...INTRODUCTION Resource based as a basis for the competitive advantage of a firm lies primarily in the application of a bundle of valuable tangible or intangible resources at the firm's disposal and market based view Comparison of the Resource-Based vs Market-Based View market-based view (MBV) and the resource –based view (RBV) as two approaches to giving businesses the competitive edge they need to compete in their industries. Aside from having competitive advantage as their ultimate goal, the two approaches are also similar in the sense that they both make use of particular tools and models in their undertakings. They also differ in numerous ways, starting with their definitions, assumptions about the equilibrium of the market and the tools and models used. Nevertheless, despite their differences which may portray them as rivals, in practice the two approaches are rather complementary as the crux of this essay shall illustrate. By definition the market-based view is an outside in approach to competitive strategy; which as stated by D. Faulkner (2007) copes with competition through ‘astute market positioning’. In other words firms identify the opportunities and threats in their external environment through the use of tools such as the Product Life Cycle, Porter’s 5 Forces Model of industry analysis, Strategic groups, Scenario planning and models namely Porter’s Generic Strategies, Customer Matrix and Mintzberg’s 5P’s Model. Upon mapping out the various opportunities...
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...Contents Preface Acknowledgments ix xiii PART ONE OVERVIEW OF STRATEGIC MANAGEMENT 1. Strategic Management The Nature and Value of Strategic Management Dimensions of Strategic Decisions 4 Formality in Strategic Management 9 Benefits of Strategic Management 11 Risks of Strategic Management 11 The Strategic Management Process 11 Strategic Management as a Process 16 Summary 18 Key Terms 19 Questions for Discussion 19 2 3 PART TWO STRATEGY FORMULATION 2. SM_Prelims.indd 17 Company Mission What is a Company Mission? 23 The Need for an Explicit Mission 24 Formulating a Mission 24 Basic Product or Service; Primary Market; Principal Technology Company Goals: Survival; Growth; Profitability 26 Company Philosophy 28 Public Image 29 Company Self-Concept 33 Newest Trends in Mission Components 33 An Exemplary Mission Statement 35 Boards of Directors 37 Agency Theory 38 22 25 2/8/2012 10:17:09 AM Contents How Agency Problems Occur 39 Problems That Can Result from Agency 39 Solutions to the Agency Problem 40 Summary 41 Key Terms 41 Questions for Discussion 41 Appendix A: Company Vision 43 Appendix B: BB&T Vision, Mission, and Purpose 3. 4. SM_Prelims.indd 18 44 Corporate Social Responsibility and Business Ethics The Stakeholder Approach to Social Responsibility 52 The Dynamics of Social Responsibility 54 Types of Social Responsibility 57 Corporate Social Responsibility and Profitability 60 Sarbanes-Oxley...
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...INTRODUCTION TO STRATEGY AND LEADERSHIP Key questions Concepts/Models/approaches that can be used to answer the key questions: Applicability / Case facts support What are the forces behind globalisation Competitive forces 4&20 products to US and halal for Asia Technological forces Social forces AFL Sponsorship Political forces What are the challenges and benefits of globalisation Challenges (competition, distribution, macro-economic, socio-economic, financial, legal, physical, political, socio-cultural, labour, globalisation of Risk) Benefits (cost, timing, learning, arbitrage) What are the ways strategy can be developed? Processual Rational Seems to fit in this situation Evolutionary Systemic Family members on the board could influence cultural values etc. Fuzzy What’s included in a strategy development process and strategic planning? Defining organisational purpose (Where are we going?) External and internal environment analyses (What is the gap between where we are now and where we want to be?) Formulating and implementing strategy(How do we get there? And what are the financial aspects of value creation?) What are the three levels of strategy? Corporate Strategy Framework Business Functional What kinds of leadership style and approaches are there? Situational Transformational Transactional How does ethics and corporate social responsibility influence strategy? The classical view The socio-economic view Module 2:...
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...Related to the implications, Hamel and Prahalad (1989) had written an article about their unprecedented concept “Strategic Intent”. Placing the article in a wider debate “Strategic intent” is an ambitious and compelling dream that energises, which provides the emotional and intellectual energy for the journey to the future (Hamel and Prahalad, 1994). The article discusses the term “strategic intent” in a broad range of aspects; however, the main arguments of this article can be transfer into the debate of Resource-based view vs. Positioning. Apparently, the authors in this article incline to the idea of resource-based view. The resource-based view deals with the organisation internal resources and takes advantages of those to construct firm’s strategies (Wernerfelt, 1984). Regarding resource-based view, Grant (2007) suggests that “the key to profitability is through an internal focus which seeks to utilize the unique characteristics of the company’s portfolio of resources and capabilities” (Strategic fit). In contrast, Hamel and Prahalad (1989) point out that by optimising “strategic intent” and corporate challenges, organisations can be forced to be more...
