▪Emergent Strategy:a pattern of action that develops over time in the absence of goals or missions, or despite goals and missions.❖SWOT Analysis and Strategy (starting point of formulating strat) ➢Evaluating Organizational strengths ▪Organizational strengths:are skills and abilities enabling an organization to conceive of and implement strategies. ▪Common organizational strengths: Are organizational capabilities possessed by numerous competing firms?▪Distinctive competencies:are useful for competitive advantage and superior performance. ➢Imitation of distinctive Competencies:▪Sustained competitive advantage: •Occurs when distinctive competence cannot be easily duplicated •Is what remains after all attempts at strategic imitations cease▪Strategic imitation of a distinctive competence is difficult when: •It is based on unique historical circumstances.•It is difficult for competitors to understand its nature or character•It is based on a complex phenomenon (e.g. organizational culture)➢Evaluating the weakness ▪Organizational weaknesses
•Skills and capabilities that do not enable an organization to choose and implement strategies that support its mission ▪Weaknesses can be overcome by: •Investments to obtain the strengths needed. •Modification of the organization’s mission so it can be accomplished with the current workforce. ▪Completive disadvantage: Occurs when an organization fails to implement strategies being implemented by competitors.➢Evaluating an Organization’s Opportunities and Threats•Organizational opportunities: Are areas in the organization’s environment that may generate high performance •Organizational threats: Area areas in the organization’s environment that make it difficult for the organization to achieve high performance. ❖Formulating Business-level Strategies ➢Porter’s Generic Strategiesand implementation ▪Differentiation strategy:An organization seeks to distinguish itself from competitors through the quality of its products or services..Implement:Increase in price. Companies who take this strategy typically charge more for the EXPERIENCE. ▪Overall cost leadership strategy: an organization attempts to gain competitive advantage by reducing its cost below the costs of competing firms. EX: Walmart. Less expensive. Implement: marketing and sales focus on simple product attributes and how these product attributes meet customer needs in a low cost and effective manner. Manufacturing typically helps with large runs of highly standardized products. ▪Focus strategy:an organization concentrate on specific regional market, product line, or group of buyers. Chosen a niche in the market place to appeal to. Can be geographical or people. Implement:either differentiation or cost leadership, depending on which one is the proper basis for competing in or for a specific market segment, product category, or group buyers.
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