Running head: STRATEGIC MANAGEMENT AND STRATEGIC COMPETITIVENESS
6
STRATEGIC MANAGEMENT AND STRATEGIC COMPETITIVENESS
Strategic Management and Strategic Cmpetitiveness
KaToya Jones
Dr. Wanda Tillman
Business Administration Capstone
January 14, 2018
Introduction
Strategic competitiveness is gained when an organization successfully establishes as well as implements a value-creating approach. In this perspective, strategy refers to a cohesive and coordinated combination of commitments and also to mention actions developed to exploit primary competencies in order to gain a competitive advantage (Hitt, Ireland, & Artz, 1999). This occurs when a firm implements a strategy unique from that of competitors giving them leverage. As a result, the firm is able to ensure above average returns and satisfy investor’s expectations from other investments with a common likelihood of risk. This paper will focus on Twitter, Inc to examine how globalization and advancement in technology have impacted the company. Further, applying the industrial organization model and resource-based model I will explore how the company could earn more profits, analyze how both the vision and the statement of the company impact its overall triumph and lastly investigate how Twitter’s stakeholders impact on the its overall success.
How globalization and technology changed Twitter Inc.
The modern world is transforming into a time of technological invention. Existence of new innovations on top of the available technological resources is such a remarkable achievement. As it improves, it as well spreads to other parts of the world. In this case the global spread of innovations it avails vast connections which consequently creates new markets across the world. Focusing on social media, it is one of those tools that can easily be exploited by those who are connected. Basically, as access is gained on a larger scale, it avails multiple market opportunities to those outsourcing ideas. In today’s world, the use of social media has revolutionized out society. Basing this on real life events various social media platforms have contributed to activism. This, however, has been criticized by many but the point is that social media is revolutionizing the world. Therefore, there’s no doubt that the present as well as the future transformation will still use social media. This is because social media platforms capture considerable large audience within a short period of time. In this case, the widespread of social media platforms such as Twitter; the company growth cannot be stopped.
Globalization and technology have contributed to the consistent growth of the company. For instance, according to Complete the micro-blogging sites recorded 23 million unique users with an increased growth (Java et al, 2007, August). This does not include the large number of people that do not visit Twitter.com but instead use third party service to update. Focusing on the trend the company hopes to h ...
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Running head STRATEGIC MANAGEMENT AND STRATEGIC COMPETITIVEN.docx
1. Running head: STRATEGIC MANAGEMENT AND
STRATEGIC COMPETITIVENESS
6
STRATEGIC MANAGEMENT AND STRATEGIC
COMPETITIVENESS
Strategic Management and Strategic Cmpetitiveness
KaToya Jones
Dr. Wanda Tillman
Business Administration Capstone
January 14, 2018
Introduction
Strategic competitiveness is gained when an organization
successfully establishes as well as implements a value-creating
approach. In this perspective, strategy refers to a cohesive and
coordinated combination of commitments and also to mention
actions developed to exploit primary competencies in order to
gain a competitive advantage (Hitt, Ireland, & Artz, 1999). This
occurs when a firm implements a strategy unique from that of
competitors giving them leverage. As a result, the firm is able
to ensure above average returns and satisfy investor’s
expectations from other investments with a common likelihood
of risk. This paper will focus on Twitter, Inc to examine how
globalization and advancement in technology have impacted the
company. Further, applying the industrial organization model
and resource-based model I will explore how the company could
earn more profits, analyze how both the vision and the
statement of the company impact its overall triumph and lastly
investigate how Twitter’s stakeholders impact on the its overall
2. success.
How globalization and technology changed Twitter Inc.
The modern world is transforming into a time of technological
invention. Existence of new innovations on top of the available
technological resources is such a remarkable achievement. As it
improves, it as well spreads to other parts of the world. In this
case the global spread of innovations it avails vast connections
which consequently creates new markets across the world.
Focusing on social media, it is one of those tools that can easily
be exploited by those who are connected. Basically, as access is
gained on a larger scale, it avails multiple market opportunities
to those outsourcing ideas. In today’s world, the use of social
media has revolutionized out society. Basing this on real life
events various social media platforms have contributed to
activism. This, however, has been criticized by many but the
point is that social media is revolutionizing the world.
Therefore, there’s no doubt that the present as well as the future
transformation will still use social media. This is because social
media platforms capture considerable large audience within a
short period of time. In this case, the widespread of social
media platforms such as Twitter; the company growth cannot be
stopped.
Globalization and technology have contributed to the
consistent growth of the company. For instance, according to
Complete the micro-blogging sites recorded 23 million unique
users with an increased growth (Java et al, 2007, August). This
does not include the large number of people that do not visit
Twitter.com but instead use third party service to update.
Focusing on the trend the company hopes to have a consistent
growth in the future. In addition, the company has also gained
approval from multinational corporations. According to a report
by Mashable’s, twitter as a social media platform is used by
many corporations. Generally, the company has continued to
3. receive growth internationally as people are learning the value
of using Twitter.
How industrial organization model and the resource-based
model are used to increase the company returns
Before deciding which model would best be appropriate for
Twitter in order for them to earn high returns than expected, it
important to understand each model? Starting with the industrial
organizational model, it’s defined as a field of economic
concerned with the strategic behaviors if firms, market
competition, rules and regulations to name a few. The model is
much related to economic theory that focuses on price to
industries. Therefore, the whole idea is linked to understanding
methods by which a firm operates; improve government policy
in relation to these industries. Resource-based model, on the
other hand, is defined as a competitive advantage. As a result,
the model tends to focus on organizational internal resources,
the firm's strengths, weakness, in comparison to the
environmental structures of competitive benefits on
opportunities and threats. Therefore, after examining the two
models, I prefer the resource-based model because it could
allow twitter the greater chances to expand their returns and in
that regard gain, high returns because of its main concentration
on the corporation’s strengths as well as weaknesses.
