1. Chapter 8

2. Chapter 7 & 8 Strategic Management Model
Competitive Methods S2 P2 P3 S3 P1 S1

3. Competitive Methods as Combinations of Goods and Services
Products/Services
Competitive Methods P1 P2
Competitive Methods One
Cash Flow to Shareholders P4 P3
Environmental
Events S1 S2
Competitive Methods Two S3 S4

4. Organization Life Cycle
Growth
Industry Life Cycle
Transition
Inception
Growth
Maturity
Decline
Time

5. Industry, Organization, and Competitive Method Life Cycles
Growth
Industry Life Cycle
Competitive
Methods
Life Cycle
Firm Life Cycle
Time

6. A comparison of NPV and investment requirements of CSFs and CMs
Investments in CSFs
NPV $
Investment
required $
Investments
in CM
CSF1
10,000
50,000
CM1
5,000
25,000
CSF2
100,000
40,000
CM2
20,000
150,000
CSF3
1,500,000
800,000
CM3
6,000,000
3,400,000
Total
$1,610,000
$890,000
$6,025,000
$3,575,000

7. Market Value of Firm as Estimated by Aggregating NPVs of CMs
Unexplainable
portion of the
firm’s value
Total market value of the firm in $
Explainable portion of the firm’s value

8. Political instability
Relationship of Value Drivers Making Up a Force Driving Change and Competitive Methods Chosen with Subsequent Impact on the Cash Flow Stream of the Firm
Competitive Method
External Value Drivers
Greater
security
Face
recognition
Crime Rate
Internal Value Drivers
Outbreak of
food borne illness
Cost of capital
Demand
Security and
health policy
Terrorism events
Natural disasters
Political instability
Industry
Critical Success
Factors