(BA) Strategic Management 6e

(BA) Strategic Management 6e - Strategic Management 6e...

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Strategic Management 6e Dimensions of Strategy Strategy is an abstract concept that incorporates many different aspects including the following: Corporate versus business Science versus art External versus internal Formulation versus implementation Elements of Strategy The strategy framework is made up of different components. They include the following: External Competitive and Market Environment – which is the setting in which the firm does business within. It is made up factors such as competition, market and customers, technology, economics and demographics. Firm’s Stakeholders’ Preferences is the interested parties and their preferences with respect to the firm and its strategy. Some important stakeholders are top management, owners, and labour unions. Strategy is made up four different components and they are the following 1. – sets the direction of the firm for all of the stakeholders who will be involved in the strategic process. 2. Competitive Position(s) – the competitive position is the product and market focus of the company as perceived by its customers. 3. Competitive Advantages – competitive advantages are aspects of superiority that a firm has developed over its competition. They ultimately allow the firm to compete successfully in its chosen competitive position. 4. Competitive Tactics – competitive tactics are the ploys and actions taken that effectively allow a firm to upgrade their competitive advantages or change their competitive position. Firm’s Resources and Capabilities – resources and capabilities represent the skills, knowledge, asset, capital, brand name, patents, etc. that allows a firm to develop competitive advantages. – the structure is the division of the firm into efficient units, while coordination is the control and integration of the different tasks to insure effectiveness and efficiency. Resources and capabilities must be organized properly to be potent competitive advantages. Firm Performance – assess the three types of performance (financial, operational and strategic). Performance is used as the metric upon which strategy is assessed. The key issue in assessing strategy is looking for areas of misfit or where future conditions may create a misfit. Another important aspect is to continually look for a better competitive position and better competitive advantages for the firm. Continual improvement or strategic upgrading has become an extremely important part of strategy assessment.
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Strategic Management 6e SWOT Analysis – is a primary tool for examining strategic issues involving strengths and weaknesses in the firm’s competitive advantages and opportunities and threats that exist in the industry environment given the firm’s competitive position. SUMMARY OF THE EXTERNAL INDUSTRY ANALYSIS
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This note was uploaded on 05/20/2010 for the course BUSINESS Book Summa taught by Professor N/a during the Spring '10 term at Open Uni..

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(BA) Strategic Management 6e - Strategic Management 6e...

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