Element of Strategic Management
1) Competitive Advantage
-Basic assumption in strategic management is that firms strive to achieve a position that will enable them to out perform their competitors and earn higher revenues.
2) Resources-based View & Organizational View
There are 2 view that can explain why some firms are able to achieve greater advantages over their rivals:
a) Resource-based View
-State that a firm's resources are most important in getting and sustaining a company;s competitive advantages.
b) Organizational View
- Contends that the industry in which the firm chooses to compete has a stronger influence in the firm's performance than the firm's internal resources such as management ,marketing or finance.
3) Resources and Capabilities
-Assume that each organization has a unique collection of resources and capabilities that provide a source of the firm's competitive advantage.
4) Vision and Mission
a) Vision
-Statement about what your organization want to become
b)Mission
-Differ from vision that away of behaving and concerned with the way an organization is managed today, with its purpose or reason for being.
5) Objective
-Desired or specific result of a planned activity that should be achieved by a specific time
Characteristic of Objective
-suitable
-measurable
-feasible
-acceptable
-flexible
-motivating
-understandable
-commitment
-people participation
-linkage
6) Strategy
-Make a problem easy to understand and solve while achieving competitive advantage through being different.
7) Strategist
-A skillful person i designing and planning action and policy to achieve a major or overall aim.
8) Stakeholders
-Individual or group who can effect or are effected by the actions, decisions, policies,practices or goals of an organization.
9) SWOT
Strenght
-Anythings internal to the company that may lead to an advantage relative to the competitors and a benefit relative to customers.
Weaknesses
-Anythings internal that may lead to a disadvantages relative to competitors ad customers.
Opportunities
-External forces that helpful to the organizations in achieving company objective.
Threats
-External environment forces that can impede a firm's effort to achieve its objectives.
