2. competitive adv and corpo strat model Flashcards
what is strategy
a plan, a pattern, actions generating profit
what a good strategy offer
a diagnosis, a guiding policy, coherent actions
value created
diff between WTP and WTS = economic space
shared value
total social value created by the firm
value captured
diff between price and cost = profit
industrial organizational perspective
focus on external industry
strategic management perspective
focus on internal resources
corporate adv
- diff between WTP and WTS > competitors
- economic value capture in form of profit
- orga value > individual BU value (measured with NPV)
proxy for volume based
market share
proxy for value based
ROS and operating margin
threats for strat sustainability
imitation, substitution, holdup, slack
corpo adv generation
portfolio selection and business combination
Portfolio strategy with synergy approach
single industry domestic
single industry multinational
multi industry technology driven
multi industry marketing driven
Portfolio strategy with financial approach
conglomerate with main business
classic conglomerate
4 parenting strategy
transferring competence
sharing assets
dynamic portfolio management
restructuring
competitive advantage
ability of a firm to earn superior fin returns than rivals in the LT
consumer surplus
diff between price and WTP
to calculate corpo adv
equity side pov (ROE)
