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Class notes

Class #9 (Business Planning and Strategy)

  • Porter’s Five Forces (Analyse industry as a whole)
  • Evidence of High Level of Rivalry: Price War, Marketing, New Innovation/Advancement, High level of R&D investment
  • Barriers to Entry: High Capital Investment, specialized investment, Government Barrier, Patents, Well established companies
  • How you define the industry determines the way you will define the Porter’s Five.
  • External environment (Opportunities) which may change the firm’s tastes of the market.
  • Tactics (Short term) vs. Strategy (Long term)
  • Porter’s Generic Strategy
  • Operational efficiency does not equal to strategy. Because strategy is a sustainable competitive advantages which is its uniqueness that others cannot copy
  1. Change activities
  2. Change the way of doing
  3. Choose what activities NOT to pursue
  4. Fir the competitive advantage and sustainability
  • Strategy process
  1. Mission
  2. Vision
  3. Objectives or goals (SMART)
  4. Strategies
  5. Tactics
  6. Strategy Levels

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