...Strategic Management-2 Case Study Synopsis Of Case:-1) Competitive Advantage in new patent regime 2) Strategic leadership and competitive advantage 1) Competitive Advantage in New Patent Regime: A Study of the Indian Pharmaceutical Industry In the global business environment, traditional factors e.g labour costs and superior access to financial recourses and raw materials can still create a competitive advantage in the current competitive landscape. In the current landscape, the recourses, capabilities and the core competencies in the firm’s internal organization likely have a stronger influence on its performance than do conditions in the external environment. The IPI is one of the largest and most advanced among the developing countries. It is the 4th largest by volume i.e. around 8 percent and 11th largest in terms of value i.e. around 1.5 percent. The Indian pharmaceutical industry is a heterogeneous mixture of firms split between the organized and unorganized sectors. The control and support of the Indian government plays a critical role in the competitiveness of the IPI. According to Sampath (2006), areas of government support critical to the IPI include speed of processing of patent applications, R&D conducive environment, and reduced price Control, access of land for expansion and the patent amendment act, 2005. The government can also help increase the potential of the nascent venture capital industry in India, with an emphasis...
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...Zoraida Bergan MGMT 479/Strategic Management Homework #3 November 25, 2015 1. Explain why the concept of competitive advantage is central to the study of strategic management. Answer: The strategic management involves developing and maintaining competitive advantages. These competitive advantages need to be created and sustained effectively to overcome the 5 competitive forces. Only by overcoming competitive forces can firms achieve above average returns. Because it’s always about ensuring your organization performs successfully. 2. Briefly describe the three generic strategies-overall cost, leadership, differentiation, and focus. Answer: Overall cost leadership generic strategy-involves developing a competitive advantage based on low cost position while appealing to an industry wide market. Differentiation generic strategy- involves developing a competitive advantage based on uniqueness perceived by the customer while appealing to industry wide market. Focus generic strategy involves concentration on a narrow market segment while creating a competitive advantage of either uniqueness perceived by the customer or low cost position. 3. Explain the relationship between the three generic strategies and the five forces that determine the average profitability within an industry. Answer: The five forces limit industry profitability. Business units that identify with multiple generic strategies will have higher performance than those that identify with...
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...1. Design and Emergence Approach of Strategic Management Strategic management is the process of designing an organization vision, mission and goals. It develops set of actions for formulating the strategy. Some arguments exist in corporate that ’how strategy is made’ either through design or emergence approach. According to emergence approach, strategy emerges through the initiative taken by the manager for enhancing the performance of firm. Here, the strategy is formed without any long term plan. The manager just frames it, to meet out the day to day operations of the firm. For instance, Sam Walter, the founder of Wal-Mart, established his store in 1962. His competitor opened the store in urban areas, to get huge profit. But for a change, Sam Walton opened his store in rural area, which brings him success, as he got customers 50 miles away from the stores. Here, he does not apply any strategic plan. Strategy came out through his response to the problem. Emergent approach of framing strategy is common in earlier days, and it become quite successful too. But according to design approach, strategy is intentionally formed by the organization to achieve the goals. For instance, consider an organization is going to expand the business globally. For this, a well planned strategy should be devised to meet out the requirements of various countries. Once the strategy is devised, it should be implemented by keeping in mind about the mission and vision of the organization. Mostly top...
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...Chapter # 5 Building Competitive Advantage Through Business-Level Strategy Business Level Strategy Is the objective of developing a firm specific business model that will allow a company to gain a competitive advantage over its rivals in a market or industry. The way that strategic managers define their company’s business is the first step in crafting business level strategy. Customer Needs and Product Differentiation Customer needs are desired, wants or cravings that can be satisfied by means of the attributes or characteristics of a product a good or service. Two factors determine which product a customer chooses to satisfy these needs: The price of the product and the way a product is diffetentiated from other products of its type. Product differentiation is the process of designing products to satisfy customers needs. A company obtains a competitive advantage when it creates, designs, and supplies a product in a way that better satisfies customer needs than its rivals do and chooses the correct pricing option the one that results in the level of demand that optimizes profitability. Customer Groups and Market Segmentation Market Segmentation is the way a company decides to group customers, based on important differences in their needs or preferences, in order to gain a competitive advantage. One principal way of grouping customers and segmenting the market is by what customers are able and willing to pay for a particular product, the other principal method of segmenting...
