chapter 4: EVALUATING A COMPANY’S RESOURCES, CAPABILITIES, AND COMPETITIVENESS

Hye readers! Are you waiting for my next entry? hehe. In this entry I will share to you about EVALUATING A COMPANY’S RESOURCES, CAPABILITIES, AND COMPETITIVENESS. In this chapter, we can Learn how to assess how well a company’s strategy is working. We can also 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.

QUESTION 1: HOW WELL IS THE FIRM’S PRESENT STRATEGY WORKING?

  Best indicators of a well-conceived,
well-executed strategy:

●The firm is achieving its stated financial and strategic objectives.

●The firm is an above-average industry performer.

QUESTION 2: WHAT ARE THE FIRM’S COMPETITIVELY IMPORTANT RESOURCES AND CAPABILITIES?

♦A resource is a competitive asset that is owned or controlled by a firm

♦A capability or competence is the capacity of a firm to perform and internal activity competently through deployment of a firm’s resources.

♦A firm’s resources and capabilities represent its competitive assets and are big determinants of its competitiveness and ability
to succeed in the marketplace.

QUESTION 3: IS THE COMPANY ABLE TO SEIZE MARKET OPPORTUNITIES AND NULLIFY EXTERNAL THREATS?

For this part, we can determine it by using SWOT ANALYSIS. Why? Here is the reasons why:

●Is a powerful tool for sizing up a firm’s:

vInternal strengths (the basis for strategy)

vInternal weaknesses (deficient capabilities)

vMarket opportunities (strategic objectives)

vExternal threats (strategic defenses)

That's all i can share to you about this chapter. Hope you enjoy!

chapter 3: EVALUATING A COMPANY’S EXTERNAL ENVIRONMENT

This entry will show you about EVALUATING A COMPANY’S EXTERNAL ENVIRONMENT. This topic describes about the PESTEL and the Porter's Five - Forces .

What is PESTEL? What is Porter's Five - Forces? Read further and i'll show you my dear ;)

The macro-environment encompasses the broad environmental context in which a company’s industry is situated that includes strategically relevant components over which the firm has no direct control.

 PESTEL analysis focuses on the six principal components of strategic significance in the macro-environment:

PESTEL

Porter's Five - Forces

USING THE FIVE-FORCES MODEL OF COMPETITION

step 1: For each of the five forces, identify the different parties involved, and the specific factors that bring about competitive pressures.

step 2: Evaluate how strong the pressures stemming from each of the five forces are (strong, moderate, or weak).

step 3: Determine whether the collective strength of all five competitive forces is conducive to earning attractive profits in the industry.

Thus, now i can see how to evaluate a company's external environment. I'm pretty sure that you also can understand it. I can feel that this subject started to attract me. Many interesting things i learnt from it. Okay i feel sleepy right now. See you soon. goodnight love!

chapter 2: THE BUSINESS MISSION AND VISION

WHAT IS YOUR MISSION AND VISION? 

 A vision statement should answer the basic question, “What do we want to become?”. The vision statement should be short, preferably one sentence, and as many managers as possible should have input into developing the statement.

Mission statement 

9a declaration of an organization’s “reason for being.”

9answers the pivotal question “What is our business?”

9essential for effectively establishing objectives and formulating strategies.

9reveals what an organization wants to be and whom it wants to serve

9Also called a creed statement, a statement of purpose, a statement of philosophy, a statement of beliefs, and a statement of business principles

Shared vision creates a commonality of interests that can lift workers out of the monotony of daily work and put them into a new world of opportunity and challenge.

Mission Statement Components:

1. Customers
2. Products or services
3. Markets
4. Technology
5. Concern for survival, growth, and profitability
6. Philosophy
7. Self-concept
8. Concern for public image
9. Concern for employees

After finished this chapter, we may know what is our mission and vision in life. Hope you enjoy reading this entry. Till then. may your life full of happiness ;)

chapter 1: THE NATURE OF STRATEGIC MANAGEMENT

Hye readers! this is my first entry. So in this entry i'm gonna share to all of you about what is strategic management. Have you ever heard about it? First thing first, we must know what is the definition of strategic management.

vStrategic management

9the art and science of formulating, implementing, and evaluating cross-functional decisions that enable an organization to achieve its objectives.

Sometimes the term strategic management is used to refer to strategy formulation, implementation, and evaluation, with strategic planning referring only to strategy formulation.

Strategy formulation 9includes developing a vision and mission, identifying an organization’s external opportunities and threats, determining internal strengths and weaknesses, establishing long-term objectives, generating alternative strategies, and choosing particular strategies to pursue.

Strategy implementation 9requires a firm to establish annual objectives, devise policies, motivate employees, and allocate resources so that formulated strategies can be executed. often called the action stage.

Strategy evaluation9reviewing external and internal factors that are the bases for current strategies, measuring performance, and taking corrective actions.

That all from chapter 1. Stay tuned ;)

FIRST CLASS

ASSALAMUALAIKUM ;)

Hye readers. This is my first week entering strategic management lecture. Can you imagine what we do in first week. The picture above describe everything. Miss Ummi who is my lecturer for this subject asked the hall to build a tower using old newspaper in 10 minutes. 10 minutes ended. Miss Ummi asked all of the groups to place their tower in front of the class and she'll judge. 

What we can take from the activity was a good organization comes from strong cooperation. It shows the magic of ukhuwwah among the workers. Till then. See you soon!