4 Perspectives on Competitive Advantage
managing strategically, I/O view, RBV, Guerilla view
Managing Strategically
formulating and implementing strategies that allow an org to develop and maintain a competitive advantage
Competitive advantage
what sets an org apart, its competitive edge, necessary for long-term success and survival of an org
Industrial Organization View
I/O, focuses on analyzing the external environment, develop by Michael Porter, focuses on the structural forces within an industry as means to determine in which industry to compete
Weakness of I/O view
ignores the characteristics of individual companies
Resource Based View
RBV, looks at internal environment, views firm resources as essential to competitiveness, orgs are a collection of assets and capabilities, must be unique (financial, physical, human, intangible)
VIRO/E
resources must be VALUABLE, be RARE, be HARD TO IMITIATE, be EXPLOITABLE
Guerilla View
competitive advantage is temporary, successful orgs must be adept at rapidly and repeatedly disrupting current situations and radically surprising competitors to keep them off balance
3 Driving Forces in the New Business Environment
the information revolution, technology, and globalization
The Information Revolution
driving force in new business environment, information is the essential resource of production
Technology
driving force in new business environment, using equipment, materials, knowledge, and experience
3 Ways Technology Impacts Work
innovation, bottom-up or mass collaboration capability, and performance
Globalization
driving force in the new business environment, global marketplace and global competitors
4 Major Implications of the Driving Forces
1) continual change, 2) reduced need for physical assets, 3) vanishing distance and compressed time, 4) increase vulnerability
3 Critical Success Factors
ability to embrace change, creativity and innovation capabilities, and being a world-class organization
2 Organizational Elements that Guide Strategic Decision Makers in Managing Strategically in Today's Context
1) organizational vision and mission, and 2) corporate social responsibility and ethics
Organizational Vision
broad comprehensive picture of what a leader wants an org to become, a single statement
Mission Statement
statement of what specific org units do and what they hope to accomplish
4 Components of an Effective Vision
vision is built on the foundation of the org's beliefs and values, vision elaborates a purpose, vision explains what the org does, vision specifies goals and guides actions
CSR
corporate social responsibility, the obligation of organizational decision makers to make decisions and act in ways that recognize the interrelatedness of business and society
Stakeholders
individuals or groups who have a stake in or are significantly influenced by the org
Ethics
principles that define right and wrong decisions and behavior