How both the vision and mission statement of the company
influences its overall performance?
Both statements are critical elements of a corporation
organizational strategy. In most cases, most established
companies create organizational mission as well as vision
statements, which serve as a foundational guide to the
establishment of company goals and objectives. Before
assessing how these elements have influenced Twitter Inc, a
company mission serves as a guide to an organization’s decision
making (Ingenhoff, & Fuhrer, 2010). In this case stakeholders
(shareholders, leaders, and employees) are the target of the
mission. Vision, on the other hand, directs and gives the
4. corporation a clear perspective of its values. To give everyone
the power to create and share ideas and information, instantly,
without barriers is the company’s mission. I think Twitter’s
statement is a pretty good on the core purpose. A vision
statement should give people a clear picture of what the
company wants to be. Twitter’s vision is for it to become a
premiere micro-sharing platform. These two statements have
and will continue to be the reason for consistent growth for the
company because stakeholders are part of the inspiration that
the company seeks in the future. As a result of Twitter’s
employees remain loyal, while fostering an atmosphere of
success, as Twitter makes it known as their stakeholders
succeed, so does it.
How stakeholders impact the overall success of Twitter Inc
The success of any company is gifted by stakeholders. In this
case, success tends to come from a combination of two factors.
To begin with the ability of a company to deliver real value to
the stakeholders while the other one is the ability of
stakeholders recognizes the value and appreciates it (Hitt et al.,
1999). In addition, another important factor in achieving the
success of an organization is the meeting of the stakeholder’s
expectations. Twitter is owned by a few investors that supply a
firm’s capital. They expect Twitter to preserve growth the
health they have invested in the company. Satisfied stakeholders
reinvest back into the company, while others even invite other
new investors, while those who feel the company is not meeting
their expectations sell their stock. The company engaged
stakeholders in various ways because it believes that the path of
business sustainability is a process. Literally, experiences is
what makes up a journey, thus the company is promoting
sustainability through;
• Branding- the fundamental strategy of corporate
sustainability is how a company communicates with its
5. stakeholders. As an emerging role of social media, the company
is engaging stakeholders to share their broader corporate
responsibility agenda.
• Prospecting- by using the Twitter search function, it’s
possible to find prospective buyers and vice-versa with who you
can do deals, just to mention.
• Networking in today’s world, networking has evolved as an
important aspect of life. Using Twitter as a tool it is possible to
foster relationships.
References
Hitt, M., Ireland, R., & Artz, K. (1999). Strategic management
and strategic competitiveness. Strategic management:
competitiveness and globalization.
Pfeffer, J., & Veiga, J. F. (1999). Putting people first for
organizational success. The Academy of Management
Executive, 13(2), 37-48.
Ingenhoff, D., & Fuhrer, T. (2010). Positioning and
differentiation by using brand personality attributes: Do mission
and vision statements contribute to building a unique corporate
identity?. Corporate Communications: An International
Journal, 15(1), 83-101.
Java, A., Song, X., Finin, T., & Tseng, B. (2007, August). Why
we twitter: understanding microblogging usage and
communities. In Proceedings of the 9th WebKDD and 1st SNA-
KDD 2007 workshop on Web mining and social network
analysis (pp. 56-65). ACM.
Assignment 2:External and Internal Environments
Using the corporation you chose from Assignment 1, examine
its industry. Research the company on its own Website, the
6. public filings on the Securities and Exchange Commission
EDGAR database (http://www.sec.gov/edgar.shtml), in the
University's online databases, and any other sources you can
find. The annual report will often provide insights that can help
address some of these questions.
Write an eight (8) page paper in which you:
1. Choose the two (2) segments of the general environment that
would rank highest in their influence on the corporation you
chose. Assess how these segments affect the corporation you
chose and the industry in which it operates.
2. Considering the five (5) forces of competition, choose the
two (2) that you estimate are the most significant for the
corporation you chose. Evaluate how well the company has
addressed these two (2) forces in the recent past.
3. With the same two (2) forces in mind, predict what the
company might do to improve its ability to address these forces
in the near future.
4. Assess the external threats affecting this corporation and the
opportunities available to the corporation. Give your opinions
on how the corporation should deal with the most serious threat
and the greatest opportunity. Justify your answer.
5. Give your opinion on the corporation's greatest strengths and
most significant weaknesses. Choose the strategy or tactic the
corporation should select to take maximum advantage of its
strengths, and the strategy or tactic the corporation should
select to fix its most significant weakness. Justify your choices.
6. Determine the company’s resources, capabilities, and core
competencies.
7. Analyze the company’s value chain to determine where they
can create value using the resources, capabilities, and core
competencies discussed above.
8. Use at least three (3) quality references. Note: Wikipedia and
other Websites do not quality as academic resources.
Your assignment must follow these formatting requirements:
· Be typed, double spaced, using Times New Roman font (size
7. 12), with one-inch margins on all sides; references must follow
APA or school-specific format. Check with your professor for
any additional instructions.
· Include a cover page containing the title of the assignment, the
student’s name, the professor’s name, the course title, and the
date. The cover page and the reference page are not included in
the required page length.
The specific course learning outcomes associated with this
assignment are:
· Identify how the six segments of the general environment
affect an industry and its firms.
· Identify the five forces of competition.
· Analyze the external environment for opportunities and threats
that impact the firm.
· Analyze the internal environment of a company for strengths
and weaknesses that impact the firm’s competitiveness.
· Use technology and information resources to research issues in
business administration.