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www.cdeledu.com china distance education holding limitedFor this assignment, the Group will analyze the assigned Companys current condition. You will use the text chapters 1 through 3 as your framework for the analysis, and will incorporate information from external sources including the company and other credible sites.deliverable will be presented in APA format, will include appropriate topical headings to organize and segment the paper, with correctly formatted citations and references.Minimally the report will include the following:Vision and MissionCore Competencies(Internal) Strengths and Weaknesses(External) Opportunities and ThreatsSegment Environmental ScanCompetitive Advantage hitt_ppt_12e_ch01.pptx hitt_ppt_12e_ch02.pptx hitt_ppt_12e_ch03.pptx Unformatted Attachment Preview Chapter 1 Strategic Management and Strategic Competitiveness © 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 1–1 Learning Objectives Studying this chapter should provide you with the strategic management knowledge needed to: 1. Define strategic competitiveness, strategy, competitive advantage, aboveaverage returns, and the strategic management process. 2. Describe the competitive landscape and explain how globalization and technological changes shape it. 3. Use the industrial organization (I/O) model to explain how firms can earn above-average returns. 4. Use the resource-based model to explain how firms can earn aboveaverage returns. 5. Describe vision and mission and discuss their value. 6. Define stakeholders and describe their ability to influence organizations. 7. Describe the work of strategic leaders. 8. Explain the strategic management process. © 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 1–2 Twenty-First Century Competition Globalization The global economy Rapid technological change Today’s competitive markets © 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Increasing importance of knowledge and people 1–3 Competitive Advantage Formulation and implementation of a superior valuecreating strategy Commitments and actions to achieve above-average performance and returns What the firm will do Competitive advantage © 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. What the firm will not do 1–4 The Strategic Management Process © 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 1–5 Increasing The Global Competitive Landscape • Market volatility and instability due to the rapid pace of change in markets • Blurring of market boundaries • Globalized flow of financial capital • Need for flexibility, speed, innovation, and integration in the use of technology • Strategic and operational complexity of global-scale competition • Rising product quality standards Decreasing • Traditional time for adapting to change • Traditional sources of competitive advantage • Traditional managerial mindset © 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 1–6 Hypercompetition Global economy Use of price-quality positioning to build market presence Strategic options in hypercompetitive environments Creation of new know-how and use of first-mover advantage © 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Technology Protection or invasion of established geographic or product markets 1–7 Competitive Success Factors Are market/ customer-needs oriented Have an entrepreneurial/ opportunistic mindset Make effective use of valuable competencies Top corporate performers © 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Offer new and innovative products and services 1–8 Technology and Technological Changes Increasing rate of technology diffusion and the emergence of disruptive technologies Technology trends impacting the global competitive environment The information age: Internet and the global proliferation of low-cost computing power Increasing knowledge intensity as an intangible source of competitive advantage © 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 1–9 Strategic Flexibility • Strategic Flexibility: – Involves coping with the uncertainty and risks of hypercompetitive environments. – Must first overcome built-up organizational inertia. – Requires developing the capacity for continuous learning and applying the new and updated skills sets and competencies to the firm’s competitive advantage. © 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 1–10 Strategic Choices Diversification Product differentiation Barriers to market entry Economies of scale Industry concentration The firm’s strategic choices © 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Market frictions 1–11 The Industry Organization (I/O) Model of Above-Average Returns © 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 1–12 I/O Model Assumptions • The external environment imposes pressures and constraints that determine strategic choices. • Similarity in strategically relevant resources causes competitors to pursue similar strategies. • Resource differences among competitors are short-lived due to resource mobility across firms. • Strategic decision makers are rational and engage in profit-maximizing behaviors. © 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 1–13 Five Forces Model of Competition Substitutes Suppliers Industry rivalry Buyers Potential entrants © 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 1–14 Five Forces Model Assumptions • Industry profitability (i.e., rate of return on invested capital relative to cost of capital) is a function of interactions among the five forces. • Industry attractiveness equates to its profitability potential for earning above-average returns by: – producing standardized goods or services at costs below competitor costs (a cost leadership strategy). – producing differentiated goods or services for which customers are willing to pay a price premium (a differentiation strategy). © 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 1–15 The Resource-Based Model of Above-Average Returns Capability Resources An integrated set of resources Core competence A source of competitive advantage Physical, human, and organizational capital (tangible and intangible) © 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 1–16 Resource-Based Model Assumptions 1. Firms acquire different resources. 2. Firms develop unique capabilities based on how they combine and use resources. 