How to Make an Argument - Business Strategy

**How to make an argument** **Corporate strategy** From competitive advantage to corporate strategy Corporate strategy concerns [two different questions]: 1. what business the corporation should be in 2. how the corporate office should manage the array of business units In our context, what...

**How to make an argument** **Corporate strategy** From competitive advantage to corporate strategy Corporate strategy concerns [two different questions]: 1. what business the corporation should be in 2. how the corporate office should manage the array of business units In our context, what does "success" mean? **Defining \"Success\"** Success in this context is defined as **higher profits**. - From our textbook: - Business success = Profits. - Psychology success = Income, educational achievements, etc **Success Levers** Profits= revenues-costs - Profitable: these profits can then be used to invest, to grow etc - Non-profitable: firms may face bankruptcy (e.g., startups). Extreme successful companies: Naive "Success Theory": Some companies [are just lucky] **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 **..and others are not!** **Magdalena Vintage Cafe** - Revenue: \< CHF 0,5 million - One store in one country - \