工商管理专业MBALecture04004.pptVIP

The value chain for steel cans IRON ORE MINING STEEL PRODUCTION STEEL STRIP PRODUCTION CAN MAKING CANNING OF FOOD, DRINK, OIL ETC. Market CONTRACTS VERTICAL INTEGRATION MARKET CONTRACTS VERTICAL INTEGRATION AND MARKET CONTRACTS * Revision Diagrams Dr Ita O’Donovan Strategic Management Thinking and Knowing Thinking is a key component of cognition. When we think, we perceive, classify, manipulate and combine information At the end of the process, we know something we did not know before ( it is possible this new knowledge is incorrect Need to remember we think not by language alone, we think in shapes, images Ways of thinking Deductive Reasoning consists of inferring specific instances from general principles or rules e.g. Kiran is taller than Suniel Sophia is shorter than Suniel Therefore Kiran is taller than Sophia Inductive reasoning is the opposite of deductive reasoning. It consists of inferring general principles or rules from specific facts. Inductive reasoning requires us to test facts or hypotheses Remember the card example asking which ones to turn up to be sure the statement was true. Other things to watch out for when thinking Failure to utilise a comparison group Control group for comparison Confirmation Bias: we tend to seek evidence that confirms our hypothesis. Remember if there is an exception the rule is wrong. Always look for evidence Describing a firm strategy: competing in the present, preparing for the future COMPETING FOR PREPARING FOR THE PRESENT THE FUTURE Check exercises on Companies Mission Statements see pyramid diagram in these notes. STATIC Where are we competing? Product market scope Geographical scope Vertical scope How are we competing? What is the basis of our competitive advantage