THE STRATEGIC MANAGEMENT PERSPECTIVE
Note that a thorough analysis of a competitor's history and the backgrounds of its managers and advisers can yield insight into its goals as well as its assumptions. current Strategy The
current strategy of each competitor, whether explicit or implicit, must be understood. Essentially. a firm must determine how the competitor is currently competing. The focus, therefore, is on the competitor's key operating policies in each functional area and how it seeks to interrelate the functions,
Capabilities The goals, assumptions. and current strategy of a competitor influence the likelihood. timing, nature, and intensity of its reactions. The competitor's ability to initiate or react to strategic moves and deal with environmental events is based on its strengths and weaknesses. Firms should examine the competitor's core capabilities its strengths and weaknesses 13 in each of the following functional areas:
- products
- dealer / distribution system
- marketing and selling
- Operations / manufacturing
- research and engineering
- overall costs
- financial strength
- organization
- general managerial ability
- corporate portfolio
- human resources
- relationship with key publics for example. government)
In addition to the above factors, the consistency of the competitor goals and strategy should also be examined. First, internal consisteney exists when goals are mutually achievable, when key operating policies address the goals. and when goals and policies reinforce each other. Second environmental fit exists when the goals and policies exploit industry op. portunities, deal with threats, and respond to broader societal concerns. Third, resource fit occurs when the goals and policies match the resources available to the firm. Fourth. communication and implementation can occur successfully when the goals are understood by the key implementers, there is sufficient congruence between goals and policies and the values of the
THE STRATEGIC MANAGEMENT PERSPECTIVE
Note that a thorough analysis of a competitor's history and the backgrounds of its managers and advisers can yield insight into its goals as well as its assumptions. current Strategy The
current strategy of each competitor, whether explicit or implicit, must be understood. Essentially. a firm must determine how the competitor is currently competing. The focus, therefore, is on the competitor's key operating policies in each functional area and how it seeks to interrelate the functions,
Capabilities The goals, assumptions. and current strategy of a competitor influence the likelihood. timing, nature, and intensity of its reactions. The competitor's ability to initiate or react to strategic moves and deal with environmental events is based on its strengths and weaknesses. Firms should examine the competitor's core capabilities its strengths and weaknesses 13 in each of the following functional areas:
- products
- dealer / distribution system
- marketing and selling
- Operations / manufacturing
- research and engineering
- overall costs
- financial strength
- organization
- general managerial ability
- corporate portfolio
- human resources
- relationship with key publics for example. government)
In addition to the above factors, the consistency of the competitor goals and strategy should also be examined. First, internal consisteney exists when goals are mutually achievable, when key operating policies address the goals. and when goals and policies reinforce each other. Second environmental fit exists when the goals and policies exploit industry op. portunities, deal with threats, and respond to broader societal concerns. Third, resource fit occurs when the goals and policies match the resources available to the firm. Fourth. communication and implementation can occur successfully when the goals are understood by the key implementers, there is sufficient congruence between goals and policies and the values of the
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