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1 Business Strategy Management

The purpose of business strategy management is: to operate and develop management resources, such as people (human resources), objects (physical resources), money (funds), and information, and also operations in a more effective manner; and to effectively manage and operate the business strategy for making the business successful by adapting it to the external environment.

1 - 1 Business Strategy Techniques

1-1-1 Business Strategy

Business strategy is a strategy that is created to attain the business objectives of a company on the basis of the corporate philosophy (or management philosophy). In order for a company to attain its business objectives, it is important how the company strengthens the business status in the market and dominates the market. Therefore, in the environment surrounding the company, the business strategy theory theoretically indicates what must be done and in what way in order to carry out a business successfully. This theory was proposed by Michael E. Porter in the 1980s. In business strategy, management innovation is positioned at the top. Management innovation is a strategy that a company revises its past direction and puts efforts into new corporate activities.

p. 145 · PDF 149

Name	Expected synergy effect
Sales synergy effect	Effect on sales activities that involve sharing of distribution channels, such as commodity distribution, and brand images
Production synergy effect	Effect of reducing the cost of production activities by sharing facilities and human resources, and by purchasing a large volume of raw materials in bulk.
Investment synergy effect	Effect of reduction in various investments, such as facilities and equipment, and development and research expenses of new products
Management synergy effect	Effect on management activities that is obtained through sharing of the experience, knowledge, and knowhow of the management

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Synergy effects · 1 practice questions