TAILIEUCHUNG - Chapter 1 - Introducing Strategic Management

Understand what a strategy is and identify the difference between business-level and corporatelevel strategy. Recognize the difference between a fundamental and a dynamic competitive advantage. Describe the determinants of competitive advantage. Understand why we study strategic management. | Chapter 1 Introducing Strategic Management OBJECTIVES 1 2 3 4 5 Understand why we study strategic management Recognize the difference between a fundamental and a dynamic competitive advantage Describe the determinants of competitive advantage Understand the relationship between strategy formulation and implementation Understand what a strategy is and identify the difference between business-level and corporate-level strategy UNDER ARMOUR AT A GLANCE 1996 2006 Revenues $17,000 $430,000,000 Net Income 0 57,300,000 Equity Value 0 1,800,000,000 Brands and Trademarks Under Armour, HeatGear, ColdGear, AllSeasonGear, LooseGear, Click Clack Kevin Plank’s Vision To become the world’s #1 performance athletic brand TWO RETAILERS AT A GLANCE Sears Wal-Mart Year founded 1891 1962 Stores 1980 Stores 2004 864 2026 600 5289 Revenues 1980 Revenues 2004 $25,194 million $36,100 million $1,643 million $285,222 million Net profits 1980 Net profits 2004 606M ( return on sales) 507M ( .

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