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1

Discuss FIVE components of a well- developed strategy

1. SCOPE

2. GOALS AND OBJECTIVES

3. RESOURCE DEPLOYMENTS

4. IDENTIFICATION OF SUSTAINABLE COMPETITIVE ADVANTAGE -

5. SYNERGY

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1. SCOPE

Breadth of strategic domain (number, type of industries, market segments it competes in). Should reflect management’s view of the firm’s purpose or mission.

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2. GOALS AND OBJECTIVES

Desired level of accomplishment on multi dimensions of performance (return on investment, profit contribution of each of the products)

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3. RESOURCE DEPLOYMENTS

allocation of resources. Every organisation has limited financial and human resources. Decides how to allocate resources across businesses and product markets.

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4. IDENTIFICATION OF SUSTAINABLE COMPETATIVE ADVANTAGE

Differential advantage over competitors . How can the business position itself to develop and sustain a differential advantage over current and potential competitors? Business managers must assess distinctive competencies and strengths relative to competitors

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5. SYNERGY

Total is greater than sum of its parts. When all firms businesses, product- markets and competencies reinforce one another. Enables total performance