Marketing Strategy and Management by Michael J. Baker (auth.)

By Michael J. Baker (auth.)

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By Michael J. Baker (auth.)

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Similarly, size and complexity have increased markedly and require more extensive and more intricate systems to maintain control. Without wishing to labour the analogy, the point being made is simply that managerial decision-making is a blend of routine and predictable events with occasional but potentially very hazardous interruptions. Therefore, it makes good sense to define and describe the routine occurrences and to develop standard operating procedures to deal with them. By doing so, it will be possible to delegate responsibility for routine to a lower level of management (or to a mechanical or electronic control system) and leave time free for the anticipating and planning functions.

Rather, they grimly hang on and, because of their weakness, have to resort to extreme tactics. The profitability of the entire industry can be persistently low as a result, cf. the world automobile and steel industries. 28 Marketing Strategy • International Competition Until recently most analyses of competition have focused upon competitiOn within a single national economy. Of course the importance of international trade is recognised and prompted Ricardo to articulate his theory of comparative advantage as long ago as 1817.

8 The role of government and chance in determining competitive outcomes. 9 The development of 'clusters' of competitive industries. 10 The nature and sources of competitive advantage. 11 The contribution of marketing to competitive success. After reading Chapter 2 you will be able to: 1 Define competition and the role it performs in ensuring that scarce resources are used to maximise satisfaction. 2 Appreciate that good theory usually reflects best practice and why learning through knowledge acquisition is more cost effective than learning by experience.

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