CBME 2 (Sep.

08, 2020)

 Competitive advantage – sets how good a business is in operations

o Anything that the firm does especially well as compared to rival firms

o Something that you alone has

o Up-to-date facilities/equipment is an example
 With updated equipment, you can perform more things vs.
rival firms, perform extra functions, illicit better results
o Creative human resources is another example
 E.g. business that sells real estate. If employee is creative
in advertising/marketing, then he can engage more
customers.
o Having competitive advantage doesn’t last long.
 Reason is because some companies can’t keep up over
time and rivals undermine the advantages of their
opponents (e.g. scouting/recon against rivals)
 Continuously adapt to changes in external trends and events
o e.g. milk tea industry (Chowking and McDo has milk tea when
they don’t usually sell them in the past; only milk tea shops sell
them)
 Effectively formulate, implement, and evaluate strategies
o There should be constant evaluation of strategies
o Benchmarking not an undermining of competitive advantage
because there is a written consent for a firm to conduct
benchmarking.
 o Benchmarking not undermining of competitive advantage
because we should focus on the scope of the operations of the
business.
 Strategists/Strategic Managers
o Individuals with responsibility over the success and failure of a
business
o Can be the Chairman of the Board, President, the owner, the
manager, the dean, or Chancellor of a college/university
o If you are a strategist, you are also the Chief Learning Officer
 Chief Learning Officer – they are the persons who are
more adaptive to change
o Gather, analyze, and organize info
 Through the help of decision support systems and based
on results
 In large organizations, they have R&D Department, which
has the function of coming up the information for the
strategist in favor of the organization
 Research – data storytellers, because through their
presentations, that the strategists can decide on a specific
matter
o Track industry and competitive trends
 Business analytics – purpose is to rely on existing
information about business/clients, then you will elicit
patterns by means of maps, graphs from the data that you
have taken from the existing information (information is
just superficial). Example is stocks trading.
o They need also to stop emerging opportunities

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Vision and Mission Statements
 Enduring statement of purpose that distinguish one business from
other similar firm
 VMS is actually the very foundation of the existence of a business
 The development of VMS is the first step of Strategic Management
 Vision Statement – what do we want to become?
 Mission Statement – what is our business? Why are we here in the
first place?
 VMS are constant reminders for the employees on why the business
exists

External Opportunities and Threats

 Economic, social, cultural, demographic, environmental, political,
legal, governmental, technological, and competitive trends and events
that could signify benefit or harm in the organization in the future
 Examples:
o Consumers are expecting green operations and products
(consumers are becoming more aware of the importance of
environmental conservation)
o Marketing is moving rapidly to internet
o Political unrest
o Natural catastrophe