This second report focuses on Strategic Formulation analysis and includes the following sections. The first section will define several strategies that are used by many companies in order to conduct a Strategic advantage. The second section will analyze what strategies Lockheed Martin has achieved in their business environment. The third section will evaluate evidence from the analysis and determine a major problem Lockheed Martin is facing, as well as identifying a solution to that problem.
However, the two main things that exert the main influence over the twenty first century landscape are those of the ongoing technological revolution, and the increasing globalization. Technology is actually revolutionizing the manner in which companies conduct their business, by shortening, to a great extent, the very life cycle of the new products and services that are being launched daily.
In other words, the time that a product takes to travel from its conception to its delivery to the delivery point has become alarmingly short, and all the companies are trying to find the ways and means with which to obtain a sufficient return on their investments.
Management Professor Defines 21st Century Competitive Landscape According to Michael Hitt, Professor of management in a Texas University, several companies are in a quandary because of the fact that they do have to be continually innovative and also have to turn out new products continuously, while at the same time figuring out the best ways in which to get returns on their investment before another new product can take the other one's place.
A perfect example of this phenomenon is that of the computer microprocessor company Intel Corporation. Intel's products typically have a life of about eleven months before another new product has to be launched to take the older one's place. Therefore, if a company were to hope for any sort of return, then they must have a firm hold in the market, and also take full advantage of the increasing globalization of today.
Why must companies try to sell their products all around the world? This is because of the fact that today, the entire world is considered to be one vast marketplace, and when a company finds that it is not doing well in the domestic market, then it can definitely expand and sell to outside markets, thereby obtaining returns very quickly on their investments.
Management Professor Defines 21st Century Competitive Landscape Today, more and more businesses are therefore, forced to compete in an increasingly global environment which is more competitive than ever before.
This does not mean that the atmosphere is conducive to the development of the business; rather, the environment is totally chaotic and unorganized, because it is undergoing rapid change, and is therefore as a result, extremely complex and also unpredictable. Everywhere in the world, companies are realizing that if they were to survive and also to grow in this type of environment, then they must invest in innovative ideas and thinking, and the managers of the firms must be taught these particular thinking skills.
Those traditional sources of the so-called 'competitive edge' like for example, product and process technology, protected markets, and financial resources are no longer enough to provide the edge.
Organizational decline and the Impact of Environmental Challenges of the 21st century In short, in the twenty first century, business growth is difficult to sustain, and at the same time, decline is quick in coming.
This environment has come to be known as the 'new competitive landscape', and also as 'hyper competitive', and as 'globally competitive'. The four most important attributes that change the way in which business today is conducted are therefore, globalization, the rapid technological changes taking place everyday, hyper competition, and also outsourcing.
It can be stated therefore, that the basic and fundamental nature of competition has changed drastically, and today, companies have to do more to keep up with the changing trends, and also if they wanted a reasonable return on their investments. Organizational decline and the Impact of Environmental Challenges of the 21st century A Typical Resource-based model on average returns is exemplified by the real life Domino's Pizzas, a company that has been doing excellently for itself over the years, in this highly competitive market.
This is the model that they lay importance on: In other words, this company must formulate a strategy that another company is not developing at the same time; when this is achieved and then the company would be able to provide the customer with very definite benefits and advantages that the competitor will not be able to duplicate.
This strategy would result in 'above average returns', which in other words means that the company would be able to achieve returns in excess of what he expects to earn from any other investment with similar risks. Therefore, the Strategic Management process can be said to involve the entire gamut of commitments and decisions and actions in this process, and then the company would stay within the competition.
Strategic Management and Strategic Competitiveness The resource-based model of above average returns as stated by 'Business Coach' is as follows: The third step would be for the manager to take steps towards determining the competitive advantage that his own firm has over others, and whether or not his firm would be able to actually out perform the rivals'.
The next step would be to locate an industry that has the opportunities and capabilities that can be possibly exploited by his company, after which he would be able to select and formulate the strategic operation that he feels would be the best for the company to gain an above average returns for the company.
Finally, he can sit back and enjoy the fruits of his labor by seeing the superior returns that his hard work and effort would have gained him.
Resource-based theory The current view of business strategy is that of, as seen above, resource based theory, or in other words, resource-based view of a company.
This view is based on the idea of economic rentand also based on the assumption that a company is but a collection of capabilities. This view has an inherent advantage because of the fact that it is coherent and plays a role of integration in planning well ahead of its competitors.
In comparison to traditional models of strategy, like that of Michael Porter 's 'Five Model' strategy, the new resource-based perspective demonstrates the need for a close fit between the external market where the company operates, and its own internal capabilities.
The opinion is that a company's internal environment or the various resources and the capabilities within the firm, becomes more important to the determination of the strategic action to be taken, rather than the external environment where it works. In this method, the company's internal resources including its capabilities would be responsible for providing the manager with a basis for a successful strategy that would earn the firm an above average returns on its investment.Strategic competitiveness is a type a strategy that certain firm can plan to achieve their organizational goals even though there are a lot of competitors around them/5(8).
Management Essay on Strategic Management and Competitiveness In this assignment, you will decide on strategic management plans, a company’s strategic competitiveness, and . Competitive Profile Matrix (CPM) 4.
External Factor Evaluation (EFE) Matix 5. Strategic issues based on External Factors V.
Strategic Management And Strategic Competitiveness Words | 5 Pages. Strategic Management and Strategic Competitiveness The paper that I’m writing will help you to gain information on how Strategic Management and Strategic Competitiveness play hand and hand when dealing with a business. The business that I have choose to write about is Nike. Management and Strategic Competitiveness. May 19, No Comments Assignment 1: Strategic Management and Strategic CompetitivenessDue Week 2 and worth pointsChoose one (1) public corporation in an industry with which you are familiar. Essay on apple books in hindi research study paper justification examples essay word changer essay definition and example explanatory variable dreams essay conclusion n nelson mandela my favorite movies essay yoga my taste in music essay artists essay about report writing zoho.
Company Analysis 1. Strategic Management The twenty first century competitive landscape is influenced by a great many factors, all of which are equally important in the general scheme of things. Strategic management is a concept that assists management to focus on the key issues of the organisation that will help it develop a competitive advantage.
The concept of strategic management and the notion of competitive advantage are therefore inextricably linked. Strategic management is an important process in today’s organizations and requires a good devotion of time and money to make strategic decisions (Harrison and St.