Learning Activity #1 The ultimate goal of effective strategic management is to a

Question

Learning Activity #1

The ultimate goal of effective strategic management is to achieve and maintain a competitive advantage (David, 2013). Over the past 7 weeks we’ve spent time understanding the fundamentals of strategic management: formulation, implementation and evaluation. As you think over the learnings of the past 7 weeks and the goal of achieving and maintaining a competitive advantage you must also think about effective decision making, which is critical to an organizations success.

In your opinion, what is the single major benefit of using a strategic management approach to decision making? There is really no right or wrong answer, however, please support and justify your answer using APA formatted references.

Explanation / Answer

Corporate executives face mounting pressure from their boards and from capital markets to add value. That pressure has had the greatest impact on corporate strategy. Great corporate strategies come in the first instance from strength in each side of the triangle: high-quality rather than pedestrian resources, strong market positions in attractive industries, and an efficient administrative organization. But true corporate advantage requires a tight fit at each angle as well. When a company's resources are critical to the success of its businesses, the result is competitive advantage.

Deploying key resources where they are important to the competitive advantage of individual businesses is at the heart of corporate strategy. Understanding which one fits a company's particular resources and businesses is critical to creating competitive corporate advantage. Most corporate advantages are realized in the enhanced performance of the business units. Corporations must determine if they are achieving it. If they are not, they are not creating real competitive advantage.

Competitive advantage in businesses can depend on one of its core technologies/ IT Infrastructure or efficient Manpower/ human resources/ Optimized Supply Chain Operations or Marketing- Sales team. When corporate strategy adheres to this logic, a company can create a meaningful competitive corporate advantage.

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