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...Halinen Published online: 01 Feb 2010. To cite this article: Kristian Möller & Aino Halinen (2000) Relationship Marketing Theory: Its Roots and Direction, Journal of Marketing Management, 16:1-3, 29-54, DOI: 10.1362/026725700785100460 To link to this article: http://dx.doi.org/10.1362/026725700785100460 PLEASE SCROLL DOWN FOR ARTICLE Taylor & Francis makes every effort to ensure the accuracy of all the information (the “Content”) contained in the publications on our platform. However, Taylor & Francis, our agents, and our licensors make no representations or warranties whatsoever as to the accuracy, completeness, or suitability for any purpose of the Content. Any opinions and views expressed in this publication are the opinions and views of the authors, and are not the views of or endorsed by Taylor & Francis. The accuracy of the Content should not be relied upon and should be independently verified with primary sources of information. Taylor and Francis shall not be liable for any losses, actions, claims, proceedings, demands, costs, expenses, damages, and other liabilities whatsoever or howsoever caused arising directly or indirectly in connection with, in relation to or arising out of the use of the Content. This article may be used for research, teaching, and private study purposes. Any substantial or systematic reproduction,...
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...advantages and disadvantages of using a Web-based compensation tool versus a client-server based or stand-alone PC-based system and then give your opinion on which system would provide the most value to an organization’s stakeholders. Include three (3) facts to support your opinion? A few advantages of using the web compensation tool are, first web compensation tools can increase access to critical compensation information without the need for sophisticated or dedicated IT staffs and sophisticated technology infrastructures. Information can be accessed electronically or on an as needed basis. The second advantage is that e-compensation tools enable round the clock availability of meaningful compensation information to senior managers, Human Resources (HR) managers and employees, Whereas with a client based server applications are installed on a user's computer or workstation, and interact with data and programs on a server and this information is not readily available round the clock. The third e-compensation tools can streamline cumbersome tasks through the introduction of workflow functionality and real-time information processing, (Gueutel, 2005, p. 167). A disadvantage to the web-based compensation tool in comparison to a client based server is you have to constantly deal with security issues which include breach of information. The system that would essentially be more valuable to the stakeholder would be the web-based compensation tool, especially if you are dealing...
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...1993 Elsevier Science Publishers B.V. All rights reserved. Chapter 17 Marketing Strategy Models* Yoram (Jerry) Wind The Wharton School. University o/PennryIuonio. Philodrlyhio. P A 19104. U S A Gary L. Lilien Pennsyluanin Stare Uniriersity, Universiry Park, P A 16802, U S A 1. lntrcduction Many of the models and approaches outlined in other chapters of this book address single marketing issues (promotional spending, pricing, salesforce deployment, etc.) within the context of any organization where other factors are assumed constant. For the most part, such approaches are 'bottom-up', and closely akin to the operational philosophy of traditional ORIMS. Consider, in contrast, a large organization with several business divisions and several product lines within each division. Marketing plays a number of roles throughout that organization. At the organizational level, marketing can provide both perspectives and information to help management decide on what the mission of the corporation should be, what the opportunities of the organization might be, what strategies for growth it might have, and how it might develop and manage its portfolio of businesses. The resulting corporate policies provide guidelines fordevelopment of strategy at each business division. And, at the lowest level, the managers of each product and/or market within each division develop their own marketing strategies within the context of the policies and constraints developed at divisional levels....
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...Study Guide Chapter 1: What is Strategy and why is it important? What is Competitive Advantage? Competitive advantage. It is a superior performance relative to other competitors in the same industry or the industry average. Sustainable - competitive advantage. When a company is able to outperform its competitors or the industry average over a prolonged period of time. Competitive disadvantage Underperformance relative to other competitors in the same industry or the industry average. Competitive Parity Performance of two or more firms at the same level. The firm that possesses competitive advantage provides superior value to customers at a competitive price or acceptable value at a lower price. What is strategy? Strategy describes the goal – directed actions a firm intends to take in its quest to gain and sustain competitive advantage. Strategy is about creating superior value, while containing the cost to create it. Strategy is not a zero-sum game. It is not always the case that one party wins while all others lose. Win- win scenarios: when competitors cooperate, occasionally, with one another to achieve strategic objectives, we call this co-opetition. Strategic positioning is staking out a unique position in an industry that allows the firm to provide value to customers, while controlling costs. Strategy as a Theory of How to Compete. It provides managers with a roadmap to navigate the competitive territory. A firm´s strategy can be seen as its managers’ theory...
