...help the organization achieve its competitive advantage. Changes in the environment such as widespread globalization, rapid technology and other such factors have led to organizations realizing the significance of controlling human resources in a firm. Since organizations have also become more dynamic and complex, the need to manage human resources has become more essential. In recent years, many individuals demanded for a more strategic approach to managing people in a firm, rather than the traditional methods, and thus the idea of strategic human resource management (SHRM) was adopted. Strategic human resource management is a branch of human resource management, and it can be defined as ‘ the linking of human resources with strategic goals and objectives in order to improve business performance and develop organizational culture that foster innovation, flexibility and competitive advantage.’ (Sinha, R 2007). This essay is going to focus on how strategic human resource management helps organizations achieve a sustained competitive advantage. Sustainable competitive advantage is the position a firm develops in relation to its competitors that are not duplicable an unsurpassable than its competitors. Recently scholars have come to the basis of HR skills and competences as sources of competitive advantage. Human resource practices as well as competitive strategies are based on the assumption that employee behaviors are needed for each type of competitive strategy and that these...
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...competencies that could offer to its owner a sustainable competitive advantage. Therefore, resources and competencies approach first appeared as a theory of competitive advantage or a theory of “performance of the firm” (Argyres & Zenger, 2007). It is only recently, in the last 20 years that organizations have started using the resource based view approach on strategy. Nowadays, they view it as the most important key development in international business research and strategic management, an approach that gives a coherent vision based on a firm's capabilities to help determine the strategic resources necessary for the firm's survival and growth within a particular market place. As Hitt et al (2001) stated, “the resource based model assumes that each organization is a collection of unique resources and capabilities that provides the basis for its strategy and that is the primary source of return.”. It suggests that in order for a firm to sustain competitive advantage, it must not only have resources and capabilities but also have a firm control over it and they must meet certain basic criteria such as being: valuable, rare, inimitable and non substitutable such that it is impossible to be copied or replicated (VRIN). Although a resource based view strategy sounds like the better way to go, others have wondered if this approach is at all necessary or bring any more insight than the traditional understandings into a successful strategy to survive and thrive into a competitive market,...
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...final cumulative balanced scorecard, income statement and balance sheet. B – Discuss the generic competitive strategy you selected for your company. Include the following in your discussion: What actions were built into your strategic plan to achieve competitive and financial success with that strategy. Why you selected the strategy you used. The company’s competitive strategy exclusively involves the specifics of management’s game plan for competing successfully; its specific efforts to please the customers, its offensive and defensive moves to counter the maneuvers of the competition, its responses to shifting market conditions, its initiatives to strengthen its market position and the specific kind of competitive advantage it is trying to achieve (Kreitner, 2010). The five competitive strategies are: low-cost provider strategy; broad differentiation strategy; focused (or market niche) low-cost strategy; a focused (or market niche) differentiation strategy and best-cost provider strategy (Kreitner, 2010). F Troop shoes used the Low-Cost Provider strategy. The Low-Cost Provider strategy is a competitive approach used in markets; where the customers are “price-sensitive” consumers. The company’s target was to have the lower costs of shoes than comparable quality products of our rivals. In making sure F Troop shoes has the low-cost advantage over its rivals, company managers have to ensure that they incorporate features and services that its consumers consider essential...
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...Important? Screen graphics created by: Jana F. Kuzmicki, Ph.D. Troy University McGraw-Hill/Irwin Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved. “Strategy means making clear-cut choices about how to compete.” Jack Welch Former CEO, General Electric “Without a strategy the organization is like a ship without a rudder.” Joel Ross and Michael Kami Chapter Learning Objectives 1. Understand the role of business strategies in moving a company in the intended direction, growing its business, and improving its financial and market performance. 2. Develop an awareness of the four most reliablestrategic approaches for setting a company apart from rivals and winning a sustainable competitive advantage. 3. Learn that business strategies evolve over time because of changing circumstances and ongoing management efforts to improve the company’s strategy. 4. Understand why a company’s strategy must underpinned by a business model that produces revenues sufficient to cover costs and earn a profit. 5. Gain awareness of the three tests that distinguish a winning strategy from a so-so or flawed strategy. 6. Learn why good strategy and good strategy execution are the most trustworthy signs of good management. 1-4 Chapter Roadmap What Do We Mean by “Strategy?” Strategy and the Quest for Competitive Advantage Identifying a Company’s Strategy Why a Company’s Strategy Evolves Over Time A Company’s Strategy Is Partly Proactive and ...
