What is Strategic Management?
Question:
Discuss about the Challenges And Strategies In Managing Information.
The assignment helps in analyzing the different concepts of the strategic capabilities, competitive advantage and the core competencies that are used in different organizations. The main motive of the different kind of businesses is to adopt different kind of unique kind of capabilities in such a manner that they acquire competitive advantage, as this will help them in persisting along with succeeding in the current market area. There are different terms such as capability and competency that can be used in different organizations. The identification and description of such concepts is a dynamic aspect in the theory of strategic management .
The main aim and purpose of the report is to identify the different concepts related to strategic capabilities, competitive advantage and core competencies. The differences of such concepts will be correlated and evaluated in an effective manner. The VRIO model will be discussed in relation to a case study based on Grab Services that is one of the competitors of Uber. The essay will help in implementing and analyzing the different strategies concepts along with the analysis of the theories used by the managers and CEOs of the organizations in sustaining a competitive position in an effective manner.
Strategic management is defined as the sustaining and increasing the competitive advantage for the different corporate firms. The different capabilities of the organization are converted into the source of competitive advantage and the different core competencies of the firm in an effective manner. The strategic capabilities are defined as the set of different skills that are complex in nature along with different techniques and processes that helps in permitting to maintain such kind of events along with the performances of the employees (Bromiley et al., 2015). The practical knowledge and organizational capabilities are the different fundamental kind of factors that are estimated in the form of the globalization along with organizational outcomes and innovation. These kind of unique appearances help in growth of organizations that will help in contributing towards the future growth of the organizations and these help in acting as the instruments for evaluating the competition between different kinds of firms in the market (Mooney, 2001).
The different strategic core competencies help in creating successful implementation along with providing guide in different kind of methods for gaining the superior approach. It includes the authorizing the different corporate in redistributing the profits to achieve the purposes that is categorized in nature. The proper and continuous development in different entries and income streams help in achieving the different purposes and help in continuous development to generate resources in an effectual manner.
There are different kinds of organizations such as Apple wherein the potentiality of designing their different mobile devices help them in attracting huge number of individuals in the market (Mooney, 2001). The quick delivery offered by Zara and Netflix help them in meeting the requirements of the customers in an effective manner. Furthermore, it has been seen that the concept of competitive advantage, the company needs to choose a prime location as to become effective in nature. The strategic competitiveness has been derived from different concerns that are strategic in nature that includes uniqueness of the brand, scope of the corporate along with their performances, different kind of beneficial approaches towards the different consumers (Frynas & Mellahi, 2015).
Strategic Capabilities and Competitive Advantage
The perceiving of differentiation and correlation is the fundamental part of the entire study by acknowledging the different concepts in an effective manner (Frynas & Mellahi, 2015). Regarding the different correlation of such concepts, the different strategic capabilities of the organizations are generated from the different kind of methodology of the different core competencies wherein the strategies and capabilities of the firm are converted to the source of competitive advantage. There are different scholars who have narrated the different competencies as to accomplish the competitive advantage. Furthermore, the competitive advantage is the entire evaluation of the score competencies of the company along with the different capabilities. The scholars have claimed that it was necessary in nature to assess the different concepts, as this will define the sources of company to gain competitive advantage.
However, previously it has been stated that there were different academicians utilized the competency and capability without changing the meaning in a major sense. Furthermore, according to Chang, Kogut & Yang, (2016), it was seen that the researchers seized those in different kind of situations, wherein the concepts used are individual in nature; however, they are balanced. Furthermore, it was seen that strategic core competency helps in underlining the processing and technical capability in certain circumstances along with analysis of the consequences that are significant in nature. It helps in suggesting that the different organization with a capacity does not refer to the core competency of the ability and when the company is in charge of different outcomes common in nature, the capacity becomes the core competency in different organizations.
There are different kinds of firms that are settling the strategy observation as the specific process that is including scope that is extensive in nature. This helps in identifying and increasing the core capabilities that the company to create different unique stages to provide value to the customers and stakeholders. Furthermore, it was seen that there were no such strategic plan created, it has been noticed that in such firms the accomplishment of the goals along with objectives is not conceivable in nature. The entire process of strategic management is the process wherein the different executives realize and reflect the strategy that will arise as the constant competitive advantage. Furthermore, the entire method of strategic management refers to the describing the strategy of the firms (Stalk, Evans & Shulman, 1991). The entire process of strategic management comprises of four stages that include designing of the strategy, environmental examining, and achievement of the strategy and assessment of the strategy.
The environmental scanning is defined as the process of collecting, subsidizing and researching the information to generate resolutions that is strategic in nature. It helps in benefitting to assess the internal and external effects that influence the company. Furthermore, it has been seen that implementation of environmental examination progression, the entire management of the company needs to evaluate the same on the constant evidence along with effort to increase it effectively. Therefore, the different strategic competencies and core competencies are the different concepts that suits as the part of the examination that is internal in nature and they must be related to the internal resources of the company as well (Stalk, Evans & Shulman, 1991).
Core Competencies in Organizations
The internal examination of the company is the progression of determining the strengths and the weaknesses that are required for creating strategic choices that is suitable in nature. It helps in delivering the foundation for advancing the different kind of options that is strategic in nature to increase the entire competitive advantage in an effective manner. The entire duty of the organizational leadership is modeling different kind of strategies along with pushing them towards accomplishment.
