Completed notes of the course v2

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STRATEGY CHAPTER 1: Introduction The concept of Strategy Being a manager: manage a complex system of relationships between actors in a complex environment. Manager goal: maximize long-term cash flows (which allows to achieve a combination of value creation for both shareholders and stakeholders). Strategy definitions: - Oxford dictionary o Generalship o The art of war, planning the movement of troops into favorable position o Plan of action or policy in business or politics - “Sun Tzu – The art of war”, 500 B.C (Military strategy) o Explaining 10 decisive factors for victory - “Ohmae – The mind of the strategist”, 1983 (Business strategy) o Business strategy is all about competitive advantage, enabling a company to gain a sustainable (= stays over time) edge over its competitors - “Henderson – The origin of strategy”, 1989 (Business strategy) o Strategy is a deliberate search for a plan of action that will develop a business’s competitive advantage and compound it o The objective is to enlarge the scope of this advantage, which can only happen at someone else’s expenses Strategic decision: - Long term, significant and non-reversible effects on the final goal of the organization - Requires: o Large amount of resources o Top management involvement Strategy: - Integrated, comprehensive (= complete) plan - It identifies the scope and the direction of the organization - Aimed at obtaining long-term performance superior to competitors - It integrates a coherent set of strategic decisions The concept of Marketing Marketing definitions: - “Rogers – Managers: Personality and Performance”, 1963 o Social process by which any organism relates itself to its external environment, providing services and exchanging values with this environment and thereby justifies the right of its…