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...E-GOST TSER Contract of the European Union HPSE-CT-2002-50026 (Thematic Network) 1st workshop : April 3rd –4th, 2003 (Strasbourg) RESOURCES AND COMPETENCES PERSPECTIVES ON STRATEGY OF THE FIRM: A discussion of the central arguments F. Amesse, A. Avadikyan, P. Cohendet Introduction: In 1994, Wernerfelt received an award for the best paper of the decade in Strategic Management Review (A resource-based view of the firm, 1984). Considering the fortune of the article among practicing managers (Wernerfelt, 1995), he admitted that such a fortune had been leveraged by the 1990 article of Prahalad and Hamel in Harvard Business Review (“The Core Competence of the Corporation”). Directly addressed to people in management and strategy, this article was clearly prescriptive as to the best way to set winning strategies for the firm, especially as to diversification and the abusive use of SBUs (Strategic Business Units) in highly decentralized profit centres. “In the 1990s, top executives will be judged on their ability to identify, cultivate, and exploit the core competencies that make growth possible”. Since the 1990s, the resource based view (RBV) and the core competence approach (CCA) became very attractive for many researchers and consultants. Such interest was well supported by what seemed to be a clear and superior way of setting strategies by large Japanese groups which frequently served as a benchmark case of core competence management. The strong and pervasive trends...
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...NORTH- HOLLAND Marketing Orientation and Company Performance Industrial vs. C o n s u m e r G o o d s C o m p a n i e s George J. Avlonitis Spiros P. Gounaris Marketing orientation, still an intriguing concept for man),, carries the pledge of superior company performance through the satisfaction of customer's needs. This article draws conclusions from an empirical investigation showing that this relationship does really exist and, in the case of industrial markets, building a marketing orientation it is indeed a significant contributor to the company's performance. © 1997 Elsevier Science Inc. INTRODUCTION Recent studies [1-3] have tried to collect empirical evidence to investigate whether the adoption of marketing Address correspondence to Dr. George J. Avlonitis, Athens University of Economics and Business, Department of Management Science and Marketing, 76 Patission Str., Athens 104 34. Greece. orientation leads to better performance in the market. However, the way that marketing orientation is conceptualized tends to differ. For instance, while Hooley, Lynch, and Shepherd [1] conceptualized marketing orientation as a set of specific beliefs that form a certain company attitude/culture, Narver and Slater [2], as well as Kohli and Jaworski [3], explained the concept as a certain behavior. Furthermore, most of the available empirical investigations of the association between marketing orientation and company performance tend to draw general conclusions about...
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...Enterprise Resource Planning: Developments and Directions for Operations Management Research Robert Jacobs and Elliot Bendoly Operations and Decision Technologies, Indiana University, Bloomington, IN 47405 Decision and Information Analysis, Emory University, Atlanta, GA 30322 Abstract Enterprise Resource Planning (ERP) has come to mean many things over the last several decades. Divergent applications by practitioners and academics, as well as by researchers in alternative fields of study, has allowed for both considerable proliferation of information on the topic but also for a considerable amount of confusion regarding the meaning of the term. research two distinct research streams emerge. In reviewing ERP The first focuses on the fundamental corporate capabilities driving ERP as a strategic concept. A second stream focuses on the details associated with implementing information systems and their relative success and cost. This paper briefly discusses these research streams and suggests some ideas for related future research. Published in the European Journal of Operational Research 146(2), 2003 1 Introduction – The many views of ERP Speculation on the future development and success of ERP is the topic of many popular press articles. These articles, typically written by individuals associated with the ERP companies, are often focused on the merits of the featured software. Unfortunately, in order to distinguish the merits of alternate packages, authors...