3. Resources and certain capabilities are not highly mobile across firms. 4. Differences in resources and capabilities are the bases of competitive advantage and a firm’s performance rather than its industry’s structural characteristics. © 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 1–17 Resources As Core Competencies Costly to imitate Rare How resources become core competencies Valuable Nonsubstitutable © 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 1–18 The Resource-Based Model of Above-Average Returns © 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 1–19 Strategic Decision Making Industry organization (I/O) model Resource-based model Competitive strategy decision © 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 1–20 Vision Statement • A Successful Vision: – is an enduring word picture of what the firm wants to be and expects to achieve in the future. – stretches and challenges its people. – reflects the firm’s values and aspirations. – is most effective when its development includes all stakeholders. – recognizes the firm’s internal and external competitive environments. – is supported by upper management decisions and actions. © 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 1–21 Mission Statement • An Effective Mission: – specifies the present business or businesses in which the firm intends to compete and customers it intends to serve. – has a more concrete, near-term focus on current product markets and customers than the firm’s vision. – should be inspiring and relevant to all stakeholders. © 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 1–22 Stakeholders Can affect development of the firm’s vision and mission Primary stakeholders (individuals, groups and organizations) Are affected by the strategic outcomes achieved by the firm Can have enforceable claims on the firm’s performance Are influential when in control of critical or valued resources © 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 1–23 Classification of Stakeholders Categories of stakeholders Capital market stakeholders Product market stakeholders © 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Organizational stakeholders 1–24 The Three Stakeholder Groups © 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 1–25 Capital Market Stakeholders Preservation of investment Influence Conflicting expectations of shareholders and lenders Risk/return Enhanced wealth © 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 1–26 Product Market Stakeholders Types of product market stakeholders Suppliers Customers Host communities © 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Unions 1–27 Organizational Stakeholders Responsibilities of strategic leaders for development and effective use of the firm’s human capital Education and skills of employees Organizational culture and ethical work environment Strategic goals and global standards © 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. International assignments 1–28 The Work of Effective Strategic Leaders • Strategic Leaders: – have a strong strategic orientation that relies on thorough analysis when taking action. – are located at various levels throughout the firm. – want the firm and its people to accomplish more. – are innovative thinkers who promote innovation. – can leverage relationships with external parties while simultaneously promoting exploratory learning. – have an ambicultural (global mindset) approach to management. © 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 1–29 The Strategic Management Process: The ASP Process • Analyses • Strategies (cont’d) – C2: The external environment – C7: Diversified portfolio management – C3: The internal organization – C8: International strategies • Strategies – C4: Business-level strategies – C9: Cooperative strategies – C5: Marketplace competition • Performance – C6: Corporate-level strategies – C10: Governance mechanisms – C11: Organizational structure – C12: Strategic leadership – C13: Strategic entrepreneurship © 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 1–30 Chapter 2 The External Environment: Opportunities, Threats, Industry Competition and Competitor Analysis © 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 1–1 Learning Objectives Studying this chapter should provide you with the strategic management knowledge needed to: 1. Explain the importance of analyzing and understanding the firm’s external environment. 2. Define and describe the general environment and the industry environment. 3. Discuss the four activities of the external environmental analysis process. 4. Name and describe the general environment’s seven segments. 5. Identify the five competitive forces and explain how they determine an industry’s profitability potential. 6. Define strategic groups and describe their influence on firms. 7. Describe what firms need to know about their competitors and different methods (including ethical standards) used to collect intelligence about them. © 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 1–2 The External Environment © 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 2–3 General Environment • Dimensions in the broader society that influence an industry and the firms within it: – demographic – economic – political/legal – sociocultural – technological – global – physical © 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 2–4 The General Environment: Segments and Elements © 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 2–5 Industry Environment • The set of factors directly influencing a firm and its competitive actions and competitive responses: – threat of new entrants – power of suppliers – power of buyers – threat of product substitutes – intensity of rivalry among competitors © 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 2–6 Competitor Analysis • Gathering and interpreting information about all of the companies that the firm competes against. • Understanding the firm’s competitor environment complements the insights provided by studying the general and industry environments. © 2017 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 2–7 External Environmental Analysis • General Environment – Focused on the future • Industry Environment – Focused on factors and conditions influencing a firm’s profitability within an industry • Competit ... Purchase answer to see full attachment