GMS 200 Chapter 9: Chapter 9 - Strategic Management

• School: Ryerson University
• Department: Global Management Studies
• Course: GMS 200
• Professor: Shavin Malhotra

Document Summary

Competitive advantage: comes from operating in successful ways that are difficult to imitate. Example: wal-mart, it allows the retailer to quickly track sales and monitor inventories. Sustainable competitive advantage is difficult for competitors to imitate. Strategy: plan guiding resources allocation to achieve long term organization goals. Strategy provides the plan for allocating and using resources with consistent strategic intent: focus and applies organizations energies on a unifying and compelling goal. Strategies don"t just happen, they must be created and strategies alone don"t automatically bring success. Strategic management: process of formulating and implementing strategies. Essence of strategic management is looking ahead, understanding the environment and the organizations, effectively positioning the organization for competitive advantage in changing times and then achieving them. Goals for any business should be superior profitability. Creates value for above average returns: exceed what could be earned from alternative investments of equivalent risk. In a monopoly environment: one 1 player and no competition.