Interrelationship

between factors of
competitive advantage:
There are 4 factors that
generate: higher
efficiency, quality,
innovation and customer
responsiveness. These
factors are highly
interrelated because the
superior quality can lead
to higher efficiency and
innovation can increase
efficiency, quality and
responsiveness to
customers.
Example: If I offer a
different and innovative
product and this gets
success in today's market,
I can have a competitive
advantage over other
products in the design of
this.

Planning: A basic
management function
involving formulation
of one or more
detailed plans.
Example: A basic
management function
involving formulation
of one or more
detailed plans.

Direction: relationship in
which a person ,or the
leader influences others to
voluntarily work together
on tasks related.
Example: Iger joined
Disney as CEO in 2005,
succeeding ousted head
Michael Eisner after an
internal struggle.

Cost
competitiveness: Is
the ability of a
company or a country
to obtain profitability in
the market in relation
to its competitors.
Example: Home Depot
is an example because
a while ago said they
had the lowest prices
on the market and as a
client if you found
yourself a cheaper
product in another
business they will
equaled or down the
price.

Business
administration: A
Business Administration is
the office which includes
representatives of the
Municipality and business
owners.
Example: Establish and
carry out departmental or
organizational goals,
policies and procedures.

Organization is the control

of human and other
resources in the
accomplishment of predetermined objectives.
Example: how each
company has its own
department for a certain job
and keeping it organized.

Globalization: The worldwide

movement toward economic,
financial, trade and
communications integration.
Implies the opening of local and
nationalistic perspectives to a
broader outlook of an
interconnected and
interdependent world with free
transfer of capital, goods and
services across national frontiers.
Example: Travel and tourism
allows globalization of many
things, like the exchange of
money, cultures and knowledge.

Competitive
enviroment
management.

Knowledge management: Is the process of

capturing, developing, sharing, and effectively
using organizational knowledge. It refers to a multidisciplinary approach to achieving organizational
objectives by making the best use of knowledge.
Example: Feedback database - A company may
have a database of feedback from customers and
employees and shares this feedback with their
design and research and development
departments. All members of the organization
would be able to enter feedback into the database
and an integrated approach would be taken to
understanding the shared information.

Innovation and
quality: The
process of
translating
invention into a
good or service
that creates
value or for
which customers
will pay. a
measure of
excellence or a
state of being
free from
defects.
Example: Being
able to adapt to
consumer
behavior and
new
technologies
while
maintaining a
strong customer

Velocity of Money: Rate

at which Money
circulates, changes
hands, or turns over in a
economy in a given
period.
Example: A farmer and
amechanic, with just $50
between them, buy new
goods and services from
each other in just three
transactions over the
course of a year
Farmer spends $50
on tractor repair from
mechanic.Mechanic buys
$40 of corn from
farmer.Mechanic spends
$10 on barn cats from
farmer.

Technological change: Is an
increase in the efficiency of a
product or process that results in
an increase in output, without an
increase in input. In other words,
someone invents or improves a
product or process, which is then
used to get a bigger reward for
the same amount of work.
Example: The telephone is an
example of a product that has
undergone a technological
change. It has undergone many
different changes over the years
that have made it more efficient.

Collaboration across borders To

be globally competitive, regions need
to take into account the dual
innovation phenomena of increasing
international linkages and the
persisting importance of geographic
proximity.
Example: The report which
comprises six in-depth case studies
for six European cross-border regions
found that enhanced cross-border
cooperation for innovation can lead
to greater global openness, increased

Service: In the manufacturing

context, is integrated into supply
chain management as the
intersection between the actual
sales and the customer point of
view. The aim of high performance
service management is to optimize
the service-intensive supply chains,
which are usually more complex
than the typical finished-goods
supply chain.
Example: Two operators exchange
management information to
manage their interconnected
networks (inter-operator
management). For commercial and
security reasons each of these
operators will try to hide the internal
structure of its network from the
other operator; only those pieces of
management information that are
absolutely necessary will be
exchanged.