Chapter 1 1. Define strategic competitiveness, strategy, competitive advantage, above-average returns, and the strategic management process. Strategic competitiveness is achieved when a firm successfully formulates and implements a value-creating strategy. Strategy is an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage. Competitive advantage is when a firm implements a strategy that its competitors are unable to duplicate
Words: 4673 - Pages: 19
9-798-062 REV: FEBRUARY 25, 2006 PANKAJ GHEMAWAT JAN W. RIVKIN Creating Competitive Advantage Some companies generate far greater profits than others. The pharmaceutical maker ScheringPlough produced an economic profit of more than $10 billion during the period 1984-2002. That is, the accounting profit it generated exceeded its cost of equity capital by that amount. Over the same period, U.S. Steel produced an economic loss of nearly $500 million; its cost of capital exceeded its accounting
Words: 10603 - Pages: 43
view of a firm? Ans. The resource-based view (RBV) is a way of viewing the firm and in turn of approaching strategy. Fundamentally, this theory formulates the firm to be a bundle of resources. It is these resources and the way that they are combined, which make firms different from one another. It is considered as taking an inside-out approach while analyzing the firm. This means that the starting point of the analysis is the internal environment of the organization. Resources of the firm can include
Words: 712 - Pages: 3
and how to overcome them. The final step in strategic analysis is the assessment of a firms intellectual assets and how to retain them such as: the knowledge worker, means of networking and technological enhancement of employee collaboration. Strategy formulation is developed on several levels and begins with the formulation of a business-level strategy; achieving and sustaining competitive advantage. Next would be the formulation of a corporate level strategy which addresses a firm’s effort
Words: 1755 - Pages: 8
Business Review. IT Doesn’t Matter Carr’s main argument is quite simple. IT is extremely important within corporations, but IT has become a universal resource for firms. The basis for a sustained competitive advantage is scarcity, not ubiquity. Hence, IT has become a commodity and therefore it is no longer a strategic advantage – the significance of IT doesn’t matter anymore. He argues, “By now, the core functions of IT ¬– data storage, data processing and data transport ¬– have become available
Words: 584 - Pages: 3
are considered to be micro-firms, those with less than 50 employees are small-firms and those with less than 250 employees are considered as medium-firms. In the US however the size of small firms sums up to 100 employees and medium sized firms may have less than 500 employees. SMEs are key actors in the world economy because they are an important part of GDP and play a big role for employment. Since today’s world becomes more and more globalized it is important that firms can compete on an international
Words: 1727 - Pages: 7
nations Leads to: - More and better choices for consumers and firms - Lower prices of goods for consumers and firms - Higher profits and better worker wages (because imported input goods are usually cheaper) - Higher living standards for consumers (because their costs are lower) - Greater prosperity in poor countries Absolute advantage principle - A country should produce only those products in which it has absolute advantage or can produce using fewer resources than another country - i
Words: 1121 - Pages: 5
of ways that prove to be benefits of an adaptation marketing strategy. This essay will explore the advantages and disadvantages of the two international marketing strategies, with integrated examples of each strategy provided. To conclude this argument, the concept of combining both standardization and adaptation strategies when operating internationally will be discussed. Standardization Advantages The standardization strategy denotes that corporations offer a uniform marketing program and/or process
Words: 1503 - Pages: 7
Introduction: The competitive landscape of the twenty-first century will be characterized by increasing globalization, advanced technological development, and other factors that will lead to an environment that is more dynamic and charged with rivalry. Firms will act and react in a dance of sorts, but one involving very high stakes—even survival. This chapter introduces terms and concepts
Words: 11328 - Pages: 46
mission and core competencies. This amalgamation defines the “what to do of the business.” The firm exists as a part of its internal and external environment. 4. The Internal and externals environment can be defined by the 4 c’s framework. the external environment serves as an input for the strategic decision making and the Internal environment ie the company’s policy, resources etc. help produce the firm the desired output. The external environment ie the competition, customer and the
Words: 1082 - Pages: 5
