The Blackwell Encyclopedia of Management, Strategic by John McGee

By John McGee

The recent version of The Blackwell Encyclopedia of administration: Strategic administration incorporates a new preface through the present editor, John McGee. He recognizes the sign contribution of Derek Channon and descriptions the major present developments within the box of strategic administration. totally up-to-date re-creation covers over a hundred and sixty key phrases and ideas in strategic administration; includes contributions from greater than fifty five foreign participants; offers extra particular cognizance to 'competitive method' and 'competitive advantage'; absolutely treats the 'resource-based view', with fresh advancements round the 'knowledge- dependent view'; Introduces the 'new economy', in particular economics of information and knowledge and the character of community externalities; Outlines the foremost present traits within the box of strategic administration within the editor’s preface.

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Additional info for The Blackwell Encyclopedia of Management, Strategic Management (Blackwell Encyclopaedia of Management) (Volume 12)

Sample text

A profit maximizing cartel attempts to maximize the aggregate profits of all firms, and makes the same price and output decisions as the multiplant firm, equating the cartel’s overall marginal cost with the industry’s marginal rev enue. The distribution of the market between the firms is determined by marginal cost consid erations, and agreement is reached between firms as to the redistribution of profits, with the firms producing most of the output (the lowest cost ones) making payments to higher cost firms in order to reduce the incentive of the latter to expand their output.

Ec o n o m i e s o f s c a l e and minimum efficient scale effects, for example, force the aspiring entrant to barriers to entry and exit come in on a large scale (with all the risks and costs this entails, particularly if incumbents are unable to accommodate the new entrant and are thus expected to retaliate), or accept a cost dis advantage. In addition, the absolute size of the required investment in certain industries and the fact that such investment may have to be made up front, and can be unrecoverable, limits the pool of potential entrants and may act as a deter rent for smaller potential entrants.

Cambridge, MA: Harvard University Press. Harrigan, K. R. (1981). Barriers to entry and competitive strategies. Strategic Management Journal, 2, 395 412. Porter, M. E. (1979). How competitive forces shape strategy. Harvard Business Review, 57, 2, (March/April), 137 45. Porter, M. E. (1980). Competitive Strategy: Techniques for Analyzing Industries and Competitors. New York: Free Press. Porter, M. E. (1985). Competitive Advantage: Creating and Sustaining Superior Performance. New York: Free Press.

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