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250 word essay on how strategic management is used to develop organization goals and visions? Please follow APA guidelines for citations, quotations, and references, and use at least two scholarly resources that are dated within the last five years.  You are strongly encouraged to use peer-reviewed journal articles.Competitive Advantage vs Sustainable Competitive Advantage         posted by Anna Mar, May 25, 2013 Competitive advantage is something you do better than any of your competitors.  Its the boxer who is unbeatable. Its the company that releases an innovative, industry changing product.  Competitive advantage is illusive. Its difficult to establish. When you do establish a competitive advantage — its often fleeting.  Sustainable competitive advantage is another animal. Its an advantage that keeps going for many years or decades. Ideally, forever.  Definition: Sustainable Competitive Advantage  A sustainable competitive advantage is something that an organization or individual does better than all competition over a long period of time.  The following criteria can be used to differentiate competitive advantages. They separate the temporary advantages from true sustainable competitive advantage.  1. Tactics vs Strategy All men can see these tactics whereby I conquer, but what none can see is the strategy out of which victory is evolved.  ~ Sun Tzu  Tactics may represent a brief competitive advantage. Strategy may represent a sustained competitive advantage.  Tactics are highly visible to your competition. They are easily emulated.  Its possible to keep a strategy secret from your competition. In such cases, the strategy is difficult to copy.  2. Explicit Knowledge vs. Tacit Knowledge Explicit knowledge brings competitive advantage. Tacit knowledge brings sustainable competitive advantage.  Explicit knowledge is regular knowledge that can be shared with words and visual communication techniques. Good ideas travel quickly and are difficult to keep secret. They seldom represent a sustained competitive advantage.  Tacit knowledge is knowledge thats difficult to transfer from one person to another. You can watch a golf champion play, get him to coach you for hours on end — you still wont match his skill.  Tacit knowledge includes abilities such as design sense, intuition, emotional intelligence, leadership abilities and decision making skills. If your people have superior tacit knowledge — its very difficult for your competition to catch up.  3. Resistance Culture vs. Innovation Culture Sustained competitive advantage is often based on the habits, symbols, norms, beliefs, mission and behavior of an organization. An innovative culture that embraces change and is supportive of creativity may sustain a competitive advantage indefinitely.  A culture thats resistant to change, highly political or disengaged is unlikely to hold on to its competitive advantages.  4. Capital vs. Superior Capital Superior capital may represent a highly stable and sustainable competitive advantage. If you own all the railways in a country — its unlikely anyone is ever going to compete with you.  If you own the shop closest to the beach, youll enjoy a sustained competitive advantage in the local beach balls market.Definition of Perfect Competition Perfect competition is a market structure that leads to the Pareto-efficient allocation of economic resources. LEARNING OBJECTIVES Describe degrees of competition in different market structures KEY TAKEAWAYS Key Points · The major types of market structure include monopoly, monopolistic competition, oligopoly, and perfect competition. · Perfect competition is an industry structure in which there are many firms producing homogeneous products. None of the firms are large enough to influence the industry. · The characteristics of a perfectly competitive market include insignificant contributions from the producers, homogenous products, perfect information about products, no transaction costs, and no long-term economic profits. · In practice, very few industries can be described as perfectly competitive, though agriculture comes close. Key Terms · monopoly: A situation, by legal privilege or other agreement, in which solely one party (company, cartel etc. ) exclusively provides a particular product or service, dominating that market and generally exerting powerful control over it. · Monopolistic competition: A market structure in which there is a large number of firms, each having a small proportion of the market share and slightly differentiated products. · oligopoly: An economic condition in which a small number of sellers exert control over the market of a commodity. Market structure is determined by the number and size distribution of firms in a market, entry conditions, and the extent of product differentiation. The major types of market structure include the following: · Monopoly: An industry structure where a single firm produces a product for which there are no close substitutes. Monopolists are price makers. Barriers to entry and exit exist, and, in order to ensure profits, a monopoly will attempt to maintain them. · Monopolistic competition: A market structure in which there is a large number of firms, each having a small portion of the market share and slightly differentiated products. There are close substitutes for the product of any given firm, so competitors have slight control over price. There are relatively insignificant barriers to entry or exit, and success invites new competitors into the industry. · Oligopoly: An industry structure in which there are a few firms producing products that range from slightly differentiated to highly differentiated. Each firm is large enough to influence the industry. Barriers to entry exist. · Perfect competition: An industry structure in which there are many firms, none large enough to influence the industry, producing homogeneous products. Firms are price takers. There are no barriers to entry. Agriculture comes close to being perfectly competitive. Perfect competition leads to the Pareto-efficient allocation of economic resources. Because of this it serves as a natural benchmark against which to contrast other market structures. However, in practice, veStrategic Management: Formulation and ImplementationStrategic Management: Formulation and Implementation Strategic Management > STRATEGY FORMULATION > The Concept Of Strategy Tests Of A Winning StrategyTests Of A Winning Strategy Three tests can be used to evaluate the merits of one strategy over another and to gauge how good a strategy is: The Goodness of Fit Test A good strategy is well matched to the companys situation - both internal and external factors and its own capabilities and aspirations. The Competitive Advantage Test A good strategy leads to sustainable competitive advantage. The bigger the competitive edge that a strategy helps