(BQ) Part 2 book "Business economics" has contents: Corporate strategy and pricing policy, market structures, other types of imperfect competition, labour markets, financial markets, the macroeconomic environment, macroeconomics – inflation and price stability, the global economy,.and other contents. | H_HTitlePagecase_HTitlePage 11 CORPORATE STRATEGY AND PRICING POLICY LEARNING OBJECTIVES Look at the meaning of strategy • Be shown the key stages in developing and implementing strategy • Outline the main features of the resource-based model • Explain the idea of emergent strategy • Outline the idea of logical incrementalism • Explain the main features of market-based strategies including value chain analysis, cost leadership, differentiation and niche marketing Analyze the processes and challenges of implementing strategy • • • • In this chapter you will: Explain the concept of the margin • Discuss the issues facing firms in making pricing decisions covering a range of pricing strategies Cover a variety of pricing strategies that firms can use After reading this chapter you should be able to: • Give a clear definition of strategy • Outline at least two frameworks for strategic analysis • Outline some benefits and limitations of strategic planning 255 H_case_Chapter 256 Part 4 Microeconomics – The Economics of Firms in Markets INTRODUCTION In this chapter we will be looking at aspects of corporate strategy and pricing policy. Strategy is a controversial subject with many different points of view but we will present an outline of the key issues. We are going to start by looking at the idea of corporate strategy and then at some of the principal pricing strategies that firms in imperfectly competitive markets can adopt. Pricing strategies are not relevant in perfect competition because firms are price takers and have no control over the price they charge. BUSINESS STRATEGY As noted above, the concept of strategy is a controversial one. There are many books written on the subject and intense debates between academics, between business leaders and between academics and business leaders about exactly what it means. What follows is an outline of the main schools of thought. Whenever you .
