Principles Of Management (BUSN 3200)
Read the instructions carefully and respond to the requirements. Note: This assignment must be submitted on Turnitin using Microsoft Word or a PDF file. Do not use bullets. See your syllabus for the due date
Textbook: https://drive.google.com/file/d/1FK30aaTjz2jpjnuTAjT8pFQCRyGgjnI9/view?usp=sharing
1. (a) Define Competitive Advantage
(b) There are two ways in which a company can obtain and sustain a competitive advantage. What are the two ways and what are strategies that a company can use achieve this advantage? (half a page)
2. From the seven topics below, select four.
a. Write a definition for each topic you selected
b. Think of at least two ways in which each selected topic could help a company gain a competitive advantage. On each topic write at least two paragraphs which show how each way (idea) could help the company. One way (idea) per paragraph. Extra points for more than two ideas-paragraphs. (preferably 1 page for each topic)
Topics from which to choose:
c. Value Chain Management: Functional Strategies
d. Leadership
e. Decision-making, Planning and Strategies
f. Ethics
g. Organizational Control and Change
h. Human Resource Management
i. Organizational Structure and Culture
Additional requirements
1. Cite the source of each definition
2. Use your understanding of the topics you chose to support your ideas.
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(a) Define Competitive Advantage:
Competitive Advantage refers to the unique position that a company holds in the marketplace, which allows it to outperform its competitors and achieve superior financial performance. It is the ability of a company to create and deliver value to its customers in a way that is perceived as better than what its competitors offer. This advantage can be achieved through various means, such as offering superior products or services, lower prices, better customer service, or innovative business practices. Ultimately, competitive advantage enables a company to attract and retain customers, gain market share, and generate higher profits.
Source: Dess, G. G., Lumpkin, G. T., & Eisner, A. B. (2019). Strategic management: Creating competitive advantages (9th ed.). McGraw-Hill Education.
(b) Two ways to obtain and sustain a competitive advantage:
Cost Leadership Strategy: Companies can achieve a competitive advantage through a cost leadership strategy by offering products or services at lower costs than their competitors. This can be achieved through various means such as economies of scale, efficient supply chain management, technological advancements, and process improvements. By reducing costs, the company can either offer products at lower prices, which attracts price-sensitive customers, or maintain similar prices while achieving higher profit margins. Lower costs also provide flexibility in pricing, enabling the company to respond to competitive pressures more effectively.
Differentiation Strategy: Another way to obtain and sustain a competitive advantage is through a differentiation strategy. This involves creating unique and distinctive products or services that are valued by customers and cannot be easily replicated by competitors. Differentiation can be achieved through various factors, including product design, features, quality, branding, customer service, and innovation. By differentiating themselves, companies can create a perceived value among customers, allowing them to charge premium prices and build customer loyalty. Differentiation also acts as a barrier to entry for potential competitors, as it requires significant resources and capabilities to imitate.
Strategies to achieve a competitive advantage:
Cost Leadership Strategy: To achieve cost leadership, a company can focus on reducing production costs through efficient supply chain management, economies of scale, or technological advancements. It can negotiate favorable contracts with suppliers, invest in automation, streamline processes, and optimize resource utilization. By continuously monitoring and controlling costs, the company can maintain a pricing advantage over competitors, attract cost-conscious customers, and potentially expand its market share.
Differentiation Strategy: To differentiate its products or services, a company can invest in research and development to innovate and create unique features or functionalities. It can focus on superior product design, customer experience, or brand reputation. By understanding customer needs and preferences, the company can tailor its offerings to meet specific requirements and create a distinct competitive advantage. Effective marketing and branding strategies can also enhance differentiation by communicating the unique value proposition to the target market.
Source: Dess, G. G., Lumpkin, G. T., & Eisner, A. B. (2019). Strategic management: Creating competitive advantages (9th ed.). McGraw-Hill Education.
