LECTURE 2 - ELEMENTS OF STRATEGIC MANAGEMENT


COMPETITIVE ADVANTAGE :
Competitive advantage is defined as anything that a firm does exceptionally well compared to its rivals. A company's competitive advantage may be its superior customer service, innovative products, strong distribution channels and low pricing.

For example :-
  • Strong research and innovation = Apple
  • Brand popularity = Coca-Cola
  • Superior products/strong customer support = IKEA
  • Low pricing = Air Asia
  • Speed and time = Domino's Pizza, FedEx


 RESOURCE-BASED VIEW :
Resource-based view (RBV) states that a firm's internal resources such as skill, financial resources, human resources and sustaining a company's competitive advantage.


 INDUSTRIAL/ORGANIZATIONAL 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 or finance. In other word, I/O view is the external factors.

A RESOURCES WOULD BE CONSIDERED AS UNIQUE  WHEN IT IS :
 V - R - I - O 
  • V - valuable
  • R - rare
  •  I - hard to imitate  and substitute 
  • O - organized to exploit

VISION :
A vision statement is a statement about what an organization wants to become.


 MISSION :
A mission statement is the purpose or reason for the organization's existence.


 OBJECTIVE :
An objective is a desired or specific result of a planned activity that should be achieved by a specific time.
An objective should be specific, measurable, attainable or achievable, realistic and time phased ( S  M  A  R  T )


 STRATEGY :
A strategy is concerned with integrating company activities and allocating resources, so that the present objective can be met. 



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