build, the more powerful and effective it is. The Performance Test A good strategy boosts company performance. Two kinds of performance improvements are the most telling: gains in profitability and gains in the companys long-term business strength and competitive position. The Concept Of Strategy - SummaryThe Concept Of Strategy - Summary This chapter contains a discussion of the key concept in strategic decision making: strategy. Strategy refers to the managerial action plan for achieving organizational objectives. In effect, strategy is a management tool for achieving strategic targets. It is the mechanism used to align firms with their environments. Therefore, in order to survive and prosper firms must answer the many important questions. Some of these are: What is our business? What should it be? What products should we produce, and at what level of quality? Who are our customers, and what types of customers do we want to serve?. When the questions are answered, a strategy is formulated. Strategies exist at least at three levels: the corporate level, the business unit level, and the functional level. A corporate strategy is needed to achieve corporate-level objectives; business strategies to achieve the business-unit performance objectives; functional strategies are needed to achieve the performance targets set for each functional department. The idea of strategic fit assumes that these three levels of strategy are consistent. Moreover, lower-level strategy supports and complements higher-level strategy and contributes to the achievement of organization objectives. As with other important pursuit, the strategic management process requires competent individuals to ensure its success. Different strategic issues are addressed at each level of managerial strategy-making. Responsibility for strategy normally rest with a small number of strategic managers within the organization. Strategic managers are responsible for the overall performance of the organization. Functional managers, on the other hand, bear responsibility for specific business functions within the organization. In its final form, a strategic decision is molded from the stream of inputs, decisions, and actions of many people, including the board of directors, president, and various line and staff managers. In formulating a straStrategic Management: Formulation and ImplementationStrategic Management: Formulation and Implementation Strategic Management > STRATEGY FORMULATION > Establishing Organizational Direction: Mission And Objectives Strategic Goals And ObjectivesStrategic Goals And Objectives To fulfil the promises of the mission statement, strategic objectives must be identified. Without objectives, the organization is assured of eventual failure. In management literature, the terms goals, and objectives are often used synonymously. Still others claim that these two terms mean different things. In this case, organizations goals represent the desired general ends toward which efforts are directed (Wright, Pringle, Kroll ) Three economic goals guide the strategic direction of almost every viable organization: survival, growth, and profitability. Objectives are specific, and often quantified, version of goals. Therefore, objectives should be specific, measurable, time phased, and achievable. In this thesis the terms goals and objectives are used interchangeably. However, where other works are being referred to and those authors have used the term goal as opposed to objective, their terminology is retained. Quick navigationQuick navigation Mission Formulation Objectives: What Should They Be; What Are They? Table of contentsTable of contents Establishing Organizational Direction: Mission And Objectives Organizational Mission Organizational Purpose What Is Mission? Building A Definition Of Mission Mission And Vision The Vision Framework Strategic Intent Mission Formulation Strategic Goals And ObjectivesStrategic Goals And Objectives Objectives: What Should They Be; What Are They? Market Models Stakeholder Theory Cyert And Marchs Behavioural Theory Other Theories Of The Firm Profit As An Objective The Influence Of Shareholders Developing Appropriate Organizational Objectives Objectives Of An Organization And Can Be Structured Into A Hierarchy. Changing Mission And Objectives Mission And Objectives - Summary 24xls.com 2018 https://www.24xls.com/ http://www.strategy-formulation.24xls.com/ https://www.strategy-formulation.24xls.com/en201 https://www.strategy-formulation.24xls.com/en209 https://www.strategy-formulation.24xls.com/en211 https://www.strategy-formulation.24xls.com/en201 https://www.strategy-formulation.24xls.com/en202 https://www.strategy-formulation.24xls.com/en203 https://www.strategy-formulation.24xls.com/en204 https://www.strategy-formulation.24xls.com/en205 https://www.strategy-formulation.24xls.com/en206 https://www.strategy-formulation.24xls.com/en207 https://www.strategy-formulation.24xls.com/en208 https://www.strategy-formulation.24xls.com/en209 https://www.strategy-formulation.24xls.com/en210 https://www.strategy-formulation.24xls.com/en211 https://www.strategy-formulation.24xls.com/en212 https://www.strategy-formulation.24xls.com/en213 https://www.strategy-formulation.24xls.com/en2Internal Consultants The capacity to manage change has thus become a key strategic capability—and an important component of this capacity is internal expert support. The dynamic capability to change and redefine the business underlies the ability to respond to new opportunities and/or to fulfill existing needs both nimbly and accurately to the fullest satisfaction of key stakeholders. Similarly, it has long been suggested that embracing organization development (OD) based principles that promote and sustain the change (Kolb, 1970; Worley & Lawler, 2006) can help organizations develop the ability to create timely innovations and adaptations without creating “toxic” consequences for people, processes, and the institution’s culture (Barnett & Shore, 2009). Although internal consultants (ICs) have been described as the “poor cousin” of their external counterparts (Sturdy & Wiley, 2011), research suggests that a potentially more powerful intervention is to combine the insights of ECs with the experience base of ICs to overcome change- related resistance and build commitment to the change (Lambert, 1998; Savall & Zardet, 2009). Within this context, an IC’s effectiveness is shaped by a number of factors including the ability to analyze and understand the environment, influence key organizational players, facilitate learning, serve as a mentor and role model for organizational members, and select an appropriate change approach with the intent of maximizing the probability of success for the initiative and its stakeholders. Along similar lines, Meyer and Stensaker (2006) define change capacity as the key to maintaining daily operations while adopting change on a