The role of business strategy to create a competitive advantage in the organization (original) (raw)
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International Journal of Business and Management, 2011
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European Journal of Business and Management, 2019
The purpose of this study is to discover and to analyze the effect of: 1. Managerial factor towards strategic planning, 2. Environmental factor towards strategic planning, 3. Cultural organization factor towards strategic planning, 4. Strategic planning towards the competitive advantages, 5. Company Perfomanc toward Competitive Advantage. This study is a causal type of study and this study tested the results using Path Analysis. The measurement of the result used Linkert scale. The population of this study is the entire Micro-, Small-, Mediumscale Enterprise (UMKM) actors. The data gathered were in the form of primary and secondary data. Study result showed that managerial factor insignificantly and negatively affected Strategic Planning. Then, environmental factor significantly and positively affected Strategic Planning. Cultural organization factor insignificanly and positively affected Strategic Planning. As for managerial factor, it directly influenced company performance. Managerial factor, cultural organization factor, and environmental factor influenced, as many as 63,3%, to Company Performance, whereas managerial factor, cultural organization factor, environmental factor, and performance influenced, as many as 88,8%, to competitive advantage.
Impact of Strategic Management on Competitive Advantage
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The classical management approach focused on the increase of productivity which even at that time could not had been realized without setting objectives and elaborating plans. In Taylor's era, however, analyses were primarily focused on solving internal problems of the organizations; structure design, organization, performance evaluation and control had become the focus of attention. In general, short-term, operative goals had been set and the implementation of them had been tried to be achieved. The term "strategy" came much later into the focus of attention, only in the 1950s. After recognizing the importance of strategic planning, strategic management has become the most important concept and tool of the corporate governance under competitive conditions. The theory and methods of strategic management have been greatly evolved over the past decades and now strategic management can be considered as the starting point of several new disciplines. But the views on strategies have been also changed: new theories have been developed for the systematization and for their implementation. The presentation discusses the main stages and approaches of the strategic thinking. It deals with the divergences and branching of the strategic management and the professional areas starting thereof. Finally, it attempts to form groups of the existing strategy development approaches.
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The imperativeness of strategic alignment in attaining organizational objectives have become critical in this contemporary business age. The study examined the role of Business Strategy on Mission Accomplishment of Manufacturing companies with a major focus on mission statements of two multinational companies in Nigeria. Probability and non probability sampling techniques were adopted. In the first stage, the two multinational companies were purposively selected among the list of registered manufacturing companies while in the second stage, a simple random sampling procedure was employed to draw participants from the organizations. A total sample of 384 participants was planned by the sampling procedure, however, only 291 participants were successfully interviewed. From the analysis, it was asserted that the employment of business strategy enhances organizational mission irrespective of the type, ownership, management and size of the organization. In addition, there is need for a thorough environmental scanning in order to select the appropriate business strategy to be adopted in accomplishing the specific aspect of the organization`s mission.