Core Competencies In Strategic Management

Strategic management is a series of decisions and actions that guides the long-term performance of an organisation, which includes environmental analysis, strategy formulation, strategy implementation, and evaluation and control (Wheelen & Hunger, 2010). And strategic management, which will assure its continuous success and make it secure from changing situation, is an approach to connect the management of organisation with its environment (Ansoff, 1984).

Strategic management can provide coordination between actions, objectives and direction for organisation to achieve organisational goals.

1.1 Core competencies

Strategy is the direction and scope of an organisation over the long-term, which need use its resources to achieves advantage for

Core competencies are a set of advantages of organisation that enables to deliver unique value to customers, which creates sustainable competitive advantage for organisation. Core competencies also contribute substantially to the benefits a company’s products offer customers. It’s hard for competitors to copy or procure. Understanding Core Competencies allows companies to invest in the strengths that differentiate them and set strategies that unify their entire organization. All the strategy must base on core competencies of a firm, which includes tangible and intangible resources.

An organisation want to develop core competencies must:

a. Determine which internal capacities are key strategic factors to creating and sustaining value.

b. Conduct an organization wide core competency assessment and isolate strengths and weaknesses.

c. Benchmark against other companies with the same capacities to ensure that the firm aims to develop key factors.

d. Create an organizational road map that sets goals for competence

1.3 directional, adaptive, market entry and competitive strategies

Directional strategies, adaptive strategies, market entry strategies, and competitive strategies, these 4 strategy types make up strategy formulation, and they will determine the way, the organisation choose, to achieve its mission and vision of organisation (Swayne, Duncan & Ginter, 2008).

a. First, the organisation must set up clear directional strategies, which identifies its mission, vision, values, and goals.

b. Next, the adaptive strategies must be identified, which are used to accomplish the directional strategies.

c. Third, market entry strategies must be selected to accomplish the adaptive strategies. Market entry strategies indicate the method for carrying out the adaptive strategies.

d. Fourth, competitive strategies must be determined to carry out the market entry strategies. Competitive strategies determine the organisation’s strategic posture and identify the basis for competing in the