some strategic basics

ZLei

Economics of Strategic Behavior

Some Basics:

1.       Again. Size is not Economics-of-scale!  Significant fixed cost and “temporary” demand advantage are required (when size matters?)

2.       Strategy is Planning

a.  Against moving not static targets

b.  Against conscious reactive agents not a passive environment

3.       critical aspects of strategic analysis

a.  clarity of vision

b.  well-established priorities à strategy is concerned with management of external, competitive environment

4.       Strategic decisions

a.  Large consequences (extended impact)

b.  Outcome depends on reaction of other agents

c.  Function of economic environment

5.       Tactical Decisions

a.  Immediate consequences

b.  Outcome in company control

c.  Function of organizational effectiveness (efficiency, management performance)