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Date Submitted: 10/05/2010 06:39 AM
Lecture 5
Chapter 3- strategic management and the entrepreneurs
Intellectual capital- it’s a key source of a company’s competitive advantage that is comprised of human capital, structural capital, and customer capital.
• Human capital – the talent, skills, and abilities of a company’s workforce.
• Structural capital- the accommodated knowledge and experience that a company possesses. Software, patent or experience.
• Customer capital- the established customer base, positive reputation, ongoing relationship and goodwill a company builds up over time with its customer.
Strategic management- it’s the process of developing a game plan to guide a company as strives to accomplish its, vision, mission, goal, and objectives and to keep it from straying off course
Competitive advantage- the aggregation of factors that sets a small business apart from its competitors and gives it a unique position in the market superior to competition.
Core competencies- a unique set of lasting capabilities that a company develops in key operational areas that allow it to vault past competitors.
The strategic management process-
Step 1- develop a clear vision.
• Vision provides direction
• Vision determines decisions
• Vision motivates people.
Mission statement- an enduring declaration of a company’s purpose that addresses the first question of any business venture, what business are we in?
Step 2- assess the company’s strength and weaknesses
• Strength- positive internal factors that a company can use to accomplish its mission, goals, and objectives.
• Weaknesses- negative internal factors that inhibit the accomplishment of a company’s mission, goals, and objectives.
Step 3- scan the environment for significant opportunities and threats facing the business
• Opportunities- positive external factors that a company can exploit to accomplish its mission, goals, and objectives.
• Threats - negative...