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...include the fit test, the competitive advantage test, and the performance test. Passing the fit test means the strategy is well matched to the company’s situation. Moreover, the competitive advantage test is used to make sure the strategy can help the company achieve a sustainable competitive advantage. In addition, passing the performance test indicates that a winning strategy produces strong company performance. Before IPO The primary mission and goal of Facebook CEO, Mr. Zuckerberg, before the company’s IPO, is to “connect the world digitally with Facebook” and increase its total membership (Rusli, 2014). Mr. Zuckerberg kept his primary mission of Facebook and cared less about the revenue. His strategy of Facebook at this point was to attract as many users as he would without placing more importance on how to make a lot of money. Facebook’s strategy before IPO is not a winning strategy. First of all, Facebook’s strategy at this point did not match well to the company’s best market opportunity of its initial public offering. Since Facebook wanted to go public, it needed a good performance to attract its potential investors and shareholders. The ability of gaining revenue is an important symbol and sign that potential investors will look for before deciding whether to invest. However, Mr. Zuckerberg’s primary mission of Facebook showed that “Facebook was not originally created to be a company” (Rusli, 2014), which would be harmful for the company to attract more potential...
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...situation? 2. Where does the company need to go from here? Business(es) Buyer to be in and market positions to stake out needs and groups to serve to head Direction 3. How should it get there? A company’s answer to “how will we get there?” is its strategy 1-4 What Do We Mean By “Strategy”? Consists of competitive moves and business approaches used by managers to run the company Management’s “action plan” to Grow the business Attract and please customers Compete successfully Conduct operations Achieve target levels of organizational performance 1-5 The Hows That Define a Firm's Strategy How How How How to grow the business to please customers to outcompete rivals Strategy is HOW to . . . to manage each functional piece of the business (R&D, production, marketing, HR, finance, and so on) to respond to changing market conditions to achieve targeted levels of performance 1-6 How How Choosing the “Hows” of Strategy Strategic choices about “how” are based on Trial-and-error organizational learning about what has worked and what has not worked Management’s appetite for taking risks Managerial analysis and strategic thinking about how best to proceed, given market conditions and the company’s circumstances In choosing a strategy, management is in effect saying, “Among all the many different business approaches and ways of competing we could have chosen, we have decided...
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...EFFECT OF INFORMATION TECHNOLOGY IN THE CREATION AND MAINTENANCE OF SUSTAINABLE COMPETITIVE ADVANTAGE A. Talebnejad[1] Faculty of Management and Accounting Shahid Beheshti University Email: taleb149@yahoo.com Abstract -By the appropriate use of information technology, organizations can achieve sustainable competitive advantages. This technology because of including some characteristics such as being up-to-date, fast and precise and having different geographic localities all the time, has improved organizational efficiency, effectiveness and performance. In this article, we intend to investigate the role and effect of information technology in the creation and maintenance of sustainable competitive advantages from two different approaches: market-based approach and the resource-based approach. In the Market-based approach, meeting customer's and creating values for them, using information technology and the issue of achieving the competitive advantage and position in the market by organizations are addressed. In the resource-based approach, compatibility of the organization's resources such as those of information technology and organizational skills, particularly managerial ones are investigated. Amongst different organizational skills and resources, only managerial skills of information technology can create a sustainable competitive advantage. Keywords: Information Technology, Sustainable Competitive Advantage, Creation of Value for Customers, Resource-Based Approach, Market-Based...
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...Porter (1980) pointed, the essence of strategy is about setting a goal and cultivating sustainable competitive advantage to achieve this decision. However, organizations have many different perspectives about strategy’s choice. The purpose of this essay is to critically review ‘Competing on Capabilities: The New Rules of Corporate Strategy’ (Stalk et al, 1992). The position of the article in strategic debate will be examined first, followed by its main strengths and weaknesses respectively. Put the article in a broader debate The contents of the article can be ascribed to different debates in strategy academia. However, resource based view (RBV) versus positioning view may be the most appropriate debate for this article. Basically, this debate reflects that company’s strategy is influenced by company’s internal resources or external industry environment (Whittington, 2001). Stalk et al (1992) hold the view that organizations can succeed; the key is whether the companies can transfer their fundamental business processes into the capabilities, which can deliver superior value to the customers. This can be seen as authors emphasize RBV rather than the opposing view. Resource based view is identifying and classifying the firm’s inside assets which give the firm competitive advantages (Wernerfelt, 1984). Specifically, internal resources which give the firm sustainable competitive advantages must be valuable, rare, inimitable and irreplaceable (Barney, 1991). Stalk et al (1992)...