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...Write the summary after completely learning about the chapter 3 “Human Resource Management Strategy and Analysis” A strategic plan is an organization’s plan for how it will match its internal strengths and weaknesses with external opportunities and threats in order to maintain a competitive advantage. The human resource (HR) managers must address three basic challenges: 1) support organizational productivity and performance improvement efforts; 2) employees play an expanded role in employers’ performance improvement efforts; 3) HR must be more involved in designing – not just executing – the company’s strategic plan. Strategic planning hierarchy includes specifying an organization’s mission, objectives, and actions (or specific results) associated with each objective. Therefore, reaching a strategic objective involves accomplishing a set of key actions along the way. Through the objectives and key actions set forth in this strategic plan, we will position ourselves to succeed in an ever-changing environment by efficiently and effectively carrying out our mission. Figure 1 Strategy Planning Hierarchy For example, figure 1 illustrates the strategic hierarchy embedded in the HumRRO Strategic Plan. At the top of the hierarchy is the HumRRO mission. The mission clarifies our organization’s direction and purpose. It also allows HumRRO staff and clients to see and understand how they fit into the organization’s plans for the future. From there the plan cascades through greater levels...
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...strategy, and how they differ from one another Identify the strategy process and describe the purpose of each step Explain the concepts of strategic thinking and analysis Describe the various levels of strategy and the links between them Explain the drivers, challenges and benefits of globalisation Discuss the role of the accountant in the strategy process PRACTICE • • • Have you completed the questions in the Study Guide? Have you completed the Learning Examples in the Student Notes? Have you completed the knowledge check questions from this module? Key revision areas: • The different approaches to strategy: rational, processual, evolutionary, systemic • The levels of corporate strategy and the scope/content of each • The drivers, challenges and benefits of globalisation • Evolution of corporate strategy as a concept – Porter, Mintzberg • Operational effectiveness v. strategic positioning • Developing the strategy – see Focus slide • Ethics in leadership: classical and socioeconomic views Strategy and leadership Approaches to strategy Strategy process • Rational – Ansoff, Chandler, Porter’s five forces • Processual – emergent strategies • Others – evolutionary, systemic • External environment – PESTEL (opportunities; threats) • Internal environment – strategic and operational drivers, people/organisational drivers (strengths; weaknesses) • Evaluating and selecting growth options –...
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... MBA-502 July 27, 2008 “Strategic competitiveness can be attained only when the firm’s selected structure is congruent with its formulated strategy” (Gomez-Mejia et al., Chapter 7, pg 28). Kudler Fine Foods continues to manifest growth based on Mrs. Kudler’s original vision of a one stop gourmet food store. Having direct control over hiring, ordering and customer service, she has built the company into an expanding entity. The following is a discussion of strategy implementation, technology and opportunities, strategic recommendations and external forces to be aware of. Most growing companies have used information technologies (IT) to enhance operations and improve customer service. Mrs. Kudler has plans to add to the inventory and ordering automation by introducing new e-commerce capabilities and an online catering link (Kudler Fine Foods Portal, Strategic Plan, pgs 15-16). Strategic Information Systems have the ability to amplify strengths into potential sustainable competitive advantage. For example, British Airways implemented customer service online and self checking at the airports. Though the restructuring effected employee morale due to job loss, the company increased in efficiency and cost leadership. Mrs. Kudler is known for her kindness and generosity to employees, so the company will only prosper with new IT applications. Two main approaches of Strategic Information Systems are mostly used: inwardly focused and outwardly...
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...Strategic Human Resources Management What is meant by a strategic approach to HRM? How can a strategic approach to HRM be a source of competitive advantage to an enterprise? Illustrate your view by reference to relevant literature and case studies drawn from GSN406 course materials. “The most powerful of the strategic configurations of power remains people... you must work on developing an organizational espirit de corp that aligns the hearts and minds of your staff with the aims of the business”. (Boar 1997, p. 196) Acronyms used in this paper: HR Human resources HRM Human Resources Management SCA Sustainable Competitive Advantage SHRM Strategic Human Resources Management Student: Jason D Bingham Student no.: Unit: GSN406 HR Management Issues Assessment: 1 (15% weighting) Word limit (( 1000) 1047 (excl. list of references etc.) Lecturer: Due date: Friday 25 May 2001 Table of contents 1.0 Introduction 1 2.0 Definitions 1 2.1 Human Resource Management 1 2.2 Strategic management 1 2.3 Competitive advantage 1 3.0 Strategic approaches to HRM 1 4.0 How SHRM can provide competitive advantage 2 5.0 Validation of SHRM: Case studies of successful firms 3 ...
