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Creating Competitive Advantage

In: Business and Management

Submitted By yokoono
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Chapter 1 SGMT: Creating Competitive Advantages Overview * performance is directly linked mgr made strategy choices and the ability to execute it successfully
Romantic view of leadership – leader is the key force in determining an org’s success * Ex: Steve Jobs and Apple praise, or CEO of company making bad decisions
External control view – focus is on external factors that may +vely or –vely affect a firm’s resources * Ex: IMAX did well as action movies came out, or companies -vely affected by recessions * Neither is completely right; leaders can make a diff, but must be aware of opportunities/threats in the external environment and understand their firm’s resources/capabilities

What is Strategic Management? * Can’t just make many minor changes to be successful → must be proactive, anticipate change, make significant changes if necessary * Challenge to mgrs: decide on strategies that will persist over time, execute in turbulent times

Defining Strategic Management

* Sgmt → the analyses, decisions, actions an org undertakes to create + sustain competitive adv. * Competitive advantage → what makes the org’s offerings superior to competitors * Superiority is in the eyes of customers; could come from quality, uniqueness, price, etc * Main elements (1) there are 3 ongoing processes: analysis, decisions, actions * Analysis of strategic goals (vision, mission, objectives) and env * Decisions of where to compete and how * Actions involve allocating resources and executing strategy
(2) sgmt studies the reasons for some firm outperforming others * What kind comp adv, how to make it unique/uncopyable * Can’t just achieve sustainable comp adv through operational effectiveness – all companies do this * Must do things differently; Ex. Walmart has unique, hard to copy activity systems w adv...

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