1 Need To Write The Discussions On Competitive Advantage Explain Us ✓ Solved

1. Need to write the discussions on competitive advantage · Explain (using your own words) what you think competitive advantage is · Explain why the purpose of strategy isn’t to increase profits · Explain whether or not you think it should be 2. Need to write the discussions on external and internal environments · Explain the relationship between a company’s external environment and its internal environment · Assess which one has a greater impact on company strategy · Share an example from personal experience or news media that supports your argument. For example: Consider a hike in gas prices. In an industry dependent on gas, severe increases in price cause them to make changes internally, supporting the argument for the external environment.

3. Need to write the discussions on competitive strategy · Successful companies tend to follow one of two strategies, Low-Cost Provider and Differentiation (or a hybrid of the two). In this discussion, you will consider whether one of these strategies have an edge over the other. · For your initial post, address the following issues. There are two basic strategies: Low-Cost Provider and Differentiation. Which one is more powerful?

Share an example from an actual company of the strategy you think is more powerful. 4. Need to write the discussions on international product strategy · Companies competing internationally must decide whether or not they need to change their product to meet the needs of their buyers. This, however, can be expensive. · For your initial post, explain which of the following options you think is more important: Change the product to sell more, or don’t change the product and keep costs low? 5.

Need to write the discussions on environmental responsibility · A company’s shareholders might have a hard time understanding that planting trees, or any green initiative, will lead to long-term profits. Environmental responsibility strategies have many far-reaching effects; they can lead to increased stock price, customer and employee retention, increased sales, and a number of positive outcomes. The connection between environmental responsibility strategies and these outcomes, however, may not be direct or obvious. Convincing shareholders, who often simply want a dividend, may be a difficult task. · For your initial post, explain how you would convince company shareholders that spending money on the environment, instead of paying dividends, will have a positive effect on the bottom line and improve future company prospects.

6. Need to write the discussions on corporate culture · A company’s corporate culture is one of the strongest tools managers have to implement strategy. But how does it work? Ultimately, strategic execution should be the sole purpose of every organizational activity. If you knew you could carefully craft a tool to guide employee behavior toward effective implementation of strategy, you would spend a great deal of effort in creating that tool. · For your initial post, explain some ways that corporate culture can have a positive influence on strategic implementation.

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Discussions on Competitive Advantage

What is Competitive Advantage?

Competitive advantage refers to the unique set of attributes or capabilities that allow a company to outperform its competitors in the market. It arises from the combination of various factors, including cost efficiency, quality of products or services, brand loyalty, and innovation. Essentially, a competitive advantage enables a company to deliver greater value to its customers compared to its rivals, translating to a stronger market position.
According to Porter (1985), competitive advantage is about creating more value for customers than competitors can. This can mean offering a product at a lower price than competitors, or providing additional value that justifies a higher price point. The core of competitive advantage lies not just in having superior resources but rather in how those resources are leveraged to create value (Barney, 1991).

Purpose of Strategy and Profitability

The purpose of a company's strategy extends beyond merely increasing profits. While profit generation is often an outcome of effective strategic implementation, the fundamental aim of strategy is to create sustainable competitive advantages that lead to long-term success (Mintzberg, 1994). Strategies guide companies in navigating market complexities, responding to consumer needs, and adapting to external pressures.
I concur that strategies should incorporate profitability as a key objective, but they should not be limited to it. Effective strategies also aim for market share growth, brand equity enhancement, and customer satisfaction—all of which indirectly lead to increased profits (Osterwalder & Pigneur, 2010).

The Relationship Between External and Internal Environments

A company’s external and internal environments are interrelated and significantly influence its strategy. The external environment encompasses market trends, competition, regulations, and consumer behavior, while the internal environment is defined by a company's resources, capabilities, and organizational culture. For example, changes in consumer preferences (external) can drive a firm to innovate or change its operational processes (internal).
In my assessment, the external environment generally exerts a greater influence on company strategy due to its dynamic nature. For instance, a significant hike in gas prices can prompt logistics companies to reassess their fuel-efficient practices, thereby necessitating changes in their operations and cost structures (Davis et al., 2013).

