Transcript Document

MGTECON 580: Class 9
Did the course change your life (a little bit) ?
It makes sense to look at firm strategies with a
theoretical priori?
These hypotheses are given in IO, Strategy,
Location, Growth Theory?
• Profits dissipate, if there is no machine creating them
permanently
• Without core capacities, assets, the is no persistent profit
• Core capacities have to be sustained, renewed (some
strategies dilute them)
• Making use of core versus periphery increases profits
• Firm growth and economic growth are driven by
intangible investments
Countries are very different, governments intervene
everywhere
• Knowing this and making use of it increases profits
Europe has a gap in productivity, but maybe
leisure, environmental concerns, coverage of
• Social net, small innovations, distribution, absence of
poverty are worth this gap
US is a ten trillion economy, Europe an eight billion
economy,and
thisefficiency
allows youcan
to estimate
GNP for
Welfare
be in conflict,
but
knowing
mayand
open
a new
• Individual this
countries
to relate
all model
numbers to GDP
• Most numbers gain importance only if they are compared
to others
Firms, Markets, & Policy
Strategies in Europe
To be achieved:
• Knowledge: diversity of European
Business
• Ability: strategy evaluation guided
by theory based framework
• Confidence: diversity can be
turned into advantage for persons,
firms, countries