Strategic Management Perspective

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STRATEGIC MANAGEMENT PERSPECTIVE

STRATEGIC MANAGEMENT PERSPECTIVE

LECTURER LEE LAI KEONG

Assignment by Gunasekar s/o Murugaiah UH MBA INTAKE 4

ASSIGNMENT BY: GUNASEKAR S/O MURUGAIAH

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STRATEGIC MANAGEMENT PERSPECTIVE TABLE OF CONTENTS Page Number Abstract CHAPTER I – LITERATURE REVIEW 1.0 Introduction 1.1 Core Competence 1.2 Competitive Advantage 1.3 Resource Based Approach CHAPTER II – INDUSTRY ANALYSIS 2.0 Industry Background 2.1 Income Statement 2.2 SWOT Analysis 2.3 Core Competence of AMSGB 2.4 Value Chain Analysis 2.5 Capability Building 2.6 McKinsey 7-S 2.7 Constraints in the process of Capability Building CHAPTER III 3.0 Conclusion Reference 22 13 13 14 15 15 – 19 19 – 20 20 – 21 22 4 4–6 7 – 10 11 – 12 3

ASSIGNMENT BY: GUNASEKAR S/O MURUGAIAH

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STRATEGIC MANAGEMENT PERSPECTIVE ABSTRACT “Strategic management is an ongoing process that evaluates and controls the business and the industries in which the company is involved; assesses its competitors and sets goals and strategies to meet all existing and potential competitors; and then reassesses each strategy annually or quarterly to determine how it has been implemented and whether it has succeeded or needs replacement by a new strategy to meet changed circumstances, new technology, new competitors, a new economic environment., or a new social, financial, or political environment.” (Lamb, 1984: ix)

In other words strategic management is what managers do to develop the organization‟s strategies. These are decisions and actions that determine the long-run performance of an organization. During this process core competency of a company is built to out strategize rivals.

ASSIGNMENT BY: GUNASEKAR S/O MURUGAIAH

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STRATEGIC MANAGEMENT PERSPECTIVE CHAPTER I LITERATURE REVIEW 1.0 Introduction Strategy is defined as "A course of action together with specification of resources to achieve pre-determined goals or objectives." Strategy is about long-term goals and objectives of the business; its inherent core values and expectation of stakeholders; A strategy determines organization‟s survival in the short term and its direction in the long term. Studies have shown that for a company to yield a long term advantage it needs to build on its core competencies which will then allow a sustainable competitive advantage.

1.1 Core Competency In current global business environment companies need to learn to manage tomorrow's opportunities as competently as they manage today's businesses. The main ideas about Core Competencies were developed by C K Prahalad and G Hamel through a series of articles in the Harvard Business Review followed by a best-selling book - Competing for the Future. Their central idea is that over time companies may develop key areas of expertise which are distinctive to that company and critical to the company's long term growth.

Researchers and practitioners have recognized the importance of establishing strength around core competencies in their searching for a long sustaining means of winning

ASSIGNMENT BY: GUNASEKAR S/O MURUGAIAH

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STRATEGIC MANAGEMENT PERSPECTIVE strategies (Conrad 1963; Prahalad and Hamel 1990; Stalk 1992; Teece, et al. 1997; Harreld, et al. 2007).

The term competency is often used to describe the knowledge to be able perform at a particular task. According to Norman (1985), competency is more than knowledge. It includes the understanding of knowledge, technology, and communication skills, and the ability to problem solve through the use of judgment. Competencies are used to create unique standards within disciplines and specialties. This encompasses educators, learners, and managers. According to Verma (2006) “competencies create an environment that fosters empowerment, accountability, and performance evaluation which is consistent and equitable. The acquisition of core competencies can be through talent, experience, training or resources. A core competence is a combination of...
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