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...Green Marketing: A path for achieving Competitive Advantage through Customer Satisfaction, Trust and Confidence. Introduction In 1970s the word “GREEN “grabbed the attention of industrialist & others. Green is coined in Europe to refer to a particular politics & lifestyle . The concept is famous in United Kingdom & some other countries but it is unfamiliar in the international business environment due to the lack of universal consistent meaning. Green marketing incorporates a broad range of activities including product modification , changes to production process , packaging changes& also changing advertising strategies. Thus,Green marketing involves developing and promoting products and services that satisfy customers want and need for Quality, Performance, Affordable Pricing and Convenience without having a detrimental input on the environment.Environmentally responsible or "green" marketing refers to the satisfaction of consumer needs, wants, and desires in conjunction with the preservation and conservation of the natural environment. After a misguided attempt at green marketing in 1980s & 1990s now marketers are getting right. The time has emerged where consumers demand products with quality , convenience & affordability with environmental soundness. The conventional marketing is out and green marketing is in. Concept of Green Marketing Green marketing refers to the process of selling products and/or services based on their environmental benefits. Such a product or...
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...organisations seek to develop sustainable competitive advantage. In broad terms, two distinct approaches have emerged from the debate about this central issue within strategy content: the positioning approach and the resource-based approach (or more accurately, approaches). Much of the debate has concentrated upon two key questions: • Is competitive advantage achieved by concentrating on either low cost or differentiation or should a strategy seek to exploit both low cost and differentiation? • Does an organisation develop strategy to respond to or shape the environment in which it exists – is strategy outside-in or inside-out? As the primary purpose of the tools of strategic analysis is to help organisations to develop and implement successful strategies, then an understanding of the underlying context in which these models and frameworks can be applied is an important requirement. By exploring the development of these competing approaches to competitive advantage and the debate between them, this Session sets out to provide this contextual understanding. Your Objectives By the end of this session you should be able to: • Outline how the tools and frameworks of strategic analysis are utilised by the positioning and resource-based approaches to create sustainable competitive advantage. • Understand the debate between those advocating positioning or resource-based approaches to the search for sustainable competitive advantage....
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...competition more aggressive, and effective strategies have become vital in order for companies to remain competitive in the vigorous marketplace. The paper will study the two most commonly used theories within strategic planning, the Industrial Analysis and the Resource-Based View, to see which is more effective in order to increase financial performance in a hypercompetitive environment. The paper will first look at the overall effect of hypercompetition on the marketplace. Secondly, the Industrial Analysis effect on financial performance in hypercompetition will be examined, and thirdly, the effect the Resource-Based View has on financial performance considering hypercompetitive challenges. Finally, the paper ends by concluding that a strategy based on RBV will have greater effect on financial performance in a hypercompetitive environment, which suggests that managers' should spend more resources concerning companies' internal environment than the external in order to increase their return on investments. 2 INTRODUCTION Globalisation has been identified as a key driver of hypercompetition which has transformed the marketplace by higher degree of uncertainty, rapid technological changes and price wars (Harvey, Novicevic, & Kiessling, 2001). Hypercompetition has toughened competition, forcing firms to respond with better ideas at a faster pace and leaving less room for mistakes. In order to achieve...
