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1、•TheGlobalEconomy–Goods,people,skills,andideasmovefreelyacrossgeographicborders.–Movementisrelativelyunfetteredbyartificialconstraints.–Expansionintoglobalarenacomplicatesafirm’scompetitiveenvironment.•Short-term:Whereisthefastestgrowthlikelytooccur?•Lo
2、ng-term:Wherewillsustainablegrowthoccur?GlobalEconomy(cont’d)•TheMarchofGlobalization–Increasedeconomicinterdependenceamongcountries—theflowofgoodsandservices,financialcapital,andknowledgeacrosscountryborders•Higherperformancelevels—quality,cost,product
3、ivity,productintroductiontime,andoperationalefficiency–Increasedrangeofopportunitiesforcompaniescompetinginthe21st-centurycompetitivelandscape•Liabilityofforeignness—therisksofparticipatingoutsideofafirm’sdomesticcountryintheglobaleconomy•Theamountoftim
4、erequiredforfirmstolearnhowtocompeteinmarketsthatarenewtothem.TechnologyandTechnologicalChanges•TechnologyDiffusion–Thespeedatwhichnewtechnologiesbecomeavailable•DisruptiveTechnologies–Technologiesthatdestroythevalueofexistingtechnologyandcreatenewmarke
5、ts•PerpetualInnovation–Therapidityandconsistencywithwhichnew,information-intensivetechnologiesreplaceolderonesTechnologicalChanges•TheInformationAge–Theabilitytoeffectivelyandefficientlyaccessanduseinformationhasbecomeanimportantsourceofcompetitiveadvan
6、tage.–Technologyincludespersonalcomputers,cellularphones,artificialintelligence,virtualreality,massivedatabases,electronicnetworks,internettrade.TechnologicalChanges(cont’d)•IncreasingKnowledgeIntensity–Knowledgeasacriticalorganizationalresourceforcreat
7、inganintangiblecompetitiveadvantage–Strategicflexibility:thesetofcapabilitiesusedtorespondtovariousdemandsandopportunitiesindynamicanduncertaincompetitiveenvironments–Organizationalslack:slackresourcesthatallowthefirmflexibilitytorespondtoenvironmentalc
8、hanges–OrganizationalcapacitytolearnI/OModelofAbove-AverageReturns•DominanceoftheExternalEnvironment–Theindustryinwhichafirmcompeteshasastrongerinfluenceonthefirm’sperformancethandothechoicesmanagersmakeinsidetheirorganizations.•
