Professional Documents
Culture Documents
STRATEGIC
MANAGEMENT
COMPETITIVE ADVANTAGE
ANALYSIS
UNIT 6: COST ADVANTAGE
UNIT 7: DIFFERENTIATION ADVANTAGE
STRATEGY
TO GIVE CONSISTENCY
AND COHERENCE TO
individual decisions
NOT A DETAILED PLAN
http://www.youtube.com/watch?v=ibrxIP0H84M
http://www.youtube.com/watch?v=mwc073nNl3Q
STRATEGY
STRATEGY
SUCCESS
SUCCESS
IMPLEMENTATION.
THE DEVELOPMENT OF
A BUSINESS STRATEGY
A BUSINESS STRATEGY IS SOMETHING RELATIVELY RECENT, BUT ITS
ANTECEDENTS HAVE A MILITARY ORIGIN.
AS
THE
SPECIFIC
@ GREAT IMPORTANCE
@ SIGNIFICANT RESOURCES
@ NOT EASILY REVERSIBLE
60s and 70s: Corporations became enthused with corporate planning. Such
enthusiasm was parallel to the governments economic and social planning. Planning
was performed via lineal programming, cost-benefit analysis,
http://www.youtube.com/watch?v=mwc073nNl3Q&NR=1
* Competition exists when the resources are limited and the objectives of
the competitors are incompatible. The difference between competition of
nature and that of human beings is STRATEGY.
3. STRATEGY AS A GOAL
WHERE DOES THE COMPANY WISH TO BE IN THE
FUTURE-------> Strategy joins MISSION + VISION. It
creates a direction that guides strategy formulation.
HAMEL Y PRAHALAD---> The crucial element of good
companies is the strategic intent, an obsession to obtain
leadership globally.
Traditional strategic formulation (internal resources and external
opportunities adjustment), does not lead to long term
competitiveness---> Business success (Virgin, music) is due to an
unstoppable ambition which produces an energy for innovation,
risk and permanent improvement.