Management and Organizational Studies 4410A/B Chapter 1 - strategic management - creating competitive advantage.docx

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Western University
Management and Organizational Studies
Management and Organizational Studies 4410A/B
Raymond Leduc

Chapter 1Strategic Management Creating Competitive Advantages An OverviewAn organizations performance is directly linked to choices its managers make about strategy AND organizations ability to execute strategy successfully ExamplesoWalMart vs Canadian retailAggressive strategycaused the downfall of Canadian firms Eatons Kmart etcHBC fell into the hands of foreign owners Create new competitive landscape for some Canadian firms Canadian TireWhat is Strategic ManagementLeaders must take on incremental managementoView job as making series of minor changesimprove efficiency of firms operationsWorks well in simpleunchangingstable industries BUT not many of these are leftTherefore leaders must concurrently make minor AND major changes oMust be proactive anticipate change continually refine strategies and when necessary make significant changes to themDefining Strategic Management Strategic management consists of analysis decisions and actions an organization undertake to create and sustain competitive advantages oCompetitive Advantage what makes a companys offerings superior to those of its competitors Superiority customers consumers and product userschoose to satisfy their needs using that particular companys offerings over a competitorsoCompetitive advantage can be achieved via different avenues uniqueness quality service priceetcSuperiority comes in many dimensions Applicable to all organizations governments court systems etc2 main elements of strategic management13 ongoing processesAnalysis of Strategic goalsvisions where doyou want to be mission how will you get there and strategic objectives Decisions considers domestic and international operationsWhich industries should we compete inHow should we compete in those industriesActions provides insights and experiences and firms capabilitiesDesign organization to bring intended strategies to realityAllocate necessary resources oStrategic management is a process and an evolving managerial responsibility and requires a great deal of interaction among Analysis Decisions and Actions engage Analysis Decisions and Actions at all times 2Determine how a firm is to compete so it can obtain advantages that are sustainable over a periodoHow should we compete to create competitive advantages in the market placeLowcost vs Differentiation vs HybridoHow should we create competitive advantages in the marketplace that are unique and valuable but also difficult for competitors to copy or substituteSustainable vs TemporaryCannot be achieve through operational effectiveness aloneNEED innovationsoEx TQM JIT benchmarking business process reengineering outsourcing Ideas that work are almost always copied immediatelyEx American Airlines implemented Frequent Flyer Programwithin months all airlines in the world had a similar programThe Four Key Attributes of Strategic Management
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