By Comparison with the Other Factors, Evaluate How Important Stakeholders Are in Strategic Management.

2678 Words Feb 19th, 2006 11 Pages
The first intention of this paper is to give a clear understanding of key terms used throughout, helping illustrate their meanings and importance.

Strategy: Johnson et al (2005, p9) argues, "Strategy is the direction and scope of an organisation over the long term, which achieves an advantage in a changing environment through its configuration or resources and competences with the aim of fulfilling stakeholder expectations."

I feel that this gives a clear understanding to the term, as it involves the four key areas every organisation needs to manage; firstly, what areas the business wishes to operate within, i.e. that markets and its activities. Secondly, creating the advantage, the selling point, while recognising the environment it
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Apple certainly has several of these elements, such as ‘innovative capability ' that generate their sustainable competitive advantage. The return potential associated with utilizing such a capability can be tested using the VRIO framework suggested by Barney (2002). When using this mechanism, Apples resources and capabilities are indicated to be excellent contributors towards creating a sustainable competitive advantage.

The need for this competitive advantage to be sustainable is due to the changing environment in which it competes, another component to strategy. The environment in which a business operates is diverse and complex, Johnson et al (2005), suggest ‘layering ' the business environment helps to identify key areas and ways of coping with complexity and change. Within these layers tools can be used for further understanding of the issues associated within it. The ability to react to changes in the environment is essential for maintaining a competitive advantage; it is an interactive process, with changes in either component affecting the other. For example, Apple was aware that competitors such as Sony and Panasonic had identified customers wanted an alternative to a large ipod and were producing, smaller, cheaper units, albeit with less capacity. Apple 's response was to produce the ipod shuffle, a stripped down MP3 player, technically inferior to the competitors offerings. However, Apples ' unique selling point was to use the durability of its
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