Discuss how the terms capabilities, competency and distinctive competency differs from each other

29 Mar

Strategic Management

 

1. Strategic Management crucially define and determine the long-term performance of a business entity. This is with reference to, Nokia, who lost its pace in the smartphone race. As quoted by source:

“Nokia has been long the market leader in the mobile phone market and with its enormous reach and huge customer base, had successfully created significant entry barriers for any new player as such. Its Symbian OS being the backbone of the whole success story contributed to a great deal in its higher perceived ease of use. Customers used to enjoy the features, thanks to highly simplified GUI. It ruled the middle and low-end market for long.

But, Nokia did a blunder and lost its market share.”(Source: https://www.marketing91.com/nokia-lost-market-share/) In the context of above case, define the term strategic management, discuss, what are the three major challenges to strategic management and specifically point out in relation to Nokia among the three challenges, out of these challenges which challenge hit hard to the Business Giant.

2. Reliance Industries Limited is a Fortune 500 company and the largest private sector corporation in India.

RIL, have evolved from being a textiles and polyester company to an integrated player across energy, materials, retail, entertainment and digital services. In each of these areas, they are committed to innovation-led, exponential growth. It’s clearly evident that RIL has adopted parenting strategy. Discuss the concept of corporate parenting. Discuss the analytical steps which are crucial in developing corporate parent strategy. Conclude how Corporate parenting or parenting strategy is more beneficial when compared against portfolio based corporate strategy.

3. General Electric (GE) is well known for its extraordinary competency in management development.

a. Discuss how the terms capabilities, competency and distinctive competency differs from each other.

Also, with reference to the VRIO Framework of analysis, highlight the four questions which any strategist might have examined in relation to GE for evaluating its extraordinary competency in management development.

b. Describing VRIO Framework with reference to GE:

– Valuable

– Rareness

– Imitability

– Organization

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