Chapter 1 - Introduction

Definition
1. Understanding how firms create, capture & sustain competitive advantage
  1. Analysing strategic business situations & formulating strategic plans
    1. SWOT analysis & Competence Analysis (e.g. Resource audit & Porter's Value Chain)
    2. Implementing strategy & organizing firm for strategic success
2. Aids in formulation of vision
  1. Analysis of the internal/external environment
    1. Selecting one or more strategies for creating value for customers & other shareholders
What is Strategy?
1. Long-term scope & direction of firm
  1. Enables it to achieve advantages
    1. Through its configuration of resources & competencies
      1. With the aim of fulfilling stakeholders expectations
Vision, Mission & Objectives
1. Visions are realised through strategies
  1. Strategies are action plans: moving organisation towards its vision
    1. In determining strategy, firm must identify conditions in internal & external environment
      1. Internal: conditions within the firm affecting choice & use of strategy
        What resources does firm possess & how does it use them to develop core competencies
      2. External: Conditions outside firm affecting performance
Key Characteristics
1. Performance Priented
  1. Concerned with doing well & satisfying stakeholders
2. On-going in nature
  1. Dynamic & Not Static
3. Concerned with conditions inside & outside firm
4. Oriented to present & future
Perspectives
1. External
  1. Identifies Opportunities/Threats
    1. Opp: Conditions that help org to achieve vision
    2. Threats: Conditions that prevent org from achieving vision
    3. Exploit opp & mitigate/neutralise risks
2. Internal
  1. RBV - Analysis of internal environment
    1. Unique Characteristics of each org.
  2. Sustainable competitive advantage = value creating strategy that other firms cant duplicate/imitate
    1. Core competencies impt basis for sustainable competitive advantage
      1. Core competencies = resources & capabilities (related to functional/operational level skills)
Strategic Decisions
1. Corporate
  1. Scope of org & value creating activities
    1. e.g. acquisition of new biz, portfolio of products & services, geographical scope
  2. Sets basis for other strategic decisions
  3. Which industry/industries should we be in?
2. Business
  1. staying competitive in a particular market
  2. innovation, appropriate scales, responses to competitors moves
3. Operational/Functional
  1. How to run biz activities to deliver effective corporate & business strategies in terms of resources, processes & growth
    1. Sales, Marketing & Distribution.....
4. Not always straightforward..
  1. Rational Decision Making
  2. Satisficing Decision Making
Strategy Determination
1. Emergent
  1. everyday routines/processes/activities leading to decisions becoming direction of org.
    1. Unpredictable - Need flexible strategic approaches
    2. Bottom-up approach of strategy evolving
    3. Accidental discoveries
2. Intended
  1. Deliberately formulated

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Chapter 1 - Introduction

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	Created by Sabrina Lim almost 10 years ago