continual basis. They postulate that developing change capacity is the key for sustaining long-term organizational performance in a global business environment, especially one that is increasingly unstable and often unpredictable, requiring agility and flexibility on the part of organizations and their members. Their role within the organization has the potential to enhance operational effectiveness and efficiency, guide strategic analyses and assessments, and conceptualize and support OD- related interventions. Internal consultants often play the role of trouble-shooter of minor and major problems that an organization faces, in essence serving as an expert operational resource. Through their roles as coach and mentor, ICs have the potential to impact the knowledge, ability, and motivation of an organization’s people, helping develop the part of its infrastructure focused on training, education, and development. McLagan (2002) suggests the use of a directed approach in a situation where a clear solution is found to resolve the issue/problem and the probability of achieving the predicted outcome is very high. Planned change is typically used when the change initiative covers many facets and/or is broad and deep in scope, requiring a considerable amount of planning to obtain and Wells Fargo Vision Statement: Wells Fargo’s vision is to satisfy our customers’ financial needs and help them succeed financially. While Wells Fargo’s (WF) vision statement is clear and succinct, it lacks clarification on what it is attempting to achieve in the future and how they will accomplish it. The goal of the vision statement should be to quantify “how” and to what extent. The lack of a gerund verb for example “improving, leading, or to be” can be seen as a shortcoming as a vision statement has the sole purpose of identifying where the company wants to go to after accomplishing its mission. It should in fact be inspirational not only to the consumer but also the employees of the organization and indicate what the ultimate goal is. WF’s vision statement also lacks flare which would incite interest, curiosity, and possibly recruitment. An effective component of the statement is that it makes it absolutely clear that the focus of the organization is in fact the consumer and their financial betterment. Three strategic objectives that Wells Fargo could utilize to improve their profitability: · Decrease customer services response times to less than ten-minute wait making it interactions less time consuming by close of 2021. · Develop a friendlier website that is responsive to all types of devices and platforms · Improve communication with consumers to inform them of the financial resources we can provide. · Increase our presence on all social media platforms using more diverse marketing and advertising strategies. · Improve relations with the minority communities by providing fair and unbiased loans to those that qualify regardless of race.Strategic Planning Demystifying Strategy: The What, Who, How, and Why by Michael D. Watkins September 10, 2007 Many leaders I work with struggle with strategy. They know it’s important to have strategies in order to align decision making in their businesses. They understand that they can’t observe and control everything in their organizations (much as many of them would like to). They earnestly want to develop good strategies and they get the theory. But when it comes down to the nitty-gritty of crafting strategy, they rapidly get bogged down. This is unfortunate, but it’s not that surprising. It’s a direct consequence of confusion about what a “business strategy” is… and is not. Here’s my definition: A business strategy is a set of guiding principles that, when communicated and adopted in the organization, generates a desired pattern of decision making. A strategy is therefore about how people throughout the organization should make decisions and allocate resources in order accomplish key objectives. A good strategy provides a clear roadmap, consisting of a set of guiding principles or rules, that defines the actions people in the business should take (and not take) and the things they should prioritize (and not prioritize) to achieve desired goals. As such, a strategy is just one element of the overall strategic direction that leaders must define for their organizations. A strategy is not a mission, which is what the organization’s leaders want it to accomplish; missions get elaborated into specific goals and performance metrics. A strategy also is not the value network — the web of relationships with suppliers, customers, employees, and investors within which the business co-creates and captures economic value. Finally, a strategy is not a vision, which is an inspiring portrait of what it will look and feel like to pursue and achieve the organization’s mission and goals. Visioning is part (along with incentives) of what leaders do to motivate people in the organization to engage in above average effort. In a nutshell, as illustrated below, mission is about what will be achieved; the value network is about with whom value will be created and captured; strategy is about how resources should be allocated to accomplish the mission in the context of the value network; and vision and incentives is about why people in the organization should feel motivated to perform at a high level. Together, the mission, network, strategy, and vision define the strategic direction for a business. They provide the what, who, how, and why necessary to powerfully align action in complex organizations. One straightforward implication is that you can’t develop a strategy for your business without first thinking through mission and goals. Likewise, you can’t develop a coherent strategy in isolation from decisions concerning the network of partners with whom the business will co-create and capture value. By focusing on all foDownload Print Week 1 Required and Supplementary Materials Task: View this topic Last Visited Jan 17, 2021 1:48 PM Previous Section Next Section Table of Contents 1.1 Defining Strategic Management and Strategy L E A R N I N G O B J E C T I V E S 1. Learn what strategic management is. 2. Understand the key question addressed by strategic management. 3. Understand why it is valuable to consider different definitions of strategy. 