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...mission and goals, (2) assess the environment, (3) appraise company capabilities, (4) craft the strategy, (5) implement the strategy, and (6) evaluate and control the strategy. Business Policy is a set of prescribed and discretionary statements, limiting actions of individuals in the firm, as set forth in directives and guides. Mission is the reason for which the firm exists, and what it will do. Basically, it describes the products/services to be supplied, the markets to be served, and the technology applied (if important). Vision Statement answers the question, What do we want to become? Goals express the aspirations of the firm, general ends that cannot be measured. Ex. “In unrelenting pursuit of perfection.” Objectives are specific targets to be accomplished by a specified time. Ex. “Profits will grow at the rate of 5% annually for the next five years.” Long-term objectives (5 years or more) are strategic objectives and define the desired character of the company, at the specified time. Strategy is simply the means or general actions to be taken to achieve long-term objectives. Strategic management is the work of the General Manager. General Manager is a person who is responsible for a profit center, as opposed to a functional manager who is responsible only for a cost or revenue center. Generic Strategy is the name for a group of similar specific strategies. Levels of Strategy 1. Corporate level. What types of businesses should we be in? 2. Business level. How do we compete...
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...Topic 1: Analysing the external environment Strategy – direction and scope of an organisation over a long term, which achieves the advantage of changing environment through its configuration of resources and competencies with the aim of fulfilling stakeholder expectations. Direction – Mission, vision, and course Scope – broad or narrow strategy Long term – 5-10years Environment – General environment & industry environment Resources – tangible and intangible Capabilities – capacity of organisation to integrate and deploy resources to achieve an obj. Stakeholders – society, suppliers, creditors, shareholders, employees, customers Levels of strategy * Corporate * Business General environment (Macro) – broad collection of factors that directly or indirectly have the potential to influence every firm in ever industry within the economy PESTDG framework * Identify trends * Explain trends * State if opportunity or threat * Explain why is it an opportunity or threat Segment | Trends | Political / Legal | Changes to workplace relations, carbon tax law | Economical | Rising interest rates, GFC, inflation rate, unemployment rate | Socio-cultural | Climate change, increase in casual workers, greater concern for health | Technological | Wireless communications, cloud computing, growth in hand held devices | Demographical | Aging population, growing disparity in income level | Global | Growth in Chinese and Indian economy, free...
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...Review of Marketing Research Review of Marketing Research VOLUME 1 Naresh K. Malhotra Editor M.E.Sharpe Armonk, New York London, England 4 AUTHOR Copyright © 2005 by M.E.Sharpe, Inc. All rights reserved. No part of this book may be reproduced in any form without written permission from the publisher, M.E. Sharpe, Inc., 80 Business Park Drive, Armonk, New York 10504. Library of Congress ISSN: 1548-6435 ISBN 0-7656-1304-2 (hardcover) Printed in the United States of America The paper used in this publication meets the minimum requirements of American National Standard for Information Sciences Permanence of Paper for Printed Library Materials, ANSI Z 39.48-1984. ~ MV (c) 10 9 8 7 6 5 4 3 2 1 CHAPTER TITLE 5 REVIEW OF MARKETING RESEARCH EDITOR: NARESH K. MALHOTRA, GEORGIA INSTITUTE OF TECHNOLOGY Editorial Board Rick P. Bagozzi, Rice University Ruth Bolton, Arizona State University George Day, University of Pennsylvania Morris B. Holbrook, Columbia University Michael Houston, University of Minnesota Shelby Hunt, Texas Tech University Dawn Iacobucci, Northwestern University Arun K. Jain, University at Buffalo, State University of New York Barbara Kahn, University of Pennsylvania Wagner Kamakura, Duke University Donald Lehmann, Columbia University Robert F. Lusch, University of Arizona Kent B. Monroe, University of Illinois, Urbana A. Parasuraman, University of Miami William Perreault, University of North Carolina Robert A. Peterson, University...
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...Excellence in Financial Management Course 12: Competitive (Part Intelligence (Part 2 of 2) Prepared by: Matt H. Evans, CPA, CMA, CFM This course provides more in-depth coverage about competitive intelligence – specific techniques and models used as well as CI Systems. Before taking this course, you should complete Part 1 of this course. This course is recommended for 2 hours of Continuing Professional Education. In order to receive credit, you will need to pass a multiple-choice exam which you can take over the internet at www.exinfm.com/training/course12-2 Chapter 1 Critical Concepts Before we get into Part 2 of this short course, let’s touch on the fundamentals behind competitive intelligence. From Part 1 of this course, we learned that competitive intelligence relies on a very analytical process to transform data and information into intelligence. We also understand that competitive intelligence is not just about studying the competition, but studying the entire external landscape - customers, suppliers, regulators, and all forces that impact the organization. Therefore, our analysis must be very broad in scope. The primary output from competitive intelligence is the ability to make forward-looking decisions. For example, Jack Welch, former CEO of General Electric determined strategy based on key intelligence questions: What is the detailed global position of your business and that of your competitors: market shares, strengths by product line, and by region...
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