GMS 200 Lecture Notes - Lecture 6: Competitive Advantage, Strategic Business Unit, Strategic Management

• 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. Strategy -a comprehensive action plan that identifies long-term direction for an organization and guides resource utilization to accomplish organizational goals with sustainable competitive advantage. 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 depends in part of the organization"s competitive environment. Sets long-term direction for the total enterprise. Identifies how a division or strategic business unit will compete in products or services. Guides activities within one specific area of operations. Strategic management -the process of formulating and implementing strategies to accomplish long-term goals and sustain competitive advantage. Strategic analysis -process of analyzing the organization, the environment, its competitive position and current strategies.