GMS 200 Lecture Notes - Lecture 7: Competitive Advantage, Strategic Business Unit, Swot Analysis

• School: Ryerson University
• Department: Global Management Studies
• Course: GMS 200
• Professor: Lori Anne Heckbert

Document Summary

Competitive advantage-operating with an attribute or set of attributes that allows an organization to outperform its rivals. Sustainable competitive advantage- one that is difficult for competitors to imitate. Cost and quality (apple high nokia low) Barriers to entry (entering large industry, airplanes/trains) Financial resources (capital can be used to invest) Strategy- a comprehensive action plan that identifies long-term direction for an organization and guides resource utilization to accomplish organizational gaols with sustainable competitive advantage (a plan to succeed) Strategic intent- focusing all organizational energies on a unifying and compelling goal. Goal of strategic management is to create above-average returns for investors. Returns exceeding those for alternative opportunities at equivalent risk. Earning above-average returns depend in part on the organization"s competitive environment. Identifies how a division or strategic business unit will compete in products or services. Guides activities within one specific area of operations. An important test of the mission is how well it serves the organization"s stakeholders.