1)In this course, I have learned that establishing a competitive edge in a market that results to an advantage Is guaranteed to improve the overall financial evaluation of the company. This position is welcomed by shareholders as it certainly means more financial benefits. Competitive advantage allows firms to operates better than their competition. Firms with this advantage are able to produce goods and services with a lower operating budget than other firms. These advantages may show up in the form of structuring of cost, quality of product, exposure of branding, customer service, efficient distribution network and protected intellectual property. In-order for a firm to establish some level of competitive edge over its competition, the establishing firm has to engage in extensive research by conducting customer preference surveys, seeking useful feedbacks on sales and marketing strategies, acquiring vital data about competitors selling points and products and adopting a trendy sales approach to specific seasonal products and services. The purpose of this approach is to identify certain aspects of the market that might be ripe for exploitation. The resulting analysis from these approaches has the potential to facilitate a sustainable competitive edge. However, strategic approach to achieving competitive advantage has proven to be the most effective approach to establishing an edge over the market. Furthermore, a differentiation approach strategy provides consumers with a relatively different variation of product and services. The variations provides products with superior quality and innovate capabilities. In addition, a focus competitive advantage strategy entails the targeting of specific segments of the market. Consumers in these segments markets require distinctive needs and welcomes services and product geared specifically towards them. This niche approach can be effective and results in a competitive advantage If utilized well. However, a differentiation focus is geared towards providing services and products to a niche market segment while cost focus requires operating as the least cost producer in a niche market place. All the mentioned above points are design to influence competitive advantage which will eventually result to improve shareholder value.
2)After taking this course I feel as though I’ve strengthened my ability to strategically plan in a management role. I have a better understanding of the strategic-management process. After completing numerous matrices I have better insight into how they can be important to an organization.I have also started a new job and some of the terms that we have learned such as disruptive industry have come into play. I work for a law firm/tech company now that is known for being in the top 5 companies to disrupt the law industry. Some of the most important elements for an organization to improve its competitive advantage would be focusing on sustainability, corporate culture, and customer service. I’ve learned from this our IFE and EFE matrices that we conducted along with the different strategies created for my CLC group’s company Disney. I feel more confident with strategic management after these seven weeks. I also feel more confident in my new role to engage in competitive advancements with the company. Thank you Professor McDonald for your feedback & teaching this course!
3)Southwest is a notorious airline company that demonstrates ethical behavior, social responsibility, and environmental sustainment. This positive behavior starts with their mission statement, where the company uses the term transparency to describe their commitment to treat customers honestly and with respect (David et al., 2020). Southwest operates with a triple bottom line approach of people, performance, and planet (Cision, 2021). They have a goal to achieve carbon neutral aircrafts to be sustainable for the environment by 2050. They are also electrifying ground service equipment with electric-powered vehicles and have invested more than $630 dollars in fuel efficiency initiatives since 2022 (Southwest, 2021).
How does the selected organization promote human flourishing?
Southwest promotes human flourishing by starting with their company culture and their employees. They try to motivate their employees to volunteer and be part of a meaningful purpose which isn’t just working for profits. They try to inspire their employees to be their authentic selves (Southwest, 2018). Employees are treated with the utmost respect and caring attitude that the company expects from them to show the customers.
What role does innovation and leadership play in strategic management?
Leadership is imperative to promote strategic planning and tools for innovation (Cho, 2021).Leadership is the ability to visualize, plan, lead, and utilize resources to execute strategies successfully. Ultimately, a strategy is nothing more than a commitment aimed at achieving a goal. With the power of innovation such as R&D it can lead to successful strategies. An innovation system allows for a corporate structure that dictates how the company handles problems, synthesizes ideas into a business concept and designs their products and services (Pisano, 2015).
How does this contribute to an organization’s ability to achieve and sustain competitive advantage? Provide an example and rationale.
Southwest’s consideration for the environment, customers, employees, and community make them more competitive than other airlines. Their business strategy is based on efficient operations and offering customers the lowest possible prices that also includes a deep focus on the customers’ experience (Brown, 2021). Their business strategy gives them a competitive advantage. Customers have more trust with Southwest which makes them a preferred airline over their competitors.