Final for Strategic Management
Strategic Management Process As defined in the text (pg 6), strategic management process is the combination of things done by a firm to achieve strategic competitiveness and above-average-return. Strategic competiveness is the firms well planned and formulated strategy for effectively competing in a given market. Also, when a firm formulates the strategy, they must keep their investors in mind by striving to maximize investment returns. The strategic management process requires the firm to first perform external and internal analysis to define the strongest resources, capabilities, and core competencies the firm possess to input into its business strategy. The results from the analyses are applied to the vision and mission to be followed by the firms workforce. Once it is clear to everyone what the objectives are, the firm is ready to take action to achieve its goals of strategic competitiveness. However, to be successful a company must maintain a constant dynamic of the strategic process to deal with changing markets. The key is for the firm to continuously develop strategic inputs.
Competitive Advantage Competitive Advantage is when a firm has created a value that competitors cannot achieve or easily duplicate. This value can be in the form of lower prices, greater benefits and/or services that can justify costs. The value is measured by the products performance characteristics and qualities that influence the customer to purchase.
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