Nelson Chapter 1

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© 2006 by Nelson, a division of Thomson Canada Limited. 1-1

Strategic Management &

Strategic Competitiveness

Chapter One


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Chapter 5 Bus. - Level

Strategy

Chapter 6 Competitive

Dynamics

Chapter 7 Corp. - Level

Strategy

Chapter 9International

Strategy

Chapter 10 CooperativeStrategies

Chapter 8 Acquisitions &estructuring

Chapter 11

Corporate

!overnance

Chapter 12 Structure

& Control

Chapter 13Strategic

Lea"ership

Chapter 14Entrepreneurship

& Innovation

S t r a t e g i c

I n p u t s

S t r a t e g i c A c t i o n s

S t r a t e g i c

O u t c o m e

s

Chapter 4Internal

#nvironment

Chapter 3#$ternal

#nvironment Strat. Intent

Strat. Mission

The Strategic .

Management .

%rocessStrategy ormulation Strategy Implementation

StrategicCompetitiveness

Chapter 1

A'ove Averageeturns

Chapter 2 ee"'ac(

StrategicCompetitiveness

Chapter 1


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What is State!y"

# $n inte!ated and %oodinated set of

%ommitments & a%tions desi!ned toe'(loit %oe %om(eten%ies and !ain a

%om(etitive advanta!e.


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© 2006 by Nelson, a division of Thomson Canada Limited. 1-)

Core Competencies) esources

an" Capa'ilities

esources) *n(+ts into a fims (od+%tion

(o%ess, s+%h as %a(ital e+i(ment, sills of

individ+al em(loyees, (atents, finan%es, and

talented mana!es.

Capa'ility) The %a(a%ity fo a set of eso+%es to

(efom a tas o an a%tivity in an inte!ated

manne.

Core competencies ae eso+%es and

%a(abilities that seve as a so+%e of %om(etitive

advanta!e fo a fim ove its ivals.


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Core competencies

© 2006 by Nelson, a division of Thomson Canada Limited. 1-/

an+fa%t+in! e'%ellen%e

'%e(tional +ality %ontol

$bility to (ovide bette (od+%ts S+(eio desi!n %a(ability

*nnovativeness in develo(in! ne (od+%ts

$ ston! +ndestandin! of %+stome needs and tastes


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What is State!y"

# $n inte!ated and %oodinated set of

%ommitments & a%tions desi!ned toe'(loit %oe %om(eten%ies and !ain a

%om(etitive advanta!e.


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Ty(es of State!y

© 2006 by Nelson, a division of Thomson Canada Limited. 1-

4eneal State!y

Co(oate Level State!y

Com(etitive State!y5 +siness Level State!y 7+n%tional State!y

8(eatin! State!y


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:esied State!i% 8+t%omes

State!i% Com(etitiveness

$%hieved hen a fim s+%%essf+lly fom+latesand im(lements a val+e-%eatin! state!y.

8%%+s hen a fim develo(s a state!y that%om(etitos ae not sim+ltaneo+sly im(lementin!.

S+stained Com(etitive $dvanta!e

$bove-$vea!e ;et+ns;et+ns in e'%ess of hat an investo e'(e%ts toean fom othe investments ith simila is.


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© 2006 by Nelson, a division of Thomson Canada Limited. 1-=

*m(otant definitions

;is

$n investos +n%etainty abo+t the e%onomi%!ains o losses es+ltin! fom a (ati%+lainvestment.

;et+ns e+al to hat an investo e'(e%ts fomothe investments ith simila amo+nt of is.

$vea!e et+ns

State!i% mana!ement (o%essThe f+ll set of %ommitments de%isions and a%tionse+ied fo a fim to a%hieve state!i%%om(etitiveness and ean above avea!e et+ns.


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The State!i% ana!ement


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$ltenative odels of S+(eio ;et+ns

In"ustrial

Organi*ationMo"el

+he #$ternal #nvironment

An Attractive In"ustry

Strategy ormulation

Assets an" S(ills

Strategy Implementation

Superior eturns

esource-

Base"

Mo"el

esources

Capa'ilities

Competitive A"vantage

An Attractive In"ustry

Strategy Implementation

Superior eturns

8*8*


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7o+ $ttib+tes of ;eso+%es and

Ca(abilities >Com(etitive $dvanta!e?

The firm is organized appropriately toThe firm is organized appropriately toobtain the full benefits of the resources inobtain the full benefits of the resources inorder to realize a competitive advantage.order to realize a competitive advantage.

ValuableValuable Allow the firm to exploit opportunities orAllow the firm to exploit opportunities orneutralize threats in its externalneutralize threats in its externalenvironment.environment.

RareRare Possessed by few, if any, current andPossessed by few, if any, current and potential competitors. potential competitors.

Costly to imitateCostly to imitate When other firms cannot obtain them orWhen other firms cannot obtain them or

must obtain them at a much higher cost.must obtain them at a much higher cost.

Organized to beOrganized to be

exploitedexploited R e s o u

r c e s a n d C a p a b i l i t i e s

R e s o u

r c e s a n d C a p a b i l i t i e s


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Core CompetenciesCore Competencies

;eso+%es and %a(abilities thatmeet these fo+ %iteia be%ome a so+%e

of@

ValuableValuable

RareRare

Costly to imitateCostly to imitate

Organized to beOrganized to be

exploitedexploited

Core CompetenciesCore Competencies

R e s o u r c e s a n d C a p a b i l

i t i e s

R e s o u r c e s a n d C a p a b i l i t i e s


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C8s anin! of b+siness im(otan%e

1. $ ston! & ell tho+!ht o+t state!y

2. a'imiAin! %+stome satisfa%tion & loyalty

3. +siness leadeshi(, +ality (od+%ts & sevi%es

). Con%en fo %onsistent (ofits

/. Ston! & %onsistent (ofits


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Staeholdes


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8!aniAational state!ists

To( level mana!es, e'e%+tives, to(mana!ement team, o !eneal mana!es

Nelson Chapter 1

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