Busi 110 Organizational Strategy

Busi 110 Organizational Strategy - Carmela Anastacio Busi...

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Carmela Anastacio Busi 110 Pohopien Organizational Strategy How to Create a Competitive Advantage Resources – Help to create and sustain an advantage over competition. Include: assets, capabilities, processes, information, and knowledge of the organization The goal of organizations is to create and sustain as many competitive advantages as possible. Sustainable Competitive Advantage Competitive advantage Providing greater value for customers than competitors can. Sustainable competitive advantage A competitive advantage that other companies have tried unsuccessfully to duplicate and have, for the moment, stopped trying to duplicate. Four Requirements for Sustainable Competitive Advantage The VRINE Model Five basic characteristics that determine whether a resource or capability can help a firm compete and achieve superior performance: VRINE Value – A resource or capability is valuable if it enables a firm to take advantage of opportunities or to fend off threats in its environment. Rarity – is the resource scarce relative to demand. Imitability – The rate at which a firm's underlying resources, capabilities, or core competencies can be duplicated by competitors. VRINE Non-substitutability – A competitor cannot achieve the same benefit by using different combinations of resources and capabilities. Exploitability – A company’s ability to get the value out of any resource or capability that it may generate. Strategy Making Process Assess – does the current strategy warrant changes to sustain a competitive advantage. Analyze – examine internal strengths and weaknesses as well as external threats and opportunities. Select – the type of strategy that will improve the strategic performance. Three Steps of the Strategy-Making Process 1 -Assessing Need for Change Top-level managers are often slow to recognize need for change because of previous success….. competitive inertia . (reluctance to change successful strategies)
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Managers should look for signs of strategic dissonance
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