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...Not a particular multinational enterprise (MNE) strategy, but “strategy around the globe” Most fundamentally about “strategy” before being “global” About entering foreign markets, but also how domestic firms strategise by competing against each other and dealing with foreign entrants 1 27/05/2015 Outline • A global global-strategy book • Why study global strategy? • What is strategy? • Fundamental questions in strategy • What is global strategy? • What is globalization? • Global strategy and globalization at a crossroads 3 Why Study Global Strategy? • Job and career aspiration opportunities • Awareness of what is going on in the world • Avoid downside risks of globalization 2 27/05/2015 Porters Critique Too Many Firms Pursue Best Practice and Seek Operational Effectiveness Through Benchmarking, TQM, JIT Etc. But This Is Not Strategy. Strategy Is About Being Different, Not Being ‘As Good As’. What is Strategy? • Origin-Greek word (strategos)-art of the general Sun Tzu, Chinese military strategist in 500 B.C. Modern-day application to business and competition dates to the 1960s • Plan versus Action - strategy is “explicit, rigorous formal planning” versus “a set of flexible, goal-oriented actions” • Strategy as Theory-how to compete successfully Firms have both intended and emergent strategies One firm’s strategies may not work in all situations Past success does not guarantee future success It...
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...P113979 23/01/2012 | Table of Contents Executive summary 3 Introduction 4 Business level strategy 4 Competitive advantage 5 Competitive strategy 6 Strategy clock 7 Hybrid strategy 8 Porters five forces 10 Advantages to using a Hybrid strategy 11 Threat of new entrants: 11 Bargaining power of suppliers: 11 Bargaining power of buyer: 11 Disadvantages to using a Hybrid strategy 12 Threat of substitutes: 12 Threat of rivalry with competitors: 12 Difficulty in sustaining: 12 Conclusion 13 Recommendations 14 Cost reduction that don’t affect quality 14 Deter from price wars 14 Differentiate 14 References 15 Executive summary This report aims to discuss the Hybrid strategy utilised by Asda, this report will be based on the following objectives: * Identify the strategy employed by ASDA in order to achieve competitive advantage * Critically evaluate the strategy identified * Provide recommendations for continued success and sustainability A collection of secondary information and data was gathered in order to obtain appropriate and information. Asda are a subsidiary of Wal-Mart, therefore it is assumed that the strategies used by Wal-Mart are also used by Asda in the same way. Introduction Asda are a well known organisation which started to operate in the 1920’s In June 1999, now a successful company once more, Asda was bought by Wal-Mart Stores Inc. and became part of the world’s biggest and best retailer. Asda’s...
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...been integrated into a single platform by technology. The businesses and markets are becoming dynamic and advancement in technology have questioned the sustainability of competitive advantage. All the industries and organizations all over the world are under tremendous pressure to improve productivity, quality and speed. In order to manage these factors, managers are using the tools such as TQM, benchmarking, and re-engineering. Operational improvements are taking place but it has not been able to provide sustainable profitability to the organizations. And gradually, these tools of measurement have taken the place of strategy. In his five-part article, Michael Porter explores how that shift has led to the rise of mutually destructive competitive battles that damage the profitability of many companies. As managers push to improve on all fronts, they move further away from viable competitive positions. Porter argues that operational effectiveness, although necessary to superior performance, is not sufficient, because its techniques are easy to imitate. In contrast, the essence of strategy is choosing a unique and valuable position rooted in systems of activities that are much more difficult to match. Porter thus traces the economic basis of competitive advantage down to the level of the specific activities a company performs. Now, let us briefly analyze the different points that Micheal Porter is trying to focus in this article. i. Operational Effectiveness is not strategy ...
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...What are the different forms of organisational learning and how can these concepts be useful? Organisations today are faced with a constant change and very turbulent economic environment. Due to fast growing economies and need to survive in such a “hostile” environment organizations are enforced to continuously seek for different approaches on how to achieve sustainable competitive advantage. As Senge (1990) remarks: "The rate at which organizations learn may become the only sustainable source of competitive advantage." Continuous learning in organisations was presented as a requirement and advocated by Argyris and Schon in 1978. “Organisational learning has been viewed as a source of competitive advantage that helps organisations respond to changes in their institutional environments via adopting and diffusing innovations that will contribute towards improving their performance”. (Sisaye and Birnberg, xiii) Pressures from globalization, technology developments, mergers and acquisitions are testing organisations and forcing them to learn how to anticipate and respond to these rapid changes, complexities and most importantly uncertainties that are hard to predict. Schein (1983) argues that there are three levels of organizational learning culture, cognitive, behavioral and artifactual, where: 1. Behavioral learning deals with the capacity of organizational processes, structures and systems to support learning. 1. Cognitive learning opposite to behavioral...
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