Description
Company leadership create strategies or move towards a strategic direction, both short- and long-term so the company becomes or remains sustainable. To remain competitive, the leadership must determine its value to the end consumer and those individuals or third parties associated with the products and services provided.
The strategic plan is based on the company’s internal and external analysis which promotes the company’s mission and vision. Companies determine the associated risk to ensure average or above-average returns, and as such, decisions are made periodically and annually by the leadership and board of directors.
Strategic flexibility is necessary based on the various actions, outcomes, and customer demands internal and external audits. Based on the industrial organization (I/O) model, the external environment is of importance as leadership within similar companies compares their strategies for success.
Conversely, the resource-based model promotes the exclusivity of the company’s resources to create value and sustainability (Hitt et al., 2017). The strategic approach taken is based on the competitors, current and future decisions and goals, and company marketplace.
What would be examples of information, data, or decisions anticipated or needed when completing an I/O analysis and a resource-based analysis?
Hitt, M. A., Ireland, R. D., Hoskisson, R. E. (2017). Strategic management: Competitiveness & Globalization: Concepts and cases (12 ed.). Cengage Learning.
