MGT 201 Chapter Notes - Chapter 8: Swot Analysis, Cost Leadership, Aldi
Document Summary
To think strategically means to take the long-term view and see the big picture. Managers in all types of organizations, including businesses, nonprofit organizations, and government agencies have to think about how the organization fits in the environment. Strategic management refers to the set of decisions and actions used to formulate and implement strategies that will provide a competitively superior fit between the organization and its environment so as to achieve organizational goals. A strategy is the plan of action that describes resource allocation and activities for dealing with the environment, achieving a competitive advantage, and attaining goals. Competitive advantage refers to what sets the organization apart from others and provides it with a distinctive edge in the marketplace. Four ele(cid:373)e(cid:374)ts of (cid:272)o(cid:373)petiti(cid:448)e ad(cid:448)a(cid:374)tage are the (cid:272)o(cid:373)pa(cid:374)(cid:455)"s target (cid:272)usto(cid:373)er, (cid:272)ore (cid:272)o(cid:373)pete(cid:374)(cid:272)ies, synergy, and value. A core competence is something that the organization does particularly well in comparison to others.
