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Exam movies to watch Internal Affairs 2 –DVD will be provided for personal view. The ‘CASINO’ Martin Sorcese’s film-staring Rober De Niro, Joe Pesci & Sharon Stone – will be provided.
Organizational Strategy 3 steps of Strategy –making process-to produce sustainable competitive advantage Assess need for strategic change Conduct Situational Analysis Choose strategic Alternatives Providing better value for customers than competitors can
Sustainable competitive advantage concept Firm use resources to create and sustain competitive advantage-to provide greater value to customer Your competitive advantage becomes sustainable when competitors cannot duplicate the benefits it provides
Elements needed in achieving sustainable competitive advantage Firm’s resources must be valuable (capable of improving efficiency and effectiveness) people,things in your company,product or services It must be rare/unique resources (not own by anyone) Imperfectly imitable (extremely costly or difficult to duplicate) No substitutable- competitors cannot substitute other resource to produce similar value.
Next you need a strategy But before you develop a strategy you first need to understand the process of making one. There are 3 steps in making a strategy
3 steps of the strategy making process Assess need for strategic change Conduct a situational analysis Choose strategic alternatives
Assessing the need Decide on what the firm/the company /the organization needs
Situational Analysis Basically it’s a SWOT analysis Assessment of the strengths and weaknesses in an organization and the opportunities and threats in its external environment
Choosing strategic Alternatives Choose strategic alternative that will help companies to maintain a sustainable competitive advantage competitors cannot duplicate the benefits you provides
Practice Being A Manager Organizational strategy is aimed at achieving sustainable competitive advantage over rivals in a particular market. This exercise will offer you the opportunity to consider how companies in the restaurant industry might develop a strategy and attempt to gain sustainable competitive advantage.
Step 1-Develop a concept for a new restaurant business Get into groups of 6. You may choose to develop your concept as local, regional or national company-but it must be opened locally You must include 1) name of your restaurant/chain 2) description of your menu, layout and other distinguishing features c) likely direct competitors of your new concept Present your concept informally 2 minutes
Step 2 others be the judge Each teams goal is to achieve “Most likely to Succeed” concept. Other teams should look into and apply the Sustainable Competitive Advantage Other teams evaluate and must give comment competitors cannot duplicate the benefits you provides
Q&A What are the challenges of achieving sustainable competitive advantage in the restaurant business?-what factors that determine-locally Do you think restaurant chains have a built-in sustainable competitive advantage over local competition in your area?-what is the source then?