ELEMENT OF STRATEGIC MANAGMENT

اَلسَّلاَ مُ عَلَيْكُمْ وَرَحْمَةُ اللهِ وَبَرَكَا تُهُ

WHAT HAVE I LEARNED TODAY

COMPETITIVE ADVANTAGE

⇨ Defined as anything that a firm does exceptionally well compare to its rivals.

      ✌✌  A company's competitive advantage may be its superior customer service, innovative products, strong distribution channels or low pricing- something unique that a firm offers and which sets them apart.

RESOURCE- BASED VIEW

👐 A firm's resource{such as skills, financial resources, human resources and physical resources} are most important in getting and sustaining a company's competitive advantage.

INDUSTRIAL/ORGANIZATION VIEW

👐  The industry in which the firm chooses to compete has a stronger influence on the firm's performance than the firm's internal resources such as management, marketing, and finance.

RESOURCES AND CAPABILITIES

Refer to inputs (such as equipment,human resources, processes,patents or finances) into a firm's production process.

There are divided into THREE CATEGORIES :
      👍TANGIBLE {asset that can be seen and quantified } = example production equipment and raw materials
     👍INTANGIBLE RESOURCES{ We cannot see or touch}= example patents, knowledge, and copyright.
      👍HUMAN RESOURCES{Skills, knowledge, abilities, intelligence, experiences and competencies}

While capabilities are referred to the firm's capacity to transform its resources into outputs valued by the firm's customer and which can generate profits for the firm.


THE RELATIONSHIP BETWEEN RESOURCES, ORGANIZATIONAL CAPABILITIES, COMPETITIVE ADVANTAGE AN STRATEGY
   

👏 A resource would be considered unique :

     

          💦Valuable

          💦Rare

          💦hard to Imitate and substitute

          💦Organized to exploit

{V-R-I-O}

VISION 

       🙀🙀Statement about what your organization wants to become.

       🙀🙀  Powerful motivator

       🙀🙀 must be aligned with the core values of both the individuals and the firm.

Example : 

MISSION

      😍 Is the purpose or reason for the organization's existence.

😽COMPONENTS OF MISSION STATEMENT

         ➤ Customers

         ➤products or services

         ➤Markets

         ➤Technology

         ➤Concern for survival, growth, and profitability

         ➤Philosophy

         ➤Self-concept

         ➤Concern for public image

         ➤Concern for employees

         

OBJECTIVES   

- Desired or specific result of a planned activity that should be achieved by a specific time.

- short, medium or long-term

- should be measured

{S-M-A-R-T} ⇉  Specific time, measurable, attainable/achievable, realistic, and time-phased.

LEVEL OF STRATEGIES