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Organization strategy

Sustainable competitive advantage: Resources are resources, skills, employee time, information, and knowledge that the organization controls.

The company makes whit sources value for their customers. Value needs to be higher than from competitors so the company can say they have competition advances. To have advanced resources that can build higher value than competitors resources have at least four basics: resources must be valuable, rare, irreplaceable, and such that they cannot be perfectly copied.

  • Valuable resources: can give higher efficiency and effectiveness.

  • Rare resources: These are resources that are not available to most competitors, such resources maintain a competitive advantage.

  • Resources that cannot be copied: These are resources that are impossible to imitate, rare, and too hard to copy.

  • Irreplaceable: That mean others resources cannot give replaceament and competition advantages.

When its time to change strategic strategy to hold maintain a competitive advantage. When company make actions that are not following plans they have strategic dissonance.

Conservative strategy of avoiding risk, with the aim of protecting an existing competitive advantage.

Aggressive strategy of taking risk with the aim of expanding or creating a sustainable competitive advantage.

 

Corporate strategy gives us answers that help us determine what business we are or should be in.

Portfolio strategy: Portfolio strategy provides insight into the risks and differences of investing in diversification across different activities and product manufacturing processes. When investitors know how company work whit theres portfolio they have better guidience witch company they will buy or sell. Managers will buy company that have good usage of portfolio and sell company that have bad usage of portfolion.

If a company’s business processes work like competing on more company work with similar business processes, that means they have a bigger chance to stay in business and will not fall.

If investitors add in theres portfolio new business whit good business process they have a greater chance of reducing the risk of unrelated diversification.

Long-term risk can be reduced whit investing in businesses that have smaller growth in businesses that have bigger growth.

Mihael

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Mihael

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