01 Fundamentals Flashcards
What is a strategy (Sailing Metaphor)?
Basic Statements about Strategies (3)
- Long-term: Strategies based on
assumptions that need to be communicated and validated over and over again - Long-term direction: Advantages of
strategies <– their uniqueness compared to their competitors - Strategic management –> explain differences in the performance of companies
The traditional dependent variable of strategic management research: profitability
Main 4 Elements of performance
Views of Business
(a) The Disparate View
(b) The Intertwined View
(c) The Embedded View
New Dimensions & Measures of Performance
(a), (b), (c), (d),
(a) ESG Risk Reporting
- Environmental Social Governance
- ESG scores by rating agencies
- The greenium: firms acquire capital from fin institutions by issuing bonds; green bonds directly tied to ESG score of issuing firm; good ESG performance allows firms to harness “greenium”: firms pay less interests for green bonds compared to “normal” bonds
(b) Sustainable Development Goals (UN)
(c) Race to Net-Zero
(d) Circular Economy
- transform the economic system “into a more inclusive, equitable, and regenerative global economy”
- From zero to Net-positive: business improving well-being for everyone it impacts & at all scales
Major Challenges in Strategic Management
The Purpose of Strategy (Mission & Vision Statements)
Basic Logic of Strategic Management
- Outside-in: Amazon as “customer-obsessed” company
- Inside-out: Amazon leveraging superior resources to create competitive advantages in different industries
Arguments Resource- vs Market-Based View
Strategic Framework (Course Overview Model)
7 Reasons for the Development of Strategies
Different Levels of Strategy (5 levels)
Who is responsible for strategy within organisations? (a)
–> Classical view
Who is responsible for strategy within organizations? (b)
–> Integrated View
