AGUANTA, PRINCESS NICOLE ALLYSON

MA332

Module 1 Assignment

1. What are strategic competitiveness, strategy, competitive advantage, above-average

returns, and the strategic management process?
 These terms are interconnected. To summarize, strategic competitiveness,
above-average returns, and competitive advantage are achieved because of
effective strategies and strategic management proccesses.

Strategic competitiveness and competitive advantage both relate to a firm’s

position within the industry in terms of competition. Above-average returns are
earnings in excess of what was expected at the same level of risk. Lastly,
strategy and strategic management process are decisions, plans, and actions a
firm has to achieve competitive advantage.

2. What are the characteristics of the current competitive landscape? What two factors
are the primary drivers of this landscape?
 The current competitive landscape, in simple words, is dangerously competitive
and fast-paced in terms of changes, risks, and competition. The two primary
landscapes of this landscape are: global economy and technology. The ever-
changing technology helps companies improve their operations and strategies,
while the behavior, skills, movement, and trends of society all across the globe
affects a firm’s competitiveness.

3. According to the I/O model, what should a firm do to earn above-average returns?

 According to the model, a firm must dominate its external environment. This
means that it can effectively use the external factors affecting it to its advantage.
For example, study the external environment well so it could identify an attractive
market and make the right strategies.

4. What does the resource-based model suggest a firm should do to earn above-
average returns?
 The resource-based model, as opposed to the I/O model, focuses on its internal
capabilities. Based on this, a company must thoroughly research its resources,
seek out an appealing market, and devise appropriate strategies for effectively
utilizing its resources.

5. What are vision and mission? What is their value for the strategic management
process?
 The vision and mission statements clearly lay out the firm's ultimate goals and a
picture of "where it wants to be" after some point in time, as well as how such
goals will be achieved. First and foremost, strategies exist to achieve specific
goals. Because strategies will be based on what the firm wants to achieve, vision
and mission are extremely valuable for the strategic management process.
6. What are stakeholders? How do the three primary stakeholder groups influence
organizations?
 Stakeholders are the parties who are revelant to the firm’s successes and
performance. It goes both ways – stakeholders are affected by and affect the
firm’s outcomes. The three stakeholder groups are: capital market stakeholders,
product market stakeholders, and organizational stakeholders. These influence
performance outcomes, pricings, internal controls respectively.

7. How would you describe the work of strategic leaders?

 Strategic leaders are the people who literally turn words into actions. They lead
other people within the firm, utilize resources, and make decisions in order to
achieve the firm’s vision, mission, and goals.

8. What are the elements of the strategic management process? How are they
interrelated?
 The elements of the strategic management process are: strategic analysis,
strategic choice, and stategic implementation. In the first step, the internal and
external environment are analyzed so the risks, opportunities, threats, strengths,
and weaknesses are identified. With this knowledge, a foundation is made so
that strategic choices are formulated and from these choices, the best possible
course of action can be implemented and put into action.

References
Key Elements of Strategic Management. (2017, November 2). MBA Knowledge Base.
https://www.mbaknol.com/strategic-management/key-elements-of-the-strategic-management-
process/