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Chapter 7 - Organisational Strategy In Global Environment


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Unformatted text preview: ness Strategy Strategy Through its strategy, the organization seeks to use and develop core competences to gain a competitive advantage. Strategy allows the company to shape and manage its domain to use existing competences and develop new ones to make it a better competitor. The Value Creation Cycle The Sources of Core Competences Sources Specialized resources 1. Functional resources: the skills possessed by an organization’s functional personnel 2. Organizational resources: the attributes that give an organization a competitive advantage such as the skills of the top­management team or possession of valuable and scarce resources Coordination Ability Coordination An organization’s ability to coordinate its functional and organizational resources to create maximal value Effective coordination of resources leads to competitive advantage. – Can be achieved through the control systems – Centralization or decentralization of authority Global Expansion and Core Competences Competences Transferring core competences abroad – Transfer core competence overseas to produce cheaper or improved product Establishing a global...
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