Has Dick Smith Foods Achieved Strategic Competitiveness?
Has Dick Smith Foods achieved strategic competitiveness?
La Trobe University MGT3SMG
Lana Neuwirt
17035913
Words
1200
09/09/2011
Has Dick Smith Foods achieved strategic competitiveness?
Lana Neuwirt 17035913
Introduction Dick Smith Foods (DSF) was founded in 1999 and is supporting Australian businesses and economy by distributing and selling products made by Australian-owned companies. For the firm’s competitiveness analysis a broader view on strategic management and its elements is presented in this paper. Strategic management Strategic management process is the action plan of a firm’s formulated strategy and its implementation, whereas strategy is firm’s long term conception of means for attaining objectives, increasing performance and gaining competitive advantage (Rice, Martin, Carpenter, & Sanders, 2010). According to Barney (1991) a firm has competitive advantage when its performed value-creating strategy is not implemented by other competitor at the same time. Due to the ever-changing firm’s environment and competition, company’s competitive advantage might not last long (Lei & Slocum, 2005). Hence, as stated by McGahan & Porter (2003) and Baloch & Inam (2009) firms which seek strategic competitiveness and above average returns in the long run must create strategic fit between the formulation and implementation of its value-creating strategy and learn to exploit the competitive advantage by using instruments of strategic management. Characteristics of the 21st century Based on the article of Hitt, Keats, & DeMarie (1998) the nature of the economy and competitive landscape in the 21st century is rapidly changing. Global economy with blurred boundaries among the industries, hypercompetition, short product life cycles, economic interdependence and dramatic technological changes are significant consequences of the globalization (Ireland & Hitt, 2005). As a result, firms, such as DSF must adapt to the turbulent and highly competitive
La Trobe University MGT3SMG
Lana Neuwirt
17035913
Words
1200
09/09/2011
Has Dick Smith Foods achieved strategic competitiveness?
Lana Neuwirt 17035913
Introduction Dick Smith Foods (DSF) was founded in 1999 and is supporting Australian businesses and economy by distributing and selling products made by Australian-owned companies. For the firm’s competitiveness analysis a broader view on strategic management and its elements is presented in this paper. Strategic management Strategic management process is the action plan of a firm’s formulated strategy and its implementation, whereas strategy is firm’s long term conception of means for attaining objectives, increasing performance and gaining competitive advantage (Rice, Martin, Carpenter, & Sanders, 2010). According to Barney (1991) a firm has competitive advantage when its performed value-creating strategy is not implemented by other competitor at the same time. Due to the ever-changing firm’s environment and competition, company’s competitive advantage might not last long (Lei & Slocum, 2005). Hence, as stated by McGahan & Porter (2003) and Baloch & Inam (2009) firms which seek strategic competitiveness and above average returns in the long run must create strategic fit between the formulation and implementation of its value-creating strategy and learn to exploit the competitive advantage by using instruments of strategic management. Characteristics of the 21st century Based on the article of Hitt, Keats, & DeMarie (1998) the nature of the economy and competitive landscape in the 21st century is rapidly changing. Global economy with blurred boundaries among the industries, hypercompetition, short product life cycles, economic interdependence and dramatic technological changes are significant consequences of the globalization (Ireland & Hitt, 2005). As a result, firms, such as DSF must adapt to the turbulent and highly competitive
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