Chapter 1 1. Define strategic competitiveness, strategy, competitive advantage, above-average returns, and the strategic management process. Strategic competitiveness is achieved when a firm successfully formulates and implements a value-creating strategy. Strategy is an integrated and coordinated set of commitments and actions designed to exploit core competencies and gain a competitive advantage. Competitive advantage is when a firm implements a strategy that its competitors are unable to duplicate
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CHAPTER 1 WHAT IS STRATEGY AND WHY IS IT IMPORTANT? McGraw-Hill/Irwin 1. Understand why every company needs a sound strategy to compete successfully, manage the conduct of its business, and strengthen its prospects for long-term success. 2. Develop an awareness of the four most dependable strategic approaches for setting a company apart from rivals and winning a sustainable competitive advantage. 3. Understand that a company’s strategy tends to evolve over time because of changing circumstances
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In order to develop a good strategy it is essential that you know your strengths and weaknesses, i.e. what it is you are good at. An internal analysis is “a process of identifying and evaluating an organizations’ specific characteristics, including its resources, capabilities, and core competencies” (p. 106, Coulter 2005). Internal analysis is important in order to find out where improvements are needed and what you could exploit more in order to gain competitive advantage. Internal analysis takes
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Foundations to Business Strategy Introduction It is a fact that HR professionals at all levels must operate strategically today. This means that programmes must be scrutinized to ensure that they contribute to the capability of the organization to achieve its goals. Once the basics are learned, it becomes easy to talk and practice the operations in the organization’s daily activities. Careful planning and effective leadership are essential for the success of any business or organisation. Only then
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2/27/12 Generic Competitive Strategies - eNotes.com Generic Competitive Strategies Generic Competitive Strategies Three of the most widely read books on competitive analysis in the 1980s were Michael Porter's Competitive Strategy, Competitive Advantage, and Competitive Advantage of Nations. In his various books, Porter developed three generic strategies that, he argues, can be used singly or in combination to create a defendable position and to outperform competitors, whether they are
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Generic Competitive Advantage May 2, 2012 The Generic Competitive Strategies can be used as a business tool which helps strategists understand how the position of a company within its industry can be directly related to the strategy it employs. The strategy employed can then be analyzed to understand where a company's competitive advantage lies, with a view to maintaining it. Porter (1985). In the early 1980s the most widely read books on competitive analysis were written by Michael Porter.
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Competitive Advantage: Question 1/2: A competitive advantage is a position that a firm occupies in its competitive landscape. Cost advantage Cost advantage A firm possesses a sustainable competitive advantage when it has value-creating processes and positions that cannot be duplicated or imitated by others, that lead to the production of above normal rents, in that it provides a long-term advantage that is not easily replicated. Sources of competitive advantage: Competitive advantage Competitive
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The firm will hope that this process results in a competitive advantage in the marketplace they operate in. VRIO falls into the internal analysis step of these procedures, but is used as a framework in evaluating just about all resources and capabilities of a firm, regardless of what phase of the strategic model it falls under. VRIO is an acronym for the four question framework you ask about a resource or capability to determine its competitive potential: the question of Value, the question of Rarity
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DEPARTMENT OF INSURANCE & ACTUARIAL SCIENCE STRATEGIC MANAGEMENT: AN INDISPENSABLE APPARATUS TO CREATE SUSTAINABLE COMPETITIVE ADVANTAGE IN THE VOLATILE ZIMBABWEAN SHORT-TERM INSURANCE MARKET? By HENSLEY MADAMOMBE N010 7541D SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS OF THE B.COM (HONOURS) DEGREE IN RISK MANAGEMENT AND INSURANCE SUPERVISOR: MR A. NYANHETE MAY 2014 Dedication To my family You have been my source of inspiration and hard work. You sacrificed everything that you had for
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13/11/13 Strategy and the Quest for Competitive Advantage ¡ The heart and soul of any strategy are the actions and moves in the marketplace that a company makes to strengthen its competitive position and gain a competitive advantage over rivals ¡ A creative distinctive strategy that sets a company apart from rivals and yields a competitive advantage is a company’s most reliable ticket to above average profitability ¡ Competing with a competitive advantage is more profitable than competing
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