Strategic Management Session 2: Managing Strategically

Managing Strategically Managing Strategically: Making decisions and implementing strategies that develop and maintain Competitive Advantage (The Holy Grail of Strategy!) - Recognise the impact of dynamic External Factors - Capitalise on organisational Resources and Capabilities

Managing Strategically: Making decisions and implementing strategies that develop and maintain Competitive Advantage (The Holy Grail of Strategy!)

- Recognise the impact of dynamic External Factors

- Capitalise on organisational Resources and Capabilities

Managing Strategically Competitive Advantage (or Competitive Edge) - Sets an Organisation apart from competitors - Having something other competitors don’t have - Doing something better than other organisations - Doing something that other organisations cannot do - Necessay for long-term success and survival

Competitive Advantage (or Competitive Edge)

- Sets an Organisation apart from competitors

- Having something other competitors don’t have

- Doing something better than other organisations

- Doing something that other organisations cannot do

- Necessay for long-term success and survival

Managing Strategically Industrial Organization (I/O) View Focus of the strategic analysis is external: - Structural Forces (Industry Characteristics) - Competitive Environment - Michael Porter

Industrial Organization (I/O) View

Focus of the strategic analysis is external:

- Structural Forces (Industry Characteristics)

- Competitive Environment

- Michael Porter

Managing Strategically Resource-Based View (RBV) Exploiting resources successfully helps to develop and maintain competitive advantage: Differences in organisational culture, business experiences, assets and capabilities Link internal assets and capabilities with the environment Key assets (resources) give a firm sustainable competitive advantage: Financial, Physical, Human, Intangible, Structural-Cultural Ideally the resources must be unique

Resource-Based View (RBV)

Exploiting resources successfully helps to develop and maintain competitive advantage:

Differences in organisational culture, business experiences, assets and capabilities

Link internal assets and capabilities with the environment

Key assets (resources) give a firm sustainable competitive advantage: Financial, Physical, Human, Intangible, Structural-Cultural

Ideally the resources must be unique

Managing Strategically Guerilla View Competitive advantage is only temporary! Changes that characterize the environment: Continual Radical Revolutionary Successful organisations must be adept at: Rapid and repeated disruptions of the current situation Radical surprises keep competitors off balance!

Guerilla View

Competitive advantage is only temporary!

Changes that characterize the environment:

Continual

Radical

Revolutionary

Successful organisations must be adept at:

Rapid and repeated disruptions of the current situation

Radical surprises keep competitors off balance!