ADMS 4900 Lecture Notes - Lecture 1: Competitive Advantage, Strategic Management, Stakeholder Management
Document Summary
These decisions address two basic questions: which industries should we compete in and how should we compete in those industries: firms must take necessary actions to implement their strategies. This requires leaders to allocate necessary resources and to design the organization to bring the intended strategies to reality: second, the essence of strategic management is the study of the reasons for some firms outperforming others. Managers need to determine how a firm is to compete so that it can obtain advantages that are sustainable over a period. Managers need to make such advantages sustainable rather than temporary: sustainable competitive advantage cannot be achieved through operational effectiveness alone. Trying to copy what its rivals do eventually leads to mutually destructive price competition, not long-term advantage. The four key attributes of strategic management: strategic management has four attributes, strategic management is directed toward overall organizational goals and objectives.