Strategic Management

Core competencies

Capabilities exploited by companies to get competitive advantage over rivals. Skills ability and knowledge. Resources + capabilities

Hypercompetition

Intense competion coming from globalization and rapid technology change- information technology, Big data and Strategic flexibility.

Industrial organizations

How businesses compete and how market structure affects companies. Ex Envoirmental- Similarity with companies- Reseourse mobility- Organizational decision makers

Porters 5 forces

Rivalry among existing comp- Rivalry against existing customers- Threat of new entrants- Bp of suppliers- Bp of buyers- Threat of subsitute products

Organizational capital

Company systems and process, culture

ASP

analysis strategy performance

Industry envoirment

Everything closely influencing firm

General environment

Broader society dimensions thag influence firm

SMFA

Scanning Monortoring Forecasting Assesing

Competitor environment

Strengths weaknesses Goals Strategy

Strategic group

Same strategy group

Intergroup vs intragroup

Intra all together inter in between

Value curve

Factors of competition ranked nd graphed for customer value

4 criteria for competitive advantage

Valuable capabilities- Rare capabilities- costly to imitate- Not subsitueable

Value chain analysis

Which parts of operations having motion and support/activities

Outsourcing/offshoring

Buying value creating activity from external supplier and out of country

corporate level strategy

Managing businesses in company

Business level strategy

what product/good/function. Positioning strategies

Functional level strategy

How can we support business level?

Market segmentation. Customer vs industrial

Customer identification demogrphics vs institutional investors

Business models

Franchise, subscription, digital

Strategic vs tactical

Planned out, commitment vs fast twich tuning slight resources

Market comminality and multipoint competition

Having multiple common markets with competitor and competiton with multiple products coca cola and pepsi

Actor

Firm taking action or response

Organizational slack

A firm overly hann resourse

Economies of scope

Sharing activites eeduce cost enhanceefficeny

Operational related and copr related

Sharing manufacturing and sharing managerial

Verticle intergation

Controlling and producing own input(backwards) and output(forwards)

Curve linear

Related contrained diverification is the best cuz sometimes its diminishing return

Horizontal intergration

Combining with a company with the same supply chain and industry as you

Synergy

Combining being better than each company on they lonely

Downscoping

Sells or spins off business to focus on main motion

Corporate governance

Who had the power and how they are acting

Agency

Ownership separated from shareholders(principals) and managers(agents)

External governance mechanisms

Mcc market corporate control- hostile takeover Regulator- reulatory framework dodd act Creditor- large creditors can make stretegic decisions

Internal governance mechanisms

Ownership concetration, BODS, executive compensation

Opprrtunistic behavior

Self interestesed managerial decisions not for best company interests

Capital Structure Change

The target company changes its financing (such as issuing debt, buying back shares, or using ESOPs) to make a takeover more expensive and difficult. Success: Medium • Shareholder Wealth: Inconclusive.

• Corporate Charter Amendment:

The target company changes its charter (such as staggering board elections) so the acquirer cannot quickly replace the board and gain control. Success: Very Low • Shareholder Wealth: Negative to Negligible.

Golden Parachute

Top executives receive a large cash payment if the company is acquired, increasing the cost of the takeover. Success: Low • Shareholder Wealth: Negligible.

• Greenmail:

The target company buys back the acquirer’s shares at a premium in exchange for the acquirer agreeing to stop the takeover. Success: Medium • Shareholder Wealth: Negative.

• Litigation:

• The target company files lawsuits (such as antitrust or disclosure claims) to delay or stop the hostile takeover. Success: Low • Shareholder Wealth: Positive.

• Poison Pill:

• Existing shareholders (except the acquirer) can buy discounted shares, reducing the acquirer’s ownership and making the takeover much more expensive. Success: High • Shareholder Wealth: Positive.

• Standstill Agreement

• The acquirer agrees not to buy more shares or pursue a takeover for a set period, usually in exchange for a payment from the target company. Success: Low • Shareholder Wealth: Negative.

Transformational leadership

Jason overly coo nice performative

Transactinonal leadership

Dead motion get money bland

Structure formal

Reporting relationships

Controls

Guide strategy implementation strategic or financial

Simple structure

Owner and assistant

Functional structure

President five vice presidents

Matrix structure

Combines functional and divisional chains of commands

Functional structure

People with a similar occupational specialties put together in formsl groups

Miltidivisional structure

People with diverse, occupational specialties are put together in formal groups by similar products, customers or geographic regions

Horizontal design

Improved collaboration of shared task by breaking internal barriers

Hallow or network structure

Core function outsources everything

Ambidexterity

Opprotunity and advantage seeking

Nascent market

Markets expericnceing significant shifts that fundamentally disrupt market order

Incubation

Identifying needs or tech breakthroughs

Entry

Early competitors join the market

Growth

Sales surge and more firms enter