Competitive Advantage And Managing A Company 's Business Model

1692 WordsJan 29, 20177 Pages
1. What is competitive advantage and what is its relation to company’s business model? A company is said to have a competitive advantage if its profit is greater than the average profit made by its competitors in the same industry sector. Competitive advantage is vital to a company’s success; it is not enough to just gain an advantage over your competitors but also to maintain it steadily over the course of time. Almost every company or organization has a business strategy that enables it to have some advantage over its competitors, irrespective of the size or value of the company. Analyzing competition and combatting it is a crucial part in the development of a company’s business model. Example: There are a large number of local…show more content…
What are its components and what SWOT does for strategic decision making in a company? SWOT analysis is a very popular business tool that is used to evaluate the strengths, weaknesses, opportunities and threats that relate to any company, organization or project. It is used to identify the internal and external factors which will contribute in achieving the organization’s main goals. SWOT analysis is a very useful and relevant tool which aids decision making in a lot of ways: • Determining the feasibility of the scope/objectives defined • Analyzing the impact of external threats and determining the sustainability in the current environment • Devising a strategy to use its strengths to gain competitive advantage • Exploring new opportunities, to plan for sustained competitive advantage 4. How various levels of managers participate in the process of strategic decision making? Top level or Strategic level managers: The main responsibility of the top level managers is to design the business model and devise the strategies and policies of the company in order to be successful. They are responsible for the overall performance of the company, and are answerable to the shareholders. Middle level or Functional level managers: Functional managers are responsible for implementing the policies and objectives laid down by the top level managers by managing resources and allocating work to employees in various departments and functional areas. Each functional
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