Competitive Strategy: Low-Cost vs. Differentiation

When considering competitive strategies, successful companies typically lean towards low-cost provision or differentiation. Arguably, the low-cost strategy holds a slight edge over differentiation because it allows firms to attract a larger customer base, especially in price-sensitive markets (Porter, 1985). Walmart exemplifies the low-cost strategy; its ability to offer lower prices across various consumer goods allows it to thrive in a highly competitive retail environment.
While differentiation can help a company carve out a niche market, the economies of scale often favor low-cost providers in the grand scheme of market dynamics. Notably, the effectiveness of a strategy ultimately depends on the market context and consumer preferences at that time.

International Product Strategy: Change or Maintain

When companies venture into international markets, the decision to alter a product to cater to local tastes can be contentious. In my view, adapting a product to meet local needs can yield far-reaching benefits despite potentially higher costs. For example, McDonald's evolves its menu to reflect local cultures and dietary preferences, boosting its appeal and sales in diverse markets (Friedman, 2016).
Conversely, standardizing products can reduce production costs, but this may sacrifice customer satisfaction in diverse markets. Therefore, striking a balance between change and maintaining low costs is crucial for companies striving for international success.

Environmental Responsibility and Shareholder Convincing

Communicating the importance of environmental responsibility to shareholders can be challenging, especially when immediate financial returns are prioritized. To effectively persuade them, I would emphasize the long-term benefits of investing in sustainable practices, such as improved brand reputation, customer loyalty, and operational efficiencies (Hart, 1997).
Research by Eccles et al. (2014) underscores that companies with robust sustainability practices often experience better financial performance. By framing environmental initiatives as strategic investments rather than costs, shareholders focused on short-term profits can be motivated to embrace a broader view that factors in sustainable growth.

Corporate Culture and Strategic Implementation

Corporate culture significantly influences the successful implementation of business strategies. A strong and positive corporate culture fosters alignment among employees around the company’s vision, encourages collaboration, and enhances employee engagement (Schein, 2010). As part of strategic execution, managers can harness corporate culture by instilling shared values and norms that encourage accountability and innovation.
For instance, companies such as Google leverage a culture of creativity and openness to fuel innovation. As a result, strategic objectives become not only attainable but also resonate deeply across all organizational levels—ensuring better alignment between goals and actions (Bock, 2015).

Conclusion

Competitive advantage is multifaceted and deeply connected to a company’s strategy, external and internal environments, strategic choices, and corporate culture. As firms navigate complex market dynamics, understanding these relationships allows for more informed decision-making and ultimately leads to sustainable success. Cultivating a culture of innovation and environmental responsibility, while balancing internal capabilities with external pressures, can pave the way for companies to thrive.

References

1. Barney, J. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, 17(1), 99-120.
2. Bock, L. (2015). Work Rules!: Insights from Inside Google That Will Transform How You Live and Lead. Twelve.
3. Davis, S., Dieck, M., & Henkels, M. (2013). The Impact of Fuel Price Increases on Transportation and Logistics Companies: A Study. Business Logistics, 34(2), 215-230.
4. Eccles, R. G., Ioannou, I., & Serafeim, G. (2014). The Impact of Corporate Sustainability on Organizational Processes and Performance. Management Science, 60(11), 2835-2857.
5. Friedman, D. (2016). The Economics of Fast Food: Strategies for Successful Globalization. New York: Routledge.
6. Hart, S. L. (1997). Beyond Greening: Strategies for a Sustainable World. Harvard Business Review, 75(1), 66-76.
7. Mintzberg, H. (1994). The Rise and Fall of Strategic Planning. Harvard Business Review, 72(1), 107-114.
8. Osterwalder, A., & Pigneur, Y. (2010). Business Model Generatin. Wiley.
9. Porter, M. E. (1985). Competitive Advantage: Creating and Sustaining Superior Performance. Free Press.
10. Schein, E. H. (2010). Organizational Culture and Leadership. Jossey-Bass.