‘Strategy is the outcome of a formal strategic planning process from top management. Therefore, it has limited value in providing the organisation with a competitive advantage.’
Strategy can be described as a set of related actions that mangers take to increase their company’s performance (Hill & Jones, 2007). A company’s strategy in undertaken by top management to improve the company’s efficiency and effectiveness to gain a competitive advantage over other companies in the same competitive field. Therefore a company’s strategic planning process can assist them in gaining a competitive advantage. Thompson, Strickland & Gamble (n.a) explained ‘a company’s strategy is managements game plan for growing the business, staking out a market position, attracting and pleasing customers, competing successfully, conducting operations and achieving targeted objectives”. The following will describe how a company’s business strategy can provide their organisation with a competitive advantage over their competitors. The five steps of the strategy making process will be outlined, External analysis, Internal analysis and Functional level strategy will be covered in more specific detail below to argue that a company’s strategic planning process can effect and in turn provided the business with a high competitive advantage.
Mintzberg (n.a), described company’s strategy’s as a consciously intended course of action, a guideline or set of guidelines to deal with a situation but he also informs the reader just like a plan, a strategy can be also a ploy too, really just a specific "maneuver" intended to outwit an opponent or competitor. To have competitive advantage it means to overcome the competitive forces in its industry (Dess, Lumpkin & Eisner,2010). Many writers have identified that strategy is the outcome of a formal planning process and that top management plays the most important role in this process. The formal strategic planning process has been known to have five main steps; the first step in a company’s strategy making process should be to select a corporate vision, mission and values that they desire for the organisation. Top managers and
Mintzberg (n.a), described company’s strategy’s as a consciously intended course of action, a guideline or set of guidelines to deal with a situation but he also informs the reader just like a plan, a strategy can be also a ploy too, really just a specific "maneuver" intended to outwit an opponent or competitor. To have competitive advantage it means to overcome the competitive forces in its industry (Dess, Lumpkin & Eisner,2010). Many writers have identified that strategy is the outcome of a formal planning process and that top management plays the most important role in this process. The formal strategic planning process has been known to have five main steps; the first step in a company’s strategy making process should be to select a corporate vision, mission and values that they desire for the organisation. Top managers and