Introduction …….. 6
Chapter 1: Strategy, competition, competition advantages …………………………………………….. 11
1.1. Strategy and strategic thinking ………………… 11
1.2. Competition and competition advantages …. 23
Case Study: The Strategic Business Unit (SBU) as a specified subject
of the market oriented management ……………… 28
Questions, tests, tasks …………………………………… 30
Chapter 2: Competitiveness – versions and factors …… 33
2.1. Competitiveness as an economic category. National competitiveness ………………… 33
2.2. Competitiveness at entities’, regional and branch levels ……………………………………. 41
Case Study: The role of market structure in the classical paradox of value
(the diamond – water paradox) . ……………………. 47
Questions, tests, tasks …………………………………… 49
Chapter 3: The „National Diamond” model and the rules for generating
competition advantages ……………………………….. 52
3.1. The „National Diamond” model as a system of factors . ……………………………………… 52
3.2. Rules for establishing competition advantages of nations ………………………………… 61
Case Study: The disbalance „real production – global finances” and national
competition advantages ……………………………….. 63
Questions, tests, tasks …………………………………… 67
Chapter 4: Mission and goals of business – instruments for strategic competition …………….. 69
4.1. Definition of mission and vision of an enterprise …………………………………………….. 69
4.2. Leading requirements to the system of strategic goals of the company ……………….. 75
Case Study: Social responsibility – an asset of Bulgarian enterprises ………………………… 82
Questions, tests, tasks …………………………………… 84
Contents
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Проф. Румен Георгиев
Contents
Chapter 5: Inside enterprise scan ……………………………. 87
5.1. The Value Chain ……………………………………… 87
5.2. Analyzing the capability for business cooperation and partnership
as a strategic need ………………………………………. 94
Case Study: Key competencies of Microsoft ………. 99
Questions, tests, tasks …………………………………. 101
Chapter 6: Scanning the competition business environment (industrial branch).
Etalone strategies ……………………………………….. 104
6.1. The model of the five competition forces as a methodological instrument …………. 104
6.2. Etalone competition strategies of M.Porter – a model of the available means of
activity of the enterprise ……………………………… 117
Case Study: How does the Internet influence competition
forces and corporate strategies? …………………… 120
Questions, tests, tasks …………………………………. 122
Chapter 7: Principles of use of the model of etalone competition strategies . …………………… 125
7.1. Differentiation strategy …………………………. 125
Case Study: Successful differentiation of financial services entity …………………………… 131
7.2. Expenditures (sustainability) leadership strategy ………………………………………….. 132
Case Study: Achieving minimum corporate expenditures by constant quality …………… 137
7.3. The focusing strategy . …………………………… 140
Case Study: Successful focusing on expenditures reduction of an air-carrier …………….. 143
Questions, tests, tasks …………………………………. 145
Chapter 8: Development of the model of etalone competition strategies ………………………… 148
8.1. The need of developing the model of etalone strategies …………………………………. 148
8.2. Positioning on the ground of diversification the
maintenance of products and services ………….. 152
Case Study: Differentiation of maintenance of clients in the insurance ……………………. 155
Case Study: Differentiation of products by image and content ………………………………. 157
Questions, tests, tasks …………………………………. 160
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СТРАТЕГИРАНЕ И КОНКУРЕНТОСПОСОБНОСТ
Chapter 9: Competition targeting the final customer under an
environment of perception of survival – principles and advantages ………………………… 162
9.1. The market as a forum of mutual generation of survival perception ………………….. 162
9.2. Major sources of competition advantage under an
environment of perception of survival ………….. 169
Case Study: Joint values generation in the international network
of perception of survival …………………………….. 176
Questions, tests, tasks …………………………………. 178
Chapter 10: Joining goals, competition positions and strategic action …………………………….. 181
10.1. The complex strategic decision. Scenarios and action …………………………………… 181
Case Study: The „Always one idea ahead” – strategy of Intel …………………………………… 194
10.2. Supporting methods for taking a strategic decision ……………………………………… 195
Case Study: Early Warning (EWS) and Quick Response (QR) systems ………………………… 209
Questions, tests, tasks . ………………………………… 211
Chapter 11: Balanced Indicators System (BIS) for strategic monitoring and control ………….. 214
11.1. Balanced Indicators System principles and architecture ………………………………… 214
11.2. Indicators’ types and the controlling technology ………………………………………….. 223
Case Study: Design of analytical indicators for projects’ management …………………….. 232
Questions, tests, tasks …………………………………. 235
Synopsis: Strategizing and challenges before the government competition regulation . ……. 238
Basic literature 246
Supplementary sources ………………………………………. 246
List of figures … 248
Contents ………. 250
EN: Contents of Strategizing and Competitiveness
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