Definition Chapter 8

attribute or combination of attributes that allows an organization to outperform its rivals.

An attribute that is difficult for competitors to imitate

The process of formulating and implementing strategies that create competitive advantage and advance an organization’s mission and objectives

assessing existing strategies, organizations, and environments to develop new strategies and strategic plans capable of delivering future competitive advantage.

– acting upon strategies successfully to achieve the desired results.

• top management directs an organization as a whole toward sustainable competitive advantage.

• top- and mid-level management set the direction for a single business unit.

• middle- and low-level management guide the use of resources to implement business strategy.

• reduce the scale of operations in order to gain efficiency and improve performance.

Maintain the present course of action without major operating changes

• strategic alliances • outsourcing alliances

• cost and quality • knowledge and timing • barriers to entry • financial resources

• accountability • adaptability • dependability • responsibility • visibility

Data collection and analysis should happen early in the strategic decision-making process. Managers must collect as much information as possible, and then make a timely decision based on the information at hand

Utilize past action—including the actions of predecessors or peer managers—to help formulate new strategies