4. Learn what is meant by each of the 5 Ps of strategy. What Is Strategic Management? Issues such as those currently faced by Apple are the focus of strategic management because they help answer the key question examined by strategic management—“Why do some firms outperform other firms?” More specifically, strategic management examines how actions and events involving top executives (such as Steve Jobs), firms (Apple), and industries (the tablet market) influence a firm’s success or failure. Formal tools exist for understanding these relationships, and many of these tools are explained and applied in this book. But formal tools are not enough; creativity is just as important to strategic management. Mastering strategy is therefore part art and part science. MGMT 670 9041 Strategic Managem… Te Aqua Bailey Course Home Content Discussions Assignments ClasslistMy Tools Resources Help Table of Contents WEEKLY COURSE CONTENT Week 1: Strategy (Discussion Ques!on 5\%) Week 1 Required and Supplementary Materials Ac!vity Details https://learn.umgc.edu/d2l/le/content/545108/navigateContent/149/Previous?pId=20462174 https://learn.umgc.edu/d2l/le/content/545108/navigateContent/149/Next?pId=20462174 https://learn.umgc.edu/d2l/le/content/545108/navigateContent/149/Previous?pId=20462174 https://learn.umgc.edu/d2l/le/content/545108/navigateContent/149/Next?pId=20462174 https://learn.umgc.edu/d2l/home/545108 https://learn.umgc.edu/d2l/lms/classlist/classlist.d2l?ou=545108 javascript:void(0); https://learn.umgc.edu/d2l/le/content/545108/Home?itemIdentifier=D2L.LE.Content.ContentObject.ModuleCO-20462165 https://learn.umgc.edu/d2l/le/content/545108/Home?itemIdentifier=D2L.LE.Content.ContentObject.ModuleCO-20462174Download Print Week 1 Required and Supplementary Materials Task: View this topic Last Visited Jan 17, 2021 1:58 PM A - Z Popular Business Design Simplicable A-Z Business Management IT Simplicable Guide business » competitive advantage » sustainable competitive advantage examples 7 Examples of Sustainable Competitive Advantage posted by Anna Mar, April 04, 2013 Competitive advantage decays. As painful and challenging as it can be for a business to build a advantage — that advantage is often fleeting. External change such as competition, markets, business models, environment, customer preferences and technology deprecate your competitive advantage MGMT 670 9041 Strategic… Course Home Content Discussions Assignments My Tools More Ac!vity Details https://learn.umgc.edu/d2l/le/content/545108/navigateContent/149/Previous?pId=20462174 https://learn.umgc.edu/d2l/le/content/545108/navigateContent/149/Next?pId=20462174 https://learn.umgc.edu/d2l/le/content/545108/navigateContent/149/Previous?pId=20462174 https://learn.umgc.edu/d2l/le/content/545108/navigateContent/149/Next?pId=20462174 https://learn.umgc.edu/d2l/home/545108Previous Section Next Section Previous Section Next Section Table of Contents Table of Contents 1.4 Understanding the Strategic Management Process L E A R N I N G O B J E C T I V E S 1. Learn the strategic management process. 2. Understand the four steps in the strategic management process. Modeling the Strategy Process Strategic management is a process that involves building a careful understanding of how the world is changing, as well as a knowledge of how those changes might affect a particular firm. CEOs, such as late Apple-founder Steve Jobs, must be able to carefully manage the possible actions that their firms might take to deal with changes that occur in their environment. We present a model of the strategic management process in Figure 1.7 Overall Model of the Strategic Management Process. This model also guides our presentation of the chapters contained in this book. Figure 1.7 Overall Model of the Strategic Management Process The strategic management process begins with an understanding of strategy and performance. As we have noted in this introductory chapter, strategic management is both an art and a science, and it involves multiple conceptualizations of the notion of strategy drawn from recent and ancient history. In Chapter 2 Leading Strategically, we focus on how leading strategically is needed if the firm is to achieve the long-term strong performance companies such as Apple have attained. Consequently, how managers understand and interpret the performance of their firms is often central to understanding strategy. Environmental and internal scanning is the next stage in the process. Managers must constantly scan the external environment for trends and events that affect the overall economy, and they must monitor changes in the particular industry in which the firm operates. For example, Apple’s decision to create the iPhone demonstrates its ability to interpret that traditional industry boundaries that distinguished the cellular phone industry and the computer industry were beginning to blur. At the same time, firms must evaluate their own resources to understand how they might react to changes in the environment. For example, intellectual property is a vital resource for Apple. Between 2008 and 2010, Apple filed more than 350 cases with the US Patent and Trademark Office to protect its use of such terms as apple, pod, and safari.Apple Inc. litigation. Wikipedia. Retrieved from en.wikipedia.org/wiki/Apple_Inc._ litigation A classic management tool that incorporates the idea of scanning elements both external and internal to the firm is SWOT (strengths, weaknesses, opportunities, and threats) analysis. Strengths and weaknesses are assessed by examining the firm’s resources, while opportunities and threats refer to external events and trends. The value of SWOT analysis parallels ideas from classic military strategists such as Sun Tzu, who noted the value of knowing yourself as well aA RT I C L E S O U R C E S !#$\%&$\%($)&\%*&$+\%&,\%-./$0& Merrill Edge Get up to $600 when you invest in a new Merrill Edge Self-Directed account L E A R N M O R E Smart Asset Get matched with fiduciary financial advisors in your area in 5 minutes or less L E A R N M O R E M1 Finance Invest, borrow, and spend, with full automation. Get started for free. 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Define vision and mission and distinguish between them. 2. Know what the acronym SMART represents. 3. Be able to write a SMART goal. The Importance of Vision Good business leaders create a vision, articulate the vision, passionately own the vision, and relentlessly drive it to completion. - Jack Welch, former CEO of General Electric Many skills and abilities separate effective strategic leaders like Howard Schultz from poor strategic leaders. One of them is the ability to inspire employees to work hard to improve their organization’s performance. Effective strategic leaders are able to convince employees to embrace lofty ambitions and move the organization forward. In contrast, poor strategic leaders struggle to rally their people and channel their collective energy in a positive direction. As the quote from Jack Welch suggests, a vision is one key tool available to executives to inspire the people in an organization (Figure 2.1 The Big Picture: Organizational Vision). An organization’s vision describes what the organization hopes to become in the future. Well-constructed visions clearly articulate an organization’s aspirations. Avon’s vision is “to be the company that best understands and satisfies the product, service, and self-fulfillment needs of women—globally.” This brief but powerful statement