Corporate Strategy Session 2024-1: How to Make an Argument PDF
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Uploaded by RelaxedWisdom3013
2024
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Summary
This document is about corporate strategy, focusing on how to make an argument and understanding why some companies are more successful than others. It looks at various concepts like competitive advantage, profits, revenues, costs, and the success of companies like Starbucks and others.
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Corporate Strategy Session 2024-1: How to make an argument 1 Corporate Strategy 5 Which question do we seek to address in this course (first part) We want to understand why some companies are (way) more successful than others!...
Corporate Strategy Session 2024-1: How to make an argument 1 Corporate Strategy 5 Which question do we seek to address in this course (first part) We want to understand why some companies are (way) more successful than others! ○ Starbucks one example. Others: Google, Apple, Tesla, Nestle, Novartis… ○ Flip side: Why do companies fail? Other disciplines: ○ For example. Psychology: Why are some people more successful than others? 6 In our context, what does “success” mean? Success=Higher Profits! (Psychology: Success - income, education success etc ) (from our textbook) Vocabulary! “What is the source of competitive advantage” = “Why successful” 7 Success Levers Profits=Revenues-Costs Profitable: These profits can then be used to invest, to grow etc.. → Non-Profitable: Startups→ bankruptcy Why are some firms more profitable than others? 8 Extremely Successful Companies… 9 Naive “Success Theory”: Some companies are just lucky ⇒ No, it is a company’s strategy (i.e., deliberate choices) that made these firms so successful. 11 Inclass Exercise: Why is Starbucks so successful? Revenue: $24bn (10x higher than its largest competitor) Stores in 80 countries 340k employees 57% market share Market Cap: $99bn 13..and others are not! Magdalena Vintage Cafe Revenue:
