Introduction to Business Strategy

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Introduction to Business Strategy af Mind Map: Introduction to Business Strategy

1. Porters Five Forces Model

1.1. Threat of New Entrants

1.2. Threat of Substitutes

1.3. Bargaining Power of Buyers

1.4. Bargaining Power of Suppliers

1.5. Rivalry Among Existing Competitors

2. Management Ethics

2.1. "involves leaders protecting their employees, customers, and society as a whole from any negative consequences that arise from the actions of their businesses.

2.1.1. Virtue Ethics

2.1.2. Consequentialist View

2.1.3. Deontological View

2.1.4. Corporate Governance

2.1.5. Code of Conduct

2.1.6. CSR

3. SWOT

3.1. Strengths

3.1.1. 1. What are we really good at? 2. What are our best & unique skills? 3. What internal talent do we have?

3.2. Weaknesses

3.2.1. 1. What does our company lack? 2. What departments or sections of the company are lagging behind? 3. Where are we losing time & money?

3.3. Opportunities

3.3.1. 1. What are the market opportunities that we have? 2. What are the changes in our external environment that we can take advantage of? 3. Can we tap into new customer strategies?

3.4. Threats

3.4.1. 1. What expertise do we lack in our efforts to use opportunities? 2. What is it that our competitors are doing better than us? 3. What's happening in the economy or industry that can adversely affect us?

4. Strategic Decisions

4.1. Traditional Business-Level Strategies

4.1.1. cost leadership, differentiation, and focus strategies.

4.2. Blue Ocean Strategy

4.2.1. a newer and more radical business-level strategy.

4.3. Elements of Value

4.3.1. focus strategy on customer needs

4.4. Corporate Level Strategy

5. Strategic Foresight

5.1. Identify external trends in your environment

5.2. Know what it takes to win in an industry

5.3. Look critically at your firm's strengths and weaknesses

5.4. Weigh the needs of stakeholders

5.5. Avoid common missteps in strategy

6. First Mover Advantage

6.1. A first mover is a business that gains a competitive advantage by being the first to market with a product or service.

7. Financial Statements

7.1. Income Statement

7.1.1. shows company revenue and expenses in a given period

7.2. Balance Sheet

7.2.1. Assets, Liabilities, and Capital in a business at a specific time

7.3. Cash Flow Statement

7.3.1. Companies inflow and outflow of cash

8. Business Level Strategy

8.1. typically focuses on a single market or type of customer.

8.2. 1. Who will we serve? 2. What customer needs will we satisfy? 3. Why do we want to satisfy these needs? 4. How will we go about satisfying our customers' needs?

9. Corporate Level Strategy

9.1. The corporate firm may choose to have business units that each focus on different products, markets, or customers. Business units within a larger organization may even pursue different business-level strategies.

10. Competitive Advantage

10.1. When a company is in a favorable or superior business position.

11. Financial Ratios

11.1. Growth

11.1.1. YTY Growth

11.1.2. CAGR/ Return Rate

11.2. Profitability Ratios

11.2.1. Gross Margin

11.2.2. Operating Margin

11.2.3. Net Profit Margin

11.2.4. Return on Equity

11.2.5. Return on Assets

11.3. Liquidity Ratios

11.3.1. Current Ratio

11.3.2. Quick Ratio

11.3.3. Cash Ratio

11.4. Leverage Ratios

11.4.1. Debt to Equity Ratio

11.4.2. Debt to Capital Ratio

11.4.3. Debt to Enterprise Value Ratio

12. 5 Skills of Ethical Decision Making

12.1. 1. Recognizing Ethical Issues

12.2. 2. Investigating Facts

12.3. 3. Identifying Stakeholders

12.4. 4. Generating Solutions

12.5. 5. Evaluating Consequences

13. Strategic Execution

13.1. Balanced Scorecard

13.1.1. strategic planning and management system that organizations use to focus on strategy and improve performance.