emphasizes several aims that are important to Avon, including excellence in customer service, empowering women, and the intent to be a worldwide player. Like all good visions, Avon sets a high standard for employees to work collectively toward. Perhaps no vision captures high standards better than that of aluminum maker Alcoa. This firm’s very ambitious vision is “to be the best company in the world—in the eyes of our customers, shareholders, communities and people.” By making clear their aspirations, Alcoa’s executives hope to inspire employees to act in ways that help the firm become the best in the world. The results of a survey of one thousand five hundred executives illustrate how the need to create an inspiring vision creates a tremendous challenge for executives. When asked to identify the most important characteristics of effective strategic leaders, 98 percent of the executives listed “a strong sense of vision” first. Meanwhile, 90 percent of the executives expressed serious doubts about their own ability to create a vision.Quigley, J. V. 1994. Vision: How leaders develop it, share it, and sustain it. Business Horizons, 37(5), 37–41. Not surprisingly, many organizations do not have formal visions. Many organizations that do have visions find that employees do not embrace and pursue the visions. Having a well-formulated vision employees embrace can therefore give an organization an edge over its rivals. Mission Statements In workingMGMT 670: Week 1 Lecture Week 1: Strategy, business models, competitive advantage, vision, mission, objectives. Students will learn that business strategy is the business’s long term goals. They will learn how to create the mission and vision statements and objectives to achieve the strategic vision of the company. They will learn how to identify the business model used by a business. Learning Objectives: 1. Discuss business strategy and the strategic management process. 2. Differentiate between the vision and mission statements and how to create them. 3. Identify a company’s objectives and discuss how they contribute to a company’s strategy. 4. Learn the three tests of a winning strategy. 5. Identify the model used by a business. What is Strategy? According to Watkins (2007), business strategy is “a set of guiding principles that, when communicated and adopted in the organization, generates a desired pattern of decision making. A strategy is therefore about how people throughout the organization should make decisions and allocate resources in order accomplish key objectives.” BusinessDictionary.com (n.d.) defines strategic management as “The systematic analysis of the factors associated with customers and competitors (the external environment) and the organization itself (the internal environment) to provide the basis for maintaining optimum management practices. The objective of strategic management is to achieve better alignment of corporate policies and strategic priorities.” These two definitions give insight into the topics we’ll be studying this semester. Identifying Your Organization-Wide Strategies Strategic Planning Why do some companies outperform others? They create and execute an effective strategic plan. A strategic plan “is a carefully crafted set of steps that a firm intends to follow to be successful” (“Defining strategic management and strategy,” 2012). The goal of every company is to gain competitive advantage: “the strategic advantage one business entity has over its rival entities within its competitive industry. ... Competitive advantage occurs when an organization acquires or develops an attribute or combination of attributes that allows it to outperform its competitors” (“Competitive advantage,” 2016). Such attributes can include natural resources, skilled personnel, and new technologies (“Sustainable competitive advantage,” 2016). The strategic plan is just one element of the direction leaders define for their organization. An effective strategic plan follows from a vision statement, a mission statement, and clear objectives (goals) for achieving its mission and vision. The strategy plan is how the business accomplishes those objectives. Vision The vision statement is usually created first. “An organization’s vision describes what the organization hopes to become in the future. Well-constructed visions clearly articulate an organization’s aspirations” (“Vision, mission, and goals,” 2012). Although most business English Section 14. SWOT Analysis: Strengths, Weaknesses,Section 14. SWOT Analysis: Strengths, Weaknesses, Opportunities, and ThreatsOpportunities, and Threats Main Section Checklist Examples Tools PowerPoint T O O L : P E R F O R M I N G A S W O T A N A L Y S I S Here are some general questions in each SWOT category to prompt analysis of your organization, community, or effort. PositivesPositives NegativesNegatives InternalInternal Human resources Physical resources Financial resources Activities and processes Past experiences StrengthsStrengths What are your own advantages, in terms of people, physical resources, finances? What do you do well? What activities or processes have met with success? WeaknessesWeaknesses What could be improved in your organization in terms of staffing, physical resources, funding? What activities and processes lack effectiveness or are poorly done? ExternalExternal Future trends - in your field or the culture The economy Funding sources (foundations, donors, legislatures) Demographics The physical environment Legislation Local, national, or international events OpportunitiesOpportunities What possibilities exist to support or help your effort - in the environment, the people you serve, or the people who conduct your work? What local, national, or international trends draw interest to your program? Is a social change or demographic pattern favorable to your goal? Is a new funding source available? Have changes in policies made something easier? Do changes in technology hold new promise? ThreatsThreats What obstacles do you face that hinder the effort - in the environment, the people you serve, or the people who conduct your work? What local, national, or international trends favor interest in other or competing programs? Is a social change or demographic pattern harmful to your goal? Is the financial situation of a funder changing? Have changes in policies made something more difficult? Is changing technology threatening your effectiveness? Download a Microsoft Word version of this table here. Contributor Contributor Val Renault Find us on: Home About Guestbook Ask an Advisor Build Your Toolbox Sponsors Donate Use Policy Contact Us The Community Tool Box is a service of the Center for Community Health and Development at the University of Kansas. Licensed under a Creative Commons Attribution-Noncommercial-Share Alike 3.0 United States License. © 1994-2020 The University of Kansas. All Rights Reserved. Navigation