Class notes
Class notes Strategic Management Strategy and the Business Landscape, ISBN: 9781542852920
- Course
- Institution
- Book
Class notes Strategic Management Strategy and the Business Landscape, ISBN: 9781542852920
[Show more]
Connected book
Book Title:
Author(s):
- Edition:
- ISBN:
- Edition:
More summaries for
-
Class notes Strategic Management Strategy and the Business Landscape, ISBN: 9781542852920
-
Class notes Strategic Management Strategy and the Business Landscape, ISBN: 9781542852920
-
Class notes Strategic Management Strategy and the Business Landscape, ISBN: 9781542852920
Seller
Follow
nehaa12
Content preview
Competing on resourcesAs markets move faster and faster, managers complain that strategic planning is too static and too
slow. It explains how a company’s resources drive its performance in a dynamic competitive
environment. Hence the umbrella term academics use to describe this work: the resource based
view of the firm (RBV).
The RBV combines the internal analysis of phenomena within companies (a preoccupation of many
management gurus since the mid-1980s) with the external analysis of the industry and the
competitive environment (the central focus of earlier strategy approaches).
It derives its strength from its ability to explain in clear managerial terms why some competitors are
more profitable than others, how to put the idea of core competence into practice, and how to
develop diversification strategies that make sense.
RBV sees companies as different collection of physical intangible assets and capabilities.
No 2 companies are same becoz they don’t have same set of:
a. Experience
b. Acquired same assets and skills
c. Built on same organizational cultures.
These sets of assets and capabilities determine how efficiently and effectively a company
performs its functions.
Valuable resources can be in many forms:
1. physical: wire
2. intagibles:brand name and technology know-how
3. organizational capabilities
CA whatever may be the source ultimately can be attributed to the ownership of a valuable resource
that enables company to perform better and cheaper than the competitors.
What makes resource valuable?
1. Scarcity
2. Appropriability: Appropriability is the capacity of the firm to retain the added value it creates
for its own benefit. However, who benefits from this added value depends on the decisions
of the firm, the structure of the market in which it operates, and the sources of the added
value itself.
3. Demand
The dynamic interplay of 3 fundamental market forces determine the value of the resource
Resources cannot be evaluated alone but their value is determined in the interplay with market
forces.
A resource that is important in one industry or in particular time may fail to have same values in
other industry.
Andrews defined strategy as the match between what a company can do (organizational strengths
and weaknesses) within the universe of what it might do (environmental opportunities and threats).
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller nehaa12. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $8.62. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
73314 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now