Assignment 1

Answer the following questions as briefly as you can.
Do not forget to indicate the references

you utilized.

1. What are strategic competitiveness, strategy, competitive advantage, above-average
returns, and the strategic management process?
Strategic Competitiveness is a strategy wherein companies and businesses plan to obtain their
objectives and goals amidst tough competition.
Strategy is the selection of an appropriate management style that will aid in the management’s
goal of attaining the company’s goals and utilizing its resources.
Competitive Advantage refers to the ability of a company to provide goods or deliver better
services than its competitors. It also allows the company to attain superior margins and value.
Above-average Returns mean that the investor realized a profit that is higher than what is
expected with the investments in contrast with those which has similar risks.
Strategic Management Process is an endless cycle that helps in appraising the company and
industries in which it is involved.
2. What are the characteristics of the current competitive landscape? What two factors are
the primary drivers of this landscape?
Current Competitive Landscaping is a systematic tool used in analyzing the competitive
environment at the present. Thus, it has the ability to identify the business’ competitors. Through
this, the company will be able to compete better by knowing and understanding its competitor’s
way of doing things. Aside from that, it also promotes adaptation to changes to beat the
challenges of the changing environment.
3. According to the I/O model, what should a firm do to earn above-average returns?
According to Industrial Organization Model, the firm shall study the external environment,
especially the industry environment. Then, it shall locate the industry with a high potential of
having above-average returns. Third, it shall also identify the industry’s strategy to attain
above-average returns. Furthermore, it shall then develop or acquire assets or skills to be used
in implementing the strategy. Lastly, it must use the firm’s strengths to implement the strategy.
4. What does the resource-based model suggest a firm should do to earn above-average
returns?
According to the Resource-based Model, the firm shall first identify its resources to study
its strengths and weaknesses. Then, it shall determine its capabilities. Third, the potential of its
resources and capabilities for competitive advantage must be determined. Afterward, the
location of an attractive industry is to be done. Lastly, the firm must select the best strategy.
5. What are vision and mission? What is their value for the strategic management process?
Vision is a picture of the things which the firm would like to achieve or the place where the
firm would like to be. On the other hand, the mission is the firm’s reason for existence and
purpose. Thus, a company must set first its vision and mission in order to identify what kind of
approach or strategic management process to be done. Thus, identifying these first would be an
effective way to efficiently attain all its goals and objectives without wasting any time, effort,
and resources.
6. What are stakeholders? How do the three primary stakeholder groups influence
organizations?
Stakeholders are defined to be any individual or group who may affect and can be affected
by the firm. It is divided into 3 primary groups: Capital Market, Product Market, and
Organizational. The Capital Market acts as the major source of capital, it can be in the form of
assets or money. They are also the responsible party involved with the investments and division
of profits. With the Product Market, which includes the customers, suppliers, and unions, the
buying and selling cycle is found here. Lastly, the Organization which is composed of employees
and managers is the people who have first-hand experience and control of things. They regulate
how the system is to be used efficiently and effectively.
7. How would you describe the work of strategic leaders?
Strategic leaders must possess these traits when working:
A. Hard work- they must be hardworking in order to not slack and do their work every
time.
B. Thorough Analyses- they must be thinking critically and from a different point of view
to minimize anything to be overlooked.
C. Honesty- they must be honest in their dealings to avoid any malpractice and
inconsistency.
D. Desire for Accomplishment- they must ensure that what they are planning on doing is
for the best of the firm. They must always put in their heart that the achievement of the
company is their crown of glory.
E. Common Sense- sometimes critical thinking may be disregarded because things can also
be interpreted as it is or in a simple manner.
8. What are the elements of the strategic management process? How are they interrelated?’
Strategic Management Process starts with studying the external and internal
environment. This is true because no one can plan or strategize well if he does not know
anything about the firm, especially its problems. Then, the identification of marketplace
opportunities and threats must be done. Through this, the person in charge will be able to
know which part to strengthen or improve. Third, determining core competencies must also
be done in order to utilize what the company has in the process to minimize any extra cost or
time if what is needed is already available in the company. Human resources may also be
part of this step. Fourth, the usage of strategic intent to leverage resources capabilities,
and core competencies and win competitive battles is also a must in order to improve the
process of the company and its value. Moreover, the integration of the formula and
implementation of strategies is to be prioritized in order to start changes and improvements.
Lastly, the cycle continues as seeking feedback is to be performed so as to continually keep
up and improve its strategies as needed.
References:
https://swotandpestleanalysis.com/what-is-strategic-competitiveness-importance-how-to-achieve-it/
https://todayfounder.com/strategy-in-management-definition-types/
https://corporatefinanceinstitute.com/resources/management/competitive-advantage/
https://penpoin.com/above-average-returns/
https://www.managementstudyguide.com/strategic-management-process.htm
https://www.transtutors.com/questions/what-are-the-characteristics-of-the-current-competitive-
landscape--548674.htm
https://ihoctot.com/according-to-the-io-model-what-should-a-firm-do-to-earn-above-average-returns
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Answer the following questions as briefly as you can.

Do not forget to indicate the references

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