Internal Resources
Any organization’s effectiveness relies on the internal attributes that are within its domain. The management could choose to analyze these components in the design and development of strategic objectives. Hamel and Prahalad (1990, p.83) defined suggested, value chain that identifies the supporting activities such as employee skills, technology and infrastructure as well as the prime activities can create profit. According to Porter and Kramer (2011, p. 64), successful situation analysis is tracked by the creation of long-term goals, which designate targets that could increase the company’s competitive position. The extended contention that results from all five forces describes an industry’s structure and outlines the nature of competitive dealings within it.
They act as guidelines for specific strategy in organizations. The strategies are chosen at three distinct levels:
1. Business level strategy. Used when strategic business units divisions or small and medium enterprises select strategies for a single product offering sold in only one market
2. Corporate level strategy. Executives choose which merchandises to sell, which market to enter and whether to acquire a competitor or merge with it. They select between integration, intensive, diversification and defensive strategies.
3. Global/International strategy. It concerns new markets to develop and how to enter them.
Even the best strategic campaigns must be executed, and only well-performed strategies enable sustainable competitive advantage for a firm. According to Porter (2008), there are many ways in which addressing societal concerns can yield the desired output benefit a firm. Contemplate, for example, what ensues when a firm invests in a wellness program. People benefit since employees and their families become healthier, curtailing employee absences and lost productivity.
On the other hand, according to Barney (1991, p.103), the communication in strategy implementation is indispensable as novel strategies must get backing from all stakeholders for effective implementation. These include:
• Setting yearly objectives
• Revising procedures to meet the purposes
• Allotting resources to strategically significant areas
• Altering organizational structure to attain new strategy
• Management of resistance to change.
• Introducing innovative reward schemes for performance outcomes.
- Barney, J 1991, ‘Firm resources and sustained competitive advantage,’ Journal of Management, 17(1), pp.99-120.
- Hamel, G. and Prahalad, C.K 1990, ‘The core competence of the corporation,’ Harvard Business Review, 68(3), pp.79-91.
- Porter, M.E. and Kramer, M.R. 2011, ‘Creating shared value,’ Harvard Business Review, 89(1/2), pp.62-77.
- Porter, M., 2008, The five competitive forces that shape strategy.