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...University of Phoenix MBA-502 “Strategic competitiveness can be attained only when the firm’s selected structure is congruent with its formulated strategy” (Gomez-Mejia et al., Chapter 7, pg 28). Kudler Fine Foods continues to manifest growth based on Mrs. Kudler’s original vision of a one stop gourmet food store. Having direct control over hiring, ordering and customer service, she has built the company into an expanding entity. The following is a discussion of strategy implementation, technology and opportunities, strategic recommendations and external forces to be aware of. Most growing companies have used information technologies (IT) to enhance operations and improve customer service. Mrs. Kudler has plans to add to the inventory and ordering automation by introducing new e-commerce capabilities and an online catering link (Kudler Fine Foods Portal, Strategic Plan, pgs 15-16). Strategic Information Systems have the ability to amplify strengths into potential sustainable competitive advantage. For example, British Airways implemented customer service online and self checking at the airports. Though the restructuring effected employee morale due to job loss, the company increased in efficiency and cost leadership. Mrs. Kudler is known for her kindness and generosity to employees, so the company will only prosper with new IT applications. Two main approaches of Strategic Information Systems are mostly used: inwardly focused and outwardly...
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... MBA-502 July 27, 2008 “Strategic competitiveness can be attained only when the firm’s selected structure is congruent with its formulated strategy” (Gomez-Mejia et al., Chapter 7, pg 28). Kudler Fine Foods continues to manifest growth based on Mrs. Kudler’s original vision of a one stop gourmet food store. Having direct control over hiring, ordering and customer service, she has built the company into an expanding entity. The following is a discussion of strategy implementation, technology and opportunities, strategic recommendations and external forces to be aware of. Most growing companies have used information technologies (IT) to enhance operations and improve customer service. Mrs. Kudler has plans to add to the inventory and ordering automation by introducing new e-commerce capabilities and an online catering link (Kudler Fine Foods Portal, Strategic Plan, pgs 15-16). Strategic Information Systems have the ability to amplify strengths into potential sustainable competitive advantage. For example, British Airways implemented customer service online and self checking at the airports. Though the restructuring effected employee morale due to job loss, the company increased in efficiency and cost leadership. Mrs. Kudler is known for her kindness and generosity to employees, so the company will only prosper with new IT applications. Two main approaches of Strategic Information Systems are mostly used: inwardly focused and outwardly...
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...1.0 WHAT ARE THE ELEMENTS OF STRATEGIC MANAGEMENT? Strategic management consists of the analyses, decisions and actions an organization undertakes in order to create and sustain competitive advantages. The strategic management process is made up of four elements: situation analysis, strategy formulation, strategy implementation, and strategy evaluation. These elements are steps that are performed, in order, when developing a new strategic management plan. Situation Analysis The situation analysis provides the information necessary to create a company mission statement. Situation analysis involves "scanning and evaluating the organizational context, the external environment, and the organizational environment" (Coulter, 2005). This analysis can be performed using several techniques. Observation and communication are two very effective methods. To begin this process, organizations should observe the internal company environment. This includes employee interaction with other employees, employee interaction with management, manager interaction with other managers, and management interaction with shareholders. In addition, discussions, interviews, and surveys can be used to analyse the internal environment. Organizations also need to analyse the external environment. This would include customers, suppliers, creditors, and competitors. Several questions can be asked which may help analyse the external environment. It examines the company’s relationship with its customers and...