Chapter Sections https://ctb.ku.edu/ https://ctb.ku.edu/en/table-of-contents/assessment/assessing-community-needs-and-resources/swot-analysis/main https://ctb.ku.edu/en/table-of-contents/assessment/assessing-community-needs-and-resources/swot-analysis/checklist https://ctb.ku.edu/en/table-of-contents/assessment/assessing-community-needs-and-resources/swot-analysis/example https://ctb.ku.edu/en/Accounting Data for Value Chain Analysis Author(s): Michael Hergert and Deigan Morris Source: Strategic Management Journal , Mar. - Apr., 1989, Vol. 10, No. 2 (Mar. - Apr., 1989), pp. 175-188 Published by: Wiley Stable URL: https://www.jstor.org/stable/2486509 REFERENCES Linked references are available on JSTOR for this article: https://www.jstor.org/stable/2486509?seq=1&cid=pdf- reference#references_tab_contents You may need to log in to JSTOR to access the linked references. JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact [email protected] Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at https://about.jstor.org/terms Wiley is collaborating with JSTOR to digitize, preserve and extend access to Strategic Management Journal This content downloaded from �������������54.84.104.155 on Sun, 31 Jan 2021 15:58:09 UTC������������� All use subject to https://about.jstor.org/terms https://www.jstor.org/stable/2486509 https://www.jstor.org/stable/2486509?seq=1&cid=pdf-reference#references_tab_contents https://www.jstor.org/stable/2486509?seq=1&cid=pdf-reference#references_tab_contents Strategic Management Journal, Vol. 10, 175-188 (1989) ACCOUNTING DATA FOR VALUE CHAIN ANALYSIS MICHAEL HERGERT College of Business Administration, San Diego State University, San Diego, Cali- fornia, U.S.A. DEIGAN MORRIS INSEAD, Fontainebleau, France Strategic planning frameworks provide a means of combining internal data about the firms capabilities with external information about the competitive environment in a manner designed to guide resource allocation. The value chain approach to strategic planning, as described by Michael Porter in his book Competitive Advantage (1985), is a recent addition to this family of planning frameworks. In this article, we address some of the difficulties in using accounting data for value chaini analysis. These difficulties are divided into those that are inherent, because of differences in methods of data accumulation, and those that are avoidable. INTRODUCTION All corporations make decisions that affect their long run competitive position and profitability. Some, perhaps many, of these decisions turn out to be mistaken. Strategic planning is an attempt to formalize the process of making these important decisions and so reduce the incidence of costly mistakes. The purpose is to help the firm position itself against its competitors in the pursuit of competitive advantage. A variety of conceptual frameworks have been proposed for guiding this process. They combine information about the environment with information about the internal workIntroduction This week, we’ll be looking at a company’s internal resources to see how well its current strategy is working. When deciding whether a strategy is working, we look at whether the company is recording gains in financial strength and profitability, and whether the company’s competitive strength and market standing are improving. Indicators of how well a company’s strategy is working include · Trends in the company’s sales and earnings growth and stock price · The company’s overall financial strength · The company’s customer retention rate and the rate at which new customers are acquired · Changes in the company’s image and reputation with customers · Improvement in internal processes Resource and Capability Analysis The company’s business model and strategy must match its resources and capabilities. Therefore, any evaluation of the company’s internal factors must include resource and capability analysis. Such an analysis involves first identifying the available resources and capabilities (its core competencies) and then deciding whether they support a competitive advantage over rival firms (“Developing strategy through internal analysis,” 2010). A resource is “An economic or productive factor required to accomplish an activity, or as means to undertake an enterprise and achieve desired outcome” (“Resource,” 2016). A capability is the capacity of a firm to competently perform some internal activity. “A firms resources and capabilities include all of the financial, physical, human, and organizational assets used by a firm to develop, manufacture, and deliver products or services to its customers” (Barney, 1995, p. 50).  Tangible resources are assets that can be seen and quantified. Production equipment, manufacturing plants, and formal reporting structures are examples of tangible resources. Intangible resources typically include assets that are rooted deeply in the firm’s history and have accumulated over time. Because they are embedded in unique patterns of routines, intangible resources are relatively difficult for competitors to analyze and imitate. Knowledge, trust between managers and employees, ideas, the capacity for innovation, managerial capabilities, organizational routines (the unique ways people work together), scientific capabilities, and the firm’s reputation for its goods or services and how it interacts with people (such as employees, customers, and suppliers) are all examples of intangible resources. (“Developing strategy through internal analysis,” 2010) Resource-Based View The resource-based view (RBV) is a model that sees resources as key to superior firm performance. The RBV “of strategy holds company assets as the primary input for overall strategic planning, emphasizing the way in which competitive advantage can be derived via rare resource combinations” (“The resource-based view,” 2016). If a resource exhibits VRIO (valuable, rare, imitatable, organization) attributes, the resource enables the firm to gainLooking inside for competitive advantage.Home Read Sign in CONTENTS PRINCIPLES OF MANAGEMENT Search in book … 5.6 Developing Strategy Through Internal Analysis Learning Objectives 1. Learn about internal analysis. 2. Understand resources, capabilities, and core competencies. 