Презентация на тему: Introduction to business

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Introduction to business
Question for next week
Objectives of strategic management
Strategic management
Strategic analysis
Business environment
Value chain analysis
Strategic choice
Strategy in a global economy
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Первый слайд презентации: Introduction to business

Business strategy

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Слайд 2: Question for next week

Why milk cartons generally have rectangular shape while soft drinks cylindrical?

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Слайд 3: Objectives of strategic management

Strategy – description of the way in which an organisation addresses its fundamental challenges over a medium to long term. Henry Mintzberg concept of „five Ps” of business strategy. A strategy can be: A plan A ploy A pattern of behavi o ur A position with respect to others A perspective

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Слайд 4: Strategic management

The management of the strategic long-term activities of the business including: Strategic analysis – focus on factors determining business performance both internal (product development, human resou r ces ) as well as external (competitive environment, technology) Strategic choice – formulation and evaluation of alternative courses of action that can be adopted Strategic implementation: how to put choices into effect.

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Слайд 5: Strategic analysis

What the organization is about (mission)? How it envisages where it wants to be (vision)? Both influenced by corporate governance – structure of decision making (including relation with stakeholders), business ethics and cultural context. More than just profitability!

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Слайд 6: Business environment

M.Porter’s Five Forces Model of competition: The bargaining power of suppliers The bargaining power of buyers The threat of potential new entrants The threat of substitutes The extent of competitive rivalry. However, it is a static view of the business environment, while in reality it is constantly changing. Moreover, exclusion of co-operation possibilities. Also neglected human resources and company’s culture.

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Слайд 7: Value chain analysis

Value chain (also M.Porter ): The stages or activities that help to create product value (how value is added to a product as it moves through production process). Two sets of activities: primary and support Primary: inbound and outbound logistics, operations, marketing and sales, service. Support: procurement, technological development, human resource management, firm infrastruture.

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Слайд 8: Strategic choice

Two broad categories of strategic choice theories: Market-based Resource-based (core competencies – key skills of a business that underpin its competitive advantage) Three fundamental (again M.Porter !) market-based strategies: Cost leadership Differentiation Focus

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Последний слайд презентации: Introduction to business: Strategy in a global economy

Why go global ? : Market size Increased profitability Location economies – internationalization of value chain enable to place each value –created activity in the most appropriate place. Cost reduction (scale economies, learning by doing) Using core competencies Spreading risk Keeping up with rivals

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