Management Areas

1
Management Areas
Level of Analysis
Fundamental Question
What allows certain firms to consistently
outperform their rivals?
Organization/ Environment
Strategy
Should tasks be organized based on inputs or
outputs?
Organization Theory
Group/ Organization
Organization Behavior
Individual/ Group
Are satisfied workers productive workers?
2
Levels of Sustainable Profit
3
Four Levels of Competition
Monopoly Oligopoly Hyper
Pure
Number of Players
Few
Several
Many
One
Sustainability of Advantage
Absolute
Long-Term
Temporary
None
Some Winners - Some Losers
One Big Winner
Few Big Winners
Profit Potential
None
Impact on Consumers
Positive
Negative
Positive
Negative
4
Strategy

• The configuration of a firms resources in
  relation to its external environment

5
Competitive Advantage

• The ability of a firm to consistently outperform
  its rivals

6
Industry Average 9.4
7
Industry Average 5.1
8
A Strategic Management Framework
Above-Average Industry Performance
Competitive Advantage
The Market
Distinctive Competencies
Capabilities
Routines and Skills
Resources
Tangible Intangible