3. See how to evaluate resources, capabilities, and core competencies using VRIO analysis. In this section, you will learn about some of the basic internal inputs for strategy formulation— starting with the organization’s strengths and weaknesses. We will focus on three aspects of internal analysis here, though you recognize that these should be complemented by external analysis as well. There is no correct order in which to do internal and external analyses, and the process is likely to be iterative. That is, you might do some internal analysis that suggests the need for other external analysis, or vice versa. For the internal environment, it is best to start with an assessment of resources and capabilities and then work your way into the identification of core competences using VRIO analysis. Internal Analysis By exploiting internal resources and capabilities and meeting the demanding standards of global competition, firms create value for customers (McEvily & Chakravarthy, 2002; Buckley & Carter, 2000). Value is measured by a product’s performance characteristics and by its attributes for which customers are willing to pay. Those particular bundles of resources and capabilities that provide unique advantages to the firm are considered core competencies (Prahalad & Hamel, 1990). Core competencies are resources and capabilities that serve as a source of a firm’s competitive advantage over rivals. Core competencies distinguish a company competitively and reflect its personality. Core competencies emerge over time through an organizational process of accumulating and learning how to deploy different resources and capabilities. As the capacity to take action, core competencies are “crown jewels of a company,” the activities the company performs especially well compared with competitors and through which the firm adds unique value to its goods or services over a long period of time (Hafeez, et. al., 2002; Prahalad & Hamel, 1990). Sometimes consistency and predictability provide value to customers, such as the type of value Walgreens drugstores provides. As a Fortune magazine writer noted, “Do you realize that from 1975 to today, Walgreens beat Intel? It beat Intel nearly two to one, GE almost five to one. It beat 3M, Coke, Boeing, Motorola (Useem, 2001).” Walgreens was able to do this by using its core competencies to offer value desired by its target customer group. Instead of responding to the trends of the day, “During the Internet scare of 1998 and 1999, when slogans of ‘Change or Die!’ were all but graffitied on the subway, Walgreens obstinately stuck to its corporate credo of ‘Crawl, walk, run.’ Its refusal to act until it thoroughly understood the implications of e- commerce was deeply unfashionablePrivacy Policy Strategic Management Search Porter’s competitive strategies: Porter’s three strategies can be defined along two dimensions: strategic scope and strategic strength. SWOT ANALYSIS Helpful to achieving the objective Strengths Weaknesses Opportunities Threats In te rn al o ri gi n (a ttr ib ut es o f t he o rg an iz at io n) E xt er na l o ri gi n (a ttr ib ut es o f t he e nv ir on m en t) Harmful to achieving the objective SWOT analysis: The SWOT analysis matrix illustrates where the company’s strengths and weaknesses lie relative to factors in the market. Strengths and opportunities (the S and O of SWOT) are both helpful toward achieving company objectives, but strengths originate internally while opportunities originate externally. Similarly, weaknesses and threats (the W and T of SWOT) are harmful toward achieving objectives, but weaknesses originate internally and threats originate externally. Assessing all four points of the SWOT acronym ensures a thorough evaluation. Previous Next Internal Analysis Inputs to Strategy The Mission Statement A mission statement defines the fundamental purpose of an organization or enterprise. LEARNING OBJECTIVES Outline the appropriate content necessary to construct a comprehensive mission statement KEY TAKEAWAYS Key Points A mission statement is generated to retain consistency in overall strategy and to communicate core organizational goals to all stakeholders. The business’s owners and upper managers develop the mission statement and uphold it as a standard across the organization. It provides a strategic framework by which the organization is expected to abide. In a best-case scenario, an organization conducts internal and external assessments relative to the mission statement to ensure it is being upheld. A mission statement informs the key market, contribution, and distinction of an organization. It describes what the organization does, why it does so, and how it excels. Key Terms mission: A set of tasks that fulfills a purpose or duty; an assignment set by an employer. stakeholder: A person or organization with a legitimate interest in a given situation, action, or enterprise. A mission statement defines the purpose of a company or organization. The mission statement guides the organization’s actions, spells out overall goals, and guides decision making. The mission statement is generated to retain consistency in overall strategy and to communicate core organizational goals to all stakeholders. The business’s owners and upper managers develop the mission statement and uphold it as a standard across the organization. It provides a strategic framework by which the organization is expected to abide. Mission statement: An example of a mission statement, which includes the organization’s aims and stakeholders and how it provides value to these stakeholders. In a best-case scenario, an organization conducts internal and external assessments relEssays, Term Papers & Research Papers SWOT analysis is a vital strategic planning tool that can be used by General Dynamics managers to do a situational analysis of the company . It is a useful technique to understand the present Strengths (S), Weakness (W), Opportunities (O) & Threats (T) General Dynamics is facing in its current business environment. The General Dynamics is one of the leading companies in its industry. General Dynamics maintains its prominent position in market by critically analyzing and reviewing the SWOT analysis. SWOT analysis a highly interactive process and requires e!ective coordination among various departments within the company such as – marketing, nance, operations, management information systems and strategic planning. The SWOT Analysis framework facilitates an organization to identify the internal strategic factors such as -strengths and weaknesses, & external strategic factors such as - opportunities and threats. It leads to a 2X2 matrix – also called SWOT Matrix. The Strengths-Weaknesses-Opportunities-Threats (SWOT) Analysis / Matrix helps the managers of the General Dynamics to develop four types of strategies: SO (strengths-opportunities) Strategies WO (weaknesses-opportunities) Strategies ST (strengths-threats) Strategies WT (weaknesses-threats) Strategies SWOT Matrix Strategies Objective The main purpose of SWOT matrix is to identify the strategies that a company can utilize to exploit external opportunities, counter threats, and build on & protect General Dynamics strengths, and eradicate its weaknesses. Step by Step Guide to General Dynamics SWOT Analysis Strengths of General Dynamics – Internal Strategic Factors As one of the leading companies in its industry, General Dynamics has numerous strengths that enable it to thrive in the market place. These strengths not only help it to protect the market share in existing markets but also help in