DIZON, MARY JANE S.

A-431

STRATBUSANA

Task 1

Due January 13, 2022

Answer the following questions as briefly as you can. Do not forget to indicate your references you
utilized.

1. What are strategic competitiveness, strategy, competitive advantage, above-average returns, and
the strategic management process?

Strategic competitiveness is when a company has established a strategy that creates value
which serves as foundation for the firm in satisfying its stakeholders (Cavalcanti, 2020). Strategy is a
way of acquiring competitive advantage where in it implements comprehensive and planned set of
commitments and activities meant to capitalize on key skills. Competitive advantage is a position
where in a company has the upper hand since it possesses a quality that competitors don’t have.
Above-average returns are those that outperform what an investor would expect to receive from
other investments with a comparable level of risk. Lastly, the strategic management process is a
continual effort to improve the company in order to outperform rivals.

2. What are the characteristics of the current competitive landscape? What two factors are the
primary drivers of this landscape?

The characteristics of the current competitive landscape is a perilous business world where
in the industry and markets are described as fast-changing. Global competitiveness is also required
and there is severe consequences for failure. Another characteristic of the current competitive
landscape is the developing and implementing strategy where in it results to well-planned actions
and avoids reactions. The two primary drivers of this landscape are globalization and technology.

3. According to the I/O model, what should a firm do to earn above-average returns?

Based on the I/O model, in order for a firm to earn above-average returns, it first needs to
study the external environment that consists of the general environment, industry environment and
the competitor environment. Second, an attractive industry should be located which has a great
potential to earn above-average returns. Third, a strategy that is particular and effective in the said
attractive industry should be formulated. Fourth, assets and skills must be obtained in order for the
strategies to be implemented. Lastly, in the strategy implementation, a firm should utilize its
strengths to be able to perform certain actions that leads towards the effective implementation of
the strategy which eventually result to the earning of above-average returns.

4. What does the resource-based model suggest a firm should do to earn above-average returns?

According to resource-based model, in order for a firm to earn above-average returns, it first
needs to determine the firm’s resource which will be utilized in the production process. Second, the
firm should identify the capabilities of the recourses it possesses in accomplishing a task or activity.
Third, the competitive advantage of a firm among other companies should be identified. Fourth, a
firm should be able to find an attractive industry that will benefit from the firm’s resources and
capabilities. Lastly, strategy formulation and implementation should be done that will allow the firm
to earn above-average returns.
DIZON, MARY JANE S. A-431

5. What are vision and mission? What is their value for the strategic management process?

A vision statement is designed to inspire and encourage employees by painting a picture of

where the firm is going. A mission statement, on the other hand, describes the business sector in
which a firm works and outlines its primary purpose. The creation of vision and mission statements
is a critical component of the strategic management process. Managers may develop strategic
objectives that are linked with the company's long-term goals after clearly defining the
organization's vision and mission (MacDonald, 2019).

6. What are stakeholders? How do the three primary stakeholder groups influence organizations?

A stakeholder is a party who has an interest in a firm and may influence or be influenced by
it. The three primary stakeholder groups are capital market stakeholders, product market
stakeholders and organizational stakeholders. The capital market stakeholders influence
organizations by giving expectations of return on their investment which will make the management
work hard to maximize the company’s value. While, the product market stakeholders influence
organizations in their decision-making when it comes to buying and selling of products. Lastly,
organizational stakeholders influence the organization by having the expectation of being in a
rewarding and growing work environment.

7. How would you describe the work of strategic leaders?

Strategic leaders can visualize, plan, lead, and make the most of the resources available to
them in order to implement successfully. Thus, their works are leaning towards the efficient
accomplishment of the company’s vision and mission. Strategic leaders integrate their strategic
strategy and strategic management.  Hard work, thorough analyses, honesty, desire for
accomplishment and common sense are must-haves to be a strategic leader.

8. What are the elements of the strategic management process? How are they interrelated?

Start with the examination of both the exterior and interior surroundings. Then, assess
market possibilities and risks. Then, decide how to use fundamental competencies. Then, employ
strategic intent to win competitive challenges by leveraging resources, capabilities, and core
competencies. Then, connect strategy formulation and implementation. Finally, solicit input to
enhance strategies. They are interrelated with each other in a way that the elements are like
prerequisites of the other. Dealing with the elements individually is a must in order to execute a
proper strategic management process.
DIZON, MARY JANE S. A-431

References:

Cavalcanti, H. (2020). Strategic Management and Strategic Competitiveness.

https://www.linkedin.com/pulse/strategic-management-competitiveness-hermano-cavalcanti

MacDonald, L. (2019). What Do Clear Vision & Mission Statements Contribute to the Strategic
Management Process? https://smallbusiness.chron.com/clear-vision-mission-statements-contribute-
strategic-management-process-24100.html

Wooll, M. (2019). Everything you need to know about strategic leadership.

https://www.betterup.com/blog/strategic-leadership