General Strategy

Question 1

The 4 Pillars of Strategy (from Powell, Lovallo, & Fox, 2013

Answer 1

To understand Performance you need to understand why Firms Vary

Pillar 1: Mobility Barriers - Firms diverge because mobility barriers exist in markets (Bain/Porter)
Pillar 2: Penrosian approach - imperfect immitability of resources (RBV approach)
Pillar 3: Schumpeterian - Firms diverge because certain firms are able to generate new value through creative destruction.
Pillar 4: Behavioral Strategy (How Managers / Firms make imperfect strategic choices relating from Power, Structures, etc.)