Strategy and Decision Making

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Strategy and Decision Making
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Resource-based Theory

• A sustainable competitive advantage is what
  differentiates your company from your competitor
• A companys internal environment is more critical
  to strategic action than the external environment
• A companys goal is to exploit its core
  competencies

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Resource-based Theory

• Six Types of Resources
• Physical location, equipment
• Reputation customer satisfaction
• Organizational management, culture
• Financial cash, low cost production
• Intellectual and Human employee skills
• Technological superior and innovative

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Resource-based Theory

• Sustainability and long-term performance depends
  on protection of resources and capabilities
• A companys competitive advantage is created when
  its resources are valuable and rare
• Sustainability can only be achieved by growing
  existing resources and creating new resources
• Resources and capabilities must be valuable,
  rare, not easily imitated and not easily
  substituted

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Decision Making

• Decision-making skills are critical for a
  entrepreneur
• Entrepreneurs face difficult situations that
  often require immediate action
• Input from other members of the team can be very
  important

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6 Thinking Hats

• A process for problem-solving that focuses on
  parallel or lateral thinking as opposed to debate
  and argument
• The goal is to improve communications by
  providing a system in which all members of the
  team focus on the same approach to a problem at
  the same time

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6 Thinking Hats

• Arguments lead to
• The expression of one viewpoint only
• Lack of creativity and exploration
• Lack of discovery
• Defensiveness

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6 Thinking Hats

• The 6 hats include
• Red Feeling, Emotion
• White Information, Data
• Yellow Benefits, Optimism
• Black Judgment, Weaknesses
• Green Creativity, Alternatives
• Blue Thinking, Summaries, Big Picture