Boundaries of the Firm Flashcards

1
Q

What is strategy?

A
  • Porter: “…about being different. It means deliberately choosing a different set of activities to deliver a unique mix of value”
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2
Q

What does good strategy provide answer for?

A
  1. Where do we compete?
  2. What unique value do we bring to markets?
  3. What resources/ capabilities do we utilize to deliver value?
    § E.g. Unique reputation, specialist knowledge
  4. How to sustain ability to create and provide unique value?
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3
Q

What is the valuable approach?

A

○ Understand how firms organise and compete

○ Understand markets and nature of competition

○ Secure foundation for good strategic decisions

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4
Q

What are horizontal boundaries of the firm?

A

Positioning in a market and how much space a firm wants to take up in a market

Size in any given market/ Scope

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5
Q

What are vertical boundaries of the firm?

A

linear framework of supply chain

How to create/provide a product or a service

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6
Q

What is strategic positioning?

A

§ On what basis does a firm compete?

§ Achieving and sustaining a competitive advantage
Key target: Value

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7
Q

What is internal organisation?

A

§ Architecture or structure of the firm

§ Incentive structures

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