Furthermore, it has been seen that in order to maintain proper and accurate competitive advantage in the company, the Chief Executive Officers of the company needs to operate the concept of the core capabilities and core competencies as the main source for gaining strategic competitive advantage that includes the innovation, leadership and making relationships. Furthermore, the CEOs of the companies may need to operate the different consequences of the internal kind of examination, as this will help in providing reflection towards the existing strategies and objectives of the company along with mission and vision to maintain competitive advantage effectively.
Chang, Kogut & Yang, (2016) argued that the different uncommon, unique and variable capabilities of the company may help in authorizing corporate as to gain the competitive advantage. In order to gain the competitive advantage, the different corporate need to exploit number of different approaches as to examine internal environment by analysis of VRIO model, value chain along with BCG matrix (Cardeal & Antonio, 2012). Furthermore, the external environment analysis is done by conducting Porter’s five forces and PEST analysis.
VRIO is the instrument that helped in examining internal capabilities and sources as this will actualize that may provide competitive advantage source. Bartlett & Beamish, (2018) commented that these are the resources that are unique, uncommon and non-interchangeable and this respective model exists for the four kind of questions that includes wherein asset is uncommon, precious and valuable to copy and it is the duty of company to take value of such sources. When the competency does not differ from each of these, this will help in carrying competitive advantage for corporate (Mooney, 2001). For instance- VRIO model of Google is the perfect analysis of operative board that did not have any such differences from the desires of VRIO model.
Google help in utilizing the information of employees to achieve the different kind of information and hire team members (Stalk, Evans & Shulman, 1991). This kind of capacity helps in choosing appropriate solutions for recruiting individuals and consumes their abilities effectively. Furthermore, the capability is uncommon wherein the corporate can exploit data that is based on workers authority and this can be expensive in nature as the software program is overpriced and this kind of skills make the information based choice in the future as well (Chang, Kogut & Yang, 2016).
Grab Taxi is Singapore based technology that helps in offering ride-hailing and logistic services through their app in Southeast Asian that includes Malaysia, Vietnam, and Philippines along with Singapore. Currently, the respective company is serving in more than 156 cities and they came into operation in the year 2012 in the month of June (“Ride Hailing Platform: Car, Taxi & Carpool | Grab”, 2018). The corporate is headquartered in Singapore and the CEO of the company is Anthony Tan as he is the co-founder of the company. The company faced few issues previously wherein there were no such kind of GPS rating and feedback system available on the application. However, the company did not create program based on cloud system as this helped in gaining competitive advantage (Bartlett & Beamish, 2018).
Furthermore, the company tried to understand the different requirements along with the convenience required by the consumers. The core competency of the company is to recruit the drivers for the company without directly hiring them and the company preferred staffing of such candidates (Galliers & Leidner, 2014). There are different competitors of Grab that includes Uber and Ola, however the services provided by Grab are unique and provide logistic services in an effective manner. Therefore, it can be concluded that services provided by Grab has been effectively implemented and these kind of core capabilities and competencies help in accomplishing the sustainable competitive advantage in an effective manner (Hill et al., 2014).
Conclusion and Implications
The core competencies and capabilities of corporate are the attention in formulation of the strategy that helps in guiding to maintain proper and accurate competitive advantage. The capability of the company turns into competitive advantage and the competencies relate to different kind of resources that will be advantageous for the company.
The entire essay helped in understanding the evaluation of capacities and capabilities of the corporate to accomplish the strategic management and gain competitive advantage. The proper examination of internal and external environment of the company is essential that helped in determining the strengths and weaknesses that will help in defining and assessing the strategies.
There are different kinds of firms that effectively accomplish the different goals wherein Grab Taxi is one of the companies. Grab uses the different kind of information and quickness of the delivery system that will help in analyzing and gaining competitive advantage. The main implication of the essay is to discover and describe the strategic capabilities along with the core competencies.
References
Bartlett, C. A., & Beamish, P. W. (2018). Transnational management. Cambridge University Press.
Bromiley, P., McShane, M., Nair, A., & Rustambekov, E. (2015). Enterprise risk management: Review, critique, and research directions. Long range planning, 48(4), 265-276.
Cardeal, N., & Antonio, N. S. (2012). Valuable, rare, inimitable resources and organization (VRIO) resources or valuable, rare, inimitable resources (VRI) capabilities: What leads to competitive advantage. Cardeal, N., António, (2012), 10159-10170.
Chang, S., Kogut, B., & Yang, J. S. (2016). Global diversification discount and its discontents: A bit of self?selection makes a world of difference. Strategic Management Journal, 37(11), 2254-2274.
Frynas, J. G., & Mellahi, K. (2015). Global strategic management. Oxford University Press, USA.
Galliers, R. D., & Leidner, D. E. (Eds.). (2014). Strategic information management: challenges and strategies in managing information systems. Routledge.
Hill, C. W., Jones, G. R., & Schilling, M. A. (2014). Strategic management: theory: an integrated approach. Cengage Learning.
Mooney, A. (2007). Core Competence, Distinctive Competence, and Competitive Advantage: What Is the Difference. Journal of Education for Business, 83(2), 110.
Ride Hailing Platform: Car, Taxi & Carpool | Grab. (2018). Grab PH. Retrieved 9 March 2018, from https://www.grab.com/ph/
Stalk, G., Evans, P., & Shulman, L. E. (1991). Competing on capabilities: the new rules of corporate strategy. Harvard business review, 70(2), 57-69.
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