Professional Documents
Culture Documents
Prof. Vidhu Shekhar Jha Adapted from Michael A. Hitt R. Duane Ireland Robert E. Hoskisson
Ch1-1
Strategic Competitiveness
Achieved when a firm successfully formulates and implements a value-creating strategy
Above-Average Returns
Returns in excess of what an investor expects to earn from other investments with similar risk
Ch1-2
Commitments
Decisions
Actions
Strategic Competitiveness
Sustained Competitive Advantage Above-Average Returns
Ch1-3
Strategic Inputs
Chapter 2 External Environment Strategic Intent Chapter 3 Internal Environment Strategic Mission
Strategy Formulation
Chapter 4 Business-Level Strategy Chapter 5 Competitive Dynamics Chapter 8 International Strategy Chapter 6 Corporate-Level Strategy Chapter 9 Cooperative Strategies
Strategic Actions
& Innovation
Strategic Outcomes
Feedback
The pace of change is relentless.... and increasing Traditional industry boundaries are blurring, such as...
Computers Telecommunications
Ch1-7
Traditional sources of competitive advantage no longer guarantee success New keys to success include:
Flexibility Innovation Speed Integration
Ch1-8
Resource-Based Model
Resources Capability Competitive Advantage
An Attractive Industry
Strategy Implementation
Superior Returns
Ch1-9
Action required: Study the external environment, especially the industry environment.
Ch1-11
Action required: Locate an industry with high potential for aboveaverage returns.
Ch1-12
Environment above-average a strategy Selection of suggest returns are linked with abovepossible average returns in a particular industry
Ch1-13
Ch1-14
Ch1-15
Ch1-16
Action required: Identify firm resources. Study strengths and weaknesses relative to rivals.
Ch1-18
Inputs to a firms production process. an integrated Capacity for set of resources to perform a task or activity.
Ch1-19
Inputs to a firms Competitive production process. an integrated Capacity for set of resources to Advantage integratively perform a Ability task or activity. of a firm to outperform its rivals
Ch1-20
Inputs to a firms Competitive production process. an integrated Capacity for set of resources to Advantage An integratively perform a Attractive Ability firm to task or activity. of aIndustry outperform its rivals Location of an industry with opportunities that can be exploited by the firms resources and capabilities
Ch1-21
Inputs to a firms Competitive production process. an integrated Capacity for set of resources to Advantage An integratively perform a Attractive Ability firm to task or activity. of aIndustry outperform its rivalsStrategy Location of an industry Formulation with opportunities that and can be exploited by the Implementation firms resources and Strategic actions taken to capabilities earn above-average returns
Ch1-22
Inputs to a firms Competitive production process. an integrated Capacity for set of resources to Advantage An integratively perform a Attractive Ability firm to task or activity. of aIndustry outperform its rivalsStrategy Location of an industry Formulation with opportunities that and Superior can be exploited by the Implementation Returns firms resources and Strategic actions takenaboveEarning of to capabilities earn above-averagereturns average returns
Ch1-23
Rare
Ch1-24
When these four criteria are met, Resources and Capabilities become:
Core Competencies
Core Competencies are resources and capabilities that can serve as a source of Competitive Advantage.
The Resource-Based model argues that Core Competencies are the basis for a firms Competitive Advantage, Strategic Competitiveness and Ability to Earn Above-average Returns.
Ch1-25
Strategic Intent
Winning competitive battles through deciding how to leverage internal resources, capabilities, and core competencies.
Strategic Mission
An application of strategic intent in terms of products to be offered and markets to be served.
Ch1-26
Stakeholders:
Groups who are affected by a firms performance and who have claims on its wealth
The firm must maintain performance at an adequate level in order to maintain the participation of key stakeholders
Capital Market
Stock market/Investors Debt suppliers/Banks
Firm
Product Market
Primary Customers Suppliers
Organizational
Employees Managers Non-Managers
Ch1-27
Stakeholder Involvement
Each of the key stakeholders wants a piece of the same pie
How do you divide the pie in order to keep all of the stakeholders involved?
2
How do you increase the size of the pie so that there is more to go around?
Ch1-28
Strategic Inputs
Chapter 2 External Environment Strategic Intent Chapter 3 Internal Environment Strategic Mission
Strategy Formulation
Chapter 4 Business-Level Strategy Chapter 5 Competitive Dynamics Chapter 8 International Strategy Chapter 6 Corporate-Level Strategy Chapter 9 Cooperative Strategies
Strategic Actions
& Innovation
Outcomes
Strategic
Feedback