BUSINESS ADMINISTRATION
STRATEGIC MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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to produce long term plans
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to replace strategic planning
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to gain a sustainable competitive advantage over rivals
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to formalize the strategy of the organization
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Detailed explanation-1: -Strategic management provides overall direction by developing plans and policies designed to achieve objectives and then allocating resources to implement the plans. Ultimately, strategic management is for organisations to gain a competitive edge over their competitors.
Detailed explanation-2: -Strategic management sets a direction for the organization and its employees. Unlike once-and-done strategic plans, effective strategic management continuously plans, monitors and tests an organization’s activities, resulting in greater operational efficiency, market share and profitability.
Detailed explanation-3: -Differentiation In a differentiation strategy a firm seeks to be unique in its industry along some dimensions that are widely valued by buyers. It selects one or more attributes that many buyers in an industry perceive as important, and uniquely positions itself to meet those needs.
Detailed explanation-4: -A competitive advantage is anything that allows a business to outperform other businesses in the same industry or sector (its competitors). A sustainable competitive advantage is one that lasts in the longer term.
Detailed explanation-5: -What are the Sources of Sustainable Competitive Advantage? The sustainable competitive advantage sources for any company include Brand Loyalty, Innovation, Proprietary Information Scale, Intellectual Property, Innovation, Network-effect.