SGMT 3000 Chapter Notes - Chapter 3: Longrun, Organizational Learning, Reinforcement

• School: York University
• Department: Strategic Management
• Course: SGMT 3000
• Professor: T B A

Document Summary

Sustained competitive advantage: when a company is able to maintain above-average profitability for a number of years; the primary goal of strategy; results in superior profitability and profit growth. Step one: managers recognize processes used by the company to create value for customers and create profit for the firm; also understand role of resources, capabilities, distinctive competencies in this process. Step two: managers recognize the importance of superior efficiency, innovation, quality and customer responsiveness; see how the four come together to create value and generate profits. Step three: managers must analyze sources of company"s competitive advantage; determine where their profitability comes from; find opportunities for improvement; find strengths that boost profitability, weaknesses that lower profitability. Chapter 3 internal analysis: distinctive competencies, competitive advantage & profitability. Sustained competitive advantage: high quality; innovation; customer responsivity; efficiency. Internal analysis: identifying the strengths and weaknesses of a company; allows managers to set strategies and business models when analyzed alongside the external analysis.