • Degree of fuzziness of boundaries (links) between businesses in an industry
  • International integration-fragmentation
  • Degree of importance re boundaries separating geographic segments of an industry
  • Expansion-contraction
  • Structural nature of the demand for products/services in an industry

• Industry dynamics perspective

  • Firms are small players in a large game – their behaviors cannot fundamentally shape the direction of changes. 
  • The survival and growth of entities depends on their fit with the environment.
  • Changing the rules is difficult, slow and hazardous. 
  • Imperative for firms in general: meet changing and new demands of environment = co-evolve [and do this better than competitors] 
  • Survival of the fittest

• Industry leadership perspective

  • Belief that some rules in industry are immutable but other environmental factors can be manipulated. 
  • Strategist must recognize the limits of the possible and the limitless possibilities. 
  • Imperative: Leading firms need the intellectual ability to envision the industry’s future and be able to communicate this vision so that other firms and individuals will buy into it. 
  • A leading firm needs to work out a new competitive business model and develop new competencies and standards.

• College 9

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• Shareholder value perspective

  • Companies belong to their owners and should act in accordance with their interest.
  • The purpose of a corporation is to create economic value for those who invest risktaking capital.
  • Non-executive members on the board of directors check the executives to see they are running the company in a way that maximizes the shareholders’ wealth.
  • It is in the interest of shareholders to treat stakeholders well, but there is no moral obligation to do so (enlightened self-interest).

• Stakeholder value perspective

  • Companies are a joint venture between various stakeholders, with the intention of increasing their common wealth. 
  • Shareholders have an interest but profitability must balanced against the demands of the other partners. 
  • Managers have a moral obligation to consider the interests of all joint venture partners. 
  • Cooperation between stakeholders is more effective than competition. 
  • The organization should be responsible to all parties affected by the organization’s activities