STRATEGIC MANAGEMENT

Strategic Management



Strategic Management

Question) Within the context of strategic management, discuss how all the resources available to a business may contribute to creation and maintenance of competitive advantage?

Strategic management 5e is essential reading for all students of strategy at undergraduate, diploma and MBA level. Structured around a traditional analysis, formulation and implementation framework, based on a mini-case approach, and supported by unrivalled supplementary resources, John Thompson's accessible text encourages students to think about strategy through the successes and failures of real companies. In addition, the unrivalled subject coverage introduces readers to topics of contemporary interest including emergent strategy, entrepreneurship, and leadership.

Strategic planning is critical in the world of business today. Increasing competition, advancements in technology, changing markets and a global economy in recession has increased the pressure for companies to develop strategies that result in distinctive competitive advantages. The leadership and management of businesses hence face the challenge of building a futuristic perspective; pursuing novel ways to develop new products, expand existing businesses, and create the markets of tomorrow while sustaining profitability in the current times. (Thompson, 2001)

Thus, building a futuristic perspective requires the leadership capacity of 'looking outside' or 'looking to the horizon' which is fundamental to setting the direction of an organization and contrasts with the management priority of coordinating current activities. Futuristic thinking requires the leaders to stand back from the traditional operational & incremental thinking approaches and analyze broad global and national trends which are likely to impact the organization.

Modern strategic planning involves creating networks of relationships with employees, customers, suppliers, and rivals to gain greater competitive advantage. An essential part of the strategic planning process is to develop a shared vision and mission which is then clearly communicated through the strategic plan.

The book Strategic Management: Awareness and Change, written by John Thompson helps managers and leaders to think strategically and provides them with practical skills to develop strategic plans for achieving phenomenal organizational success as well as achieving their personal goals and objectives. It is well recognized that despite the best developed strategic plans organizations often fail to achieve the desired results. This program utilizes the innovative concept of 'the balanced scorecard' which helps in aligning the strategic plans to the day to day operations.

In today's intensely competitive and global marketplace, maintaining a competitive advantage by becoming a low cost leader or a differentiator puts a heavy premium on having a highly committed or competent workforce. Competitive advantage lies not just in differentiating a product or service or in becoming the low cost leader but in also being able to tap the company's special skills or core competencies and rapidly respond to customer's needs and competitor's moves. (Morris, 2007) In other words competitive advantage lies in management's ability to consolidate corporate-wide technologies and production skills into competencies that empower individual businesses to adapt quickly to changing opportunities.

In a growing number of organizations human resources are now viewed as a source of competitive advantage. There is greater recognition that distinctive competencies are obtained through highly ...