MBA695 Unit 1 Week 1 Discussion 1 & 2

Introduction

At the heart of strategic management is the question: “How and why do some firms outperform others?” The challenge to managers is to develop and implement strategies that will provide competitive advantages that will be sustainable over time.

Strategic management entails three on-going processes: analysis, decisions, and actions. Managers must analyze the internal and external environment as well as their hierarchy of goals in order to formulate and implement strategies.

Strategic Management draws on Michael Porter’s work to make the important distinction between strategy and operational effectiveness. Managers must create advantages that are sustainable over a period of time, instead of merely temporary. That is: How can we create competitive advantages in the marketplace that are not only unique and valuable but also difficult for competitors to copy or substitute?

Unit Learning Outcomes

At the conclusion of the unit, the learner will be able to:

1. Examine the definition of strategic management and identify its key attributes (CLO 1, 2)

2. Evaluate the strategic management process as it relates to strategy formulation and goal setting (CLO 1, 2)

3. Compare and contrast various viewpoints on maintaining a sustainable competitive advantage (importance, methods, etc). (CLO 3)

Readings and Materials

Textbooks:

Dyer, Godfrey, Jensen & Bryce: Chapter 1: What is Business Strategy? Horwath: Introduction (pp. 1 – 22) and Competitive Advantage (pp. 84-86).