penetrating new markets. Based on Fern Fort University extensive research – some of the strengths of General Dynamics are – Strong Free Cash Flow – General Dynamics has strong free cash #ows that provide resources in the hand of the company to expand into new projects. Reliable suppliers – It has a strong base of reliable supplier of raw material thus enabling the company to overcome any supply chain bottlenecks. Strong dealer community – It has built a culture among distributor & dealers where the dealers not only promote company’s products but also invest in training the sales team to explain to the customer how he/she can extract the maximum benets out of the products. Successful track record of developing new products – product innovation. Good Returns on Capital Expenditure – General Dynamics is relatively successful at execution of new projects and generated good returns on capital expenditure by building new revenue streams. High level of customer satisfaction – the company with its dedicated customer relationship management department has able tHome › Topics › RBV Popular topics New topics Join Our Newsletter E-mail Subscribe Like Us Resource Based ViewResource Based View Ovidijus JureviciusOvidijus Jurevicius | | October 14, 2013October 14, 2013 Print De0nition The resource-based view (RBV)The resource-based view (RBV) is a model that sees resources as key to superior Nrm performance. If a resource exhibits VRIO attributes, the resource enables the Nrm to gain and sustain competitive advantage. What is a resource based view? RBV is an approach to achieving competitive advantage that emerged in 1980s and 1990s, after the major works published by Wernerfelt, B. (“The Resource-Based View of the Firm”), Prahalad and Hamel (“The Core Competence of The Corporation”), Barney, J. (“Firm resources and sustained competitive advantage”) and others. The supporters of this view argue that organizations should look inside the company to Nnd the sources of competitive advantage instead of looking at competitive environment for it. The following model explains RBV and emphasizes the key points of it. According to RBV proponents, it is much more feasible to exploit external opportunities using existing resources in a new way rather than trying to acquire new skills for each different opportunity. In RBV model, resources are given the major role in helping companies to achieve higher organizational performance. There are two types of resources: tangible and intangible. Tangible assetsTangible assets are physical things. Land, buildings, machinery, equipment and capital – all these assets are tangible. Physical resources can easily be bought in the market so they confer little advantage to the companies in the long run because rivals can soon acquire the identical assets. Intangible assetsIntangible assets are everything else that has no physical presence but can still be owned by the company. Brand reputation, trademarks, intellectual property are all intangible assets. Unlike physical resources, brand reputation is built over a long time and is something that other companies cannot buy from the market. Intangible resources usually stay within a company and are the main source of sustainable competitive advantage. The two critical assumptions of RBV are that resources must also be heterogeneous and immobile. HeterogeneousHeterogeneous. The Nrst assumption is that skills, capabilities and other resources that organizations possess differ from one company to another. If organizations would have the same amount and mix of resources, they could not employ different strategies to outcompete each other. What one company would do, the other could simply follow and no competitive advantage could be achieved. This is the scenario of perfect competition, yet real world markets are far from perfectly competitive and some companies, which are exposed to the same external and competitive forces (same external conditions), are able to implement different strategies and outperform each other. TherefHOME ABOUT US CONTACT US TERMS PRIVACY POLICY CONTRIBUTE CONTENT COLLEGES MEDIA SEARCH Follow us on 2011-2021 | MBASkool.com BRANDGUIDE › INDUSTRIAL PRODUCTS › Custom SearchHome Courses Concepts SWOT Analysis Marketing Mix PESTLE Trends Articles Quizzes GD Topics Similar Analysis: Adidas SWOT Analysis BMW SWOT Analysis Samsung SWOT Analysis Nike SWOT Analysis Coca Cola SWOT Analysis More Brands Important Sectors: Automobiles Banking Food & Beverages FMCG Retail More Sectors SWOT analysis of General Dynamics analyses the brand/company with its strengths, weaknesses, opportunities & threats. In General Dynamics SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors. SWOT Analysis is a proven management framework which enables a brand like General Dynamics to benchmark its business & performance as compared to the competitors and industry. General Dynamics is one of the leading brands in the industrial products and chemicals sector. The table below lists the SWOT (Strengths, Weaknesses, Opportunities, Threats), top General Dynamics competitors and includes General Dynamics target market, segmentation, positioning & Unique Selling Proposition (USP). General Dynamics SWOT Analysis, Competitors, Segmentation, Target Market, Positioning, USP & Brand Analysis Table General Dynamics Brand Analysis Parent Company General Dynamics Corporation Category Aerospace and Defense Sector Industrial Products and Chemicals Tagline/ Slogan Strengths on your side USP Ability to grow organically with time General Dynamics STP General Dynamics Segmentation Marine Systems; Combat Systems; Information Systems and Technology; and Aerospace General Dynamics Target Market Military, other government and commercial customers General Dynamics Positioning Delivering superior products and services to military, other government and commercial customers General Dynamics SWOT Analysis General Dynamics Strengths Below are the Strengths in the SWOT Analysis of General Dynamics: 1. Strong relationship with the US government which helps it in getting major defense contracts 2. Broad product portfolio (Marine Systems; Combat Systems; Information Systems and Technology; and Aerospace) and balanced revenue streams sector 3. Has grown both organically and inorganically (acquisitions and mergers) with time 4. High focus on Research & Development which is critical in defense 5. Nearly 100,000 employees worldwide with strong revenues 6. General Dynamics entry into the Healthcare solutions will help it expand its top-line 7. One of the world’s largest defense contractors General Dynamics Weaknesses Here are the weaknesses in the General Dynamics SWOT Analysis: 1. US government contracts form the majority of its revenues 2. Highly competitive market means limited market share General Dynamics Opportunities Following are the Opportunities in General Dynamics SWOT Analysis: 1. Growing global m