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...company lost FM482million ($120 million) on its major business activities. In 1992 a new group chief executive, Jorma Ollila was appointed. Jorma Ollila’s mission was to formulate a strategy that was going to rescue the company from its losses, into a profitable organisation. The report focus on Nokia’s reason to select one area of development out of four, the significance of the introduction of new Android software for Nokia’s chosen strategy and the importance of management teams to strategic choice. In dealing with the first section on the study case , the author analysed the three elements of the strategy context used by the management team and then discussed strategic risks associated with focusing on the single development area out of four. Lynch (2012:421) defines strategy context as being concerned with the circumstances surrounding and influencing the way that a strategy develops and operates. The second section deals with the second question and the author discussed the advantages offered by Android mobile phones over Symbian’s mobile and how an organisation can gain its competitive advantage using “Porter’s Five Forces Model”. The report also provides brief discussion on the advantages of technology-driven strategies. Lynch (2012:568)...
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... nd THE APPLICATION OF COST, DIFFERENTIATION AND HYBRID STRATEGY IN BUSINESS OPERATIONS: WILL HYBRID STRATEGY BECOME THE NEW COMPETITIVE STRATEGY? Mas Bambang Baroto, 2Muhammad Madi Bin Abdullah International Business School (IBS), Universiti Teknologi Malaysia International Campus, Kuala Lumpur, Malaysia E-mail: 1mbbaroto@ic.utm.my (Corresponding Author), 2muhdmadi@ic.utm.my 1 ABSTRACT Both strategic management researchers and practitioners have realized the importance of the cost, differentiation and combination strategies for effective organizational performance and excellence. Recently, many large business companies in different part of the world have been applying both strategies (hybrid strategy) at the same time, rather than applying a single strategy at one period of time. The implementations of those three strategies are commonly used by the big giant companies where their business operations level is ranging from domestic, regional, international and global. Thus, the principal aim of this paper is to explore the application of these three strategies (cost strategy, differentiation strategy, and hybrid strategy) in various business companies. Keywords: Cost leadership strategy, differentiation strategy, single strategy, hybrid strategy INTRODUCTION In the competitive market, certain industries are having very heavy competitive rivalry among the company players. The coverage of the industries could be domestic, international, or global of which are depending...
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...CONCEPT OF COMPETITIVE ADVANTAGE IS CENTRAL TO THE STUDY OF STRATEGIC MANAGEMENT, AND EXAMINE THE USE OF PORTER’S GENERIC STRATEGEIS BY COMPANIES TO COMPETE. KEY TERMS Competitive advantage. This is the favourable position an organization seeks in order to be more profitable than its competitors. Strategic management. It is the systematic analysis of the factors associated with customers and competitors (the external environment) and the organization itself (the internal environment) to provide the basis for maintaining optimum management practices. The objective of strategic management is to achieve better alignment of corporate policies and strategic priorities. Porter’s generic strategies. These are three general types of strategies developed by Michael Porter that are commonly used by businesses to achieve and maintain competitive advantage. Company. It is a voluntary association formed and organized to carry on a business. Types of companies include sole proprietorship, partnership, limited liability, corporation, and public limited company. INTRODUCTION The concept of competitive advantage is central to the study of strategic management, since a company or an organization must follow an aligned strategy to outperform their rivals in the industry. Michael Porter introduces three generic strategies that a firm may apply in order to do so they include; overall cost leadership, Differentiation and Focus. In order to create and sustain competitive advantage, companies...
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...Week II Reflection Paper for Team C Strategic planning is not a new concept and is commonly referred to as the solution to many organizational problems. Strategic planning is a continual and systematic process in which decisions are made about intended future outcomes. Planning takes time, work, and the ability to confront difficult obstacles. Financial outcomes are used as a component to measure the success, failure, and strategy effectiveness. S. Scott (2012) stated in the second paragraph, “The focus of a strategic plan is usually on the entire organization, while the focus of a business strategic plan is usually on a product or service”. Without a realistic plan and obtainable goals an organization has no direction. Market opportunity is a factor in shaping a company’s strategic plan, which is why the advantage and disadvantage evaluation process is important. Team C discussions validate that the following week two course objectives are easily understood and are clear to the team: • Objective 2.1 - Measure an organization’s internal and external environments using environmental scanning. • Objective 2.2 - Determine relevant business competitive strategies. Objective 2.1 is easily understood as it relates to environmental scanning, which is the possession and utilization of information about trends within an organizations internal and external environment. Environmental scanning is similar to the SWOT (strengths, weaknesses, opportunities, and threats) analysis...
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