TAILIEUCHUNG - Lecture Crafting and executing strategy: The quest for competitive advantage - Chapter 4

Chapter 4: Evaluating a company's resources and competitive position. The objectives of this chapter are to: Learn how to assess how well a company’s strategy is working, understand why a company’s resources and capabilities are central to its strategic approach and how to evaluate their potential for giving the company a competitive edge over rivals, discover how to assess the company’s strengths and weaknesses in light of market opportunities and external threats. | Analyzing a Company’s Resources and Competitive Position 4 Chapter Screen graphics created by: Jana F. Kuzmicki, . Troy State University-Florida and Western Region Chapter Roadmap Question 1: How Well Is the Company’s Present Strategy Working? Question 2: What Are the Company’s Resource Strengths and Weaknesses and Its External Opportunities and Threats? Question 3: Are the Company’s Prices and Costs Competitive? Question 4: Is the Company Competitively Stronger or Weaker than Key Rivals? Question 5: What Strategic Issues and Problems Merit Front-Burner Managerial Attention? Fig. : Identifying the Components of a Single-Business Company’s Strategy Q #1: How Well Is the Company’s Present Strategy Working? Identify competitive approach Low-cost leadership Differentiation Focus on a particular market niche Determine competitive scope Geographic market coverage Operating stages in industry’s production/distribution chain Examine recent strategic moves Identify functional strategies Key Issues Approaches to Assess How Well the Present Strategy Is Working Qualitative assessment – What is the strategy? Completeness Internal consistency Rationale Relevance Quantitative assessment – What are the results? Is company achieving its financial and strategic objectives? Is company an above-average industry performer? Key Indicators of How Well the Strategy Is Working Trend in sales and market share Acquiring and/or retaining customers Trend in profit margins Trend in net profits, ROI, and EVA Overall financial strength and credit ranking Efforts at continuous improvement activities Trend in stock price and stockholder value Image and reputation with customers Leadership role(s) – Technology, quality, innovation, e-commerce, etc. S W O T represents the first letter in S trengths W eaknesses O pportunities T hreats For a company’s strategy to be well-conceived, it must be Matched to its resource strengths and weaknesses Aimed at capturing its best market opportunities and

• Quản trị kinh doanh
• Crafting strategy
• Executing strategy
• Competitive advantage
• Company’s strategy
• Company’s resources
• Competitive assets
• Lecture Crafting and executing strategy
• Executing the strategy
• Strategy implementation process
• Good strategy execution
• Distinctive strategy
• Corporate strategy
• Strategic vision
• Company’s external environment
• Competitive position
• Competitive strategies