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A divestiture, spin-off or other means of eliminating businesses unrelated to
a firm's core businesses
Cash Cow
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high market share in a slow-growing industry
Competitor Environment
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Focused on predicting the dynamics of competitors' actions, responses and
intentions
To better predict competitor actions, companies evaluate competitors
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future objectives, current strategies, assumptions, and capabilities
Resources:
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alone do not yield a competitive advantage
are combined to create capabilities
keys to determining how to respond to competitor actions
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motivation and ability
Product Characteristics
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➢ Relatively standardized (commoditized) products ➢ Features broadly
acceptable to many customers
➢ Lowest competitive price
market speed
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drives actions and responses
Structural stability
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provides the capacity required to consistently and predictably manage
daily work routines
Competitive actions
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likelihood of attack, response
Star
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high market share in a fast-growing industry
To prevent managerial opportunism
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principals establish governance and control mechanisms
Example of inherent conflicts between stakeholder groups
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the importance of environmental concerns
forward integration
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a firm operates its own distribution system for delivering its outputs
Cost Minimization Management Approach
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