A Firms Superior Performance - 1544 Words

A firm’s superior performance is contingent upon a sustainable competitive strategy and a firm’s strategy refers to ‘a set of actions that its manager takes to outperform its competitors and achieve superior profitability’ (Thompson, Peteraf, Gamble, Strickland, 2016, p.3). A strategy becomes sustainable when it produces enduring success that can support the company’s consistent growth. The designing of a strategy entails the understanding the company’s present situation which are comprised of two distinct facets: external environment and internal environment (Thompson et al., 2016). It is generally accepted that the performance of a company is accelerated when the strategy encompasses the alignment of both external and internal environments of a company (Kaplan Norton, 2008; Maier Pop, 2012). In spite of this consensus, there is a longstanding debate regarding whether external or internal environment has greater influence on the companyâ⠂¬â„¢s performance (Wit, 2010). For some logical perspectives, it is favored that a firm’s internal environment has greater influence on the firm’s performance than external environment. In alignment with the argument, pertinent strategic concepts and theories are analyzed along with the example of a company, Toyota Motor Corporation. This argumentative essay flows starting with a brief overview of Toyota Motor Corporation and then the arguments along with the concepts of resource and capability analysis, SWOT analysis and value chainShow MoreRelatedHuman Resource Management At The Management Field849 Words   |  4 Pages(HRM) to improve firm’s performance and underpin its strategy. While there is evidence that HRM practices can improve organizational performance, a key issue is understanding if such improvement qualifies as competitive advantage or merely achieves competitive parity. Several authors agree that people are sustainable source of competitive advantage [Pfeffer, 1995]. This statement triggers several questions: do people generate competitive advantage by delivering superior performance, because theyRead MoreBusiness Analysis : Porsche Automotive Group1633 Words   |  7 Pagescannot. This provides them with the opportunity to produce a product for superior in just about every way, given the proper application of effort and resources. The final issue to address is the possibility of threats to the firm. As previously alluded to earlier, the greatest threat to the future success of Porsche Automotive Group is the global economy and the looming presence of competition. This is primarily due to the firm’s specialization within the market of luxury vehicles. It has been plainRead MoreResources Underlie Comeptencies, Whereas Competencies Build Resources1015 Words   |  5 Pagesresources’ Discuss this statement and explain under what conditions both resources and capabilities can create a competitive advantage for a company Introduction This essay will discuss how resources and competences are linked with regards to a firm’s performance and under what conditions they can be fully utilized to create a competitive advantage for the company in question. Main Generally it can be found that in a particular industry some firms will out- perform other firms usually to do withRead MoreSwot Analysis : Cross Border Business1649 Words   |  7 Pagesmight hire top executives who have international-business experience. Moreover, they argue that managerial abilities might be essential in enabling firm its internationalisation process (ibid). Due to the above-mentioned literature we argue that the firm’s global strategic decisions are conceptualised by well-experienced executives. Therefore, the degree of globalisation of MNEs could be influenced by management s perspectives, experiences as well as educational backgrounds. Second, language is becomingRead MoreFive Generic Competitive Strategies1506 Words   |  7 Pagesoffering from the offerings of rivals. 4. Recognize the attributes of a best-cost provider strategy and the way in which some firms use a hybrid strategy to go about building a competitive advantage and delivering superior value to customers. 5–2 Why Do Strategies Differ? Is the firm’s market target broad or narrow? Key factors that distinguish one strategy from another Is the competitive advantage pursued linked to low costs or product differentiation? 5–3 THE FIVE GENERIC COMPETITIVE STRATEGIESRead Moreswot analysis1275 Words   |  6 Pagesexpanding closed different OS ecosystem 3. Decreasing market 2. Apple is a leading share innovator in mobile 4. Patent infringements device technology 5. Further changes in 3. Strong financial management performance 6. Defects of new ($10,000,000,000 products cash, gross profit 7. Long-term gross margin 43.9% and no debt) margin decline Strengths 1. Customer loyalty combined with expanding closed ecosystem. While at firstRead MoreBenefits of Strategic Management1255 Words   |  6 Pagesgoal of much of business strategy is to achieve a sustainable competitive advantage. Getting and keeping it is what managing strategically is all about. It ¡Ã‚ ¯s tough to do, and getting tougher.1 There are 2 major views of alternative model of superior returns. Industrial organization (I/O) view and resource-based view. The industrial organization view focuses on the structural forces within an industry, the competitive environment of firms and how these influence competitive advantage. TheRead MorePorter s Value Chain Of The Petroleum Sector1338 Words   |  6 Pagesstems from the many discrete activities a firm performs in designing, producing, marketing, delivering and supporting its product. Each of these activities can contribute to a firm’s relative cost position and create a basis for differentiation.† (Michael Porter Competitive Advantage: Creating and Sustaining Superior Performance) Porter suggest, that it is the activities within an organization that add value to the services and products that a company produces. Any company that wants to improve itsRead MoreStudy on a Companys Financial Ratios1233 Words   |  5 Pages1. Financial ratios are used to help analyze the companys financial statements. For a small company that is not publicly traded, the most important use of ratios is to compare current performance against past performance. Ratios cover a number of performance metrics that can help a business to benchmark performance against publicly traded companies as well, provided that the business has put together its internal statements according to GAAP, making them compatible with the statements of publicly-tradedRead MoreSituation Analysis in Marketing Plan Essay1585 Words   |  7 Pagesthe competition, and the corporation. (Jain, 2004, p25) Jain (2004) explained the role of situation analysis is to (1) make a clear market definition; (2) make a good match between corporate strengths and the needs of the market; and (3) perform superior to the competitions in the key success factors o f the business. Based on the three Cs, situation analysis indicates three decisions: where, how, and when to compete. Thus, without the reflection on the changing environment and the developing business