Advantages For Organization Over Competition Business Essay


World is dynamic, there is always a change in technology, fashion, competitors; Strategy is about how a company cope with all of the changes (Martin, 2012). The word strategy has a variety of meaning; therefore it is hard to explain however, it can be defined as an action which helps an organization to become unique or different or better from its competitors, strategy is about making choice of a new game to play as well as playing the existing game better within the current market environment (Mazzucato, 2006). In other words strategy is about where a business wants to go in long term, (jhonson, 2008) . which market to compete with and the activities involve in such market, what are the external and internal factors can have an effect in business and how to deal with them (Johnson.Scholes.1998, n.d.). According to Thompson and Strickland strategy is a pattern of actions employs by a manager to acquire an organizations goals and objective (Strickland, 2003). It deals with the issues which can become barrier for an organization to survive for long time (Stephens, 2005). There are many types of issues which a strategic manger deals with namely:

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Long term direction of the company; where an organization wants to reach after a certain time.

Scope of organizations activities.

Advantages for the organization over competition.

What are the resources of an organization and competence for example, explaining the capabilities of an organization in terms of resources and competence?

Strategic fit with the business environment. (Scholes, 2008)

Value and expectation of stakeholder. (Partridge, 2005)

Strategic management:

According to economist nobody actually knows what strategy is even though it is used widely as it depends on the nature of business, the strategy used by ASDA may not be similar to Apple as they are two different companies and their area of operations are different, moreover, the strategy used by ASDA is not definitely similar to Sainsbury or Tesco; if it is same its not strategy cause strategy is something which allows you to get competitive advantage. (Henry, 2008). Almost every organizations thing about following questions:-

Where we want to take our business in future or what the shape of the business will look like after may be 5 or 10 years?

What do we need to do to attract more customers and how can we pursuit our existing customer to spend more money on our product and service.

What are the new products or services we should offer in future?

How can we beat our competitors?

Are there any resources we need to develop to be able to compete in future?

As a manager of an organization you may have to play an important role in framing these questions, finding answer, and making them work in practice. Strategic Management is all about taking strategic decisions which address these questions (Partridge, 2005). It is an ongoing process through which an organization forms its vision; analyze the external and internal environment (E.Hoskisson, 2009). Strategic management can be defined as a dynamic process of formulation, implementation, evaluation, and control of strategy employed by the manger (Kazmi, 2008).

Model of Strategic management:

There are basically four phases in strategic management process, the model of strategic management is as follows:-

Strategic intent



Business definition

Business Model


Strategy formulation

SWOT Analysis

Corporate level strategy

Business level strategy

Strategic analysis and choice

Strategic plan

Strategic Implementation



Resources allocation



Functional& operational

Strategic Evaluation


And Evaluation

Figure: Comprehensive model of strategic management (Kazmi, 2008).

Key Elements of strategic management:

Strategic Intent: How farm would like to use its resources, capabilities, core competence? (Balkin, 2012).

Mission: A mission statement expresses the purpose of an organization, it answer the question what business we are in? Why are we here? (Williams, 2011). It explains the reason for the existing of organization.

Vision: Vision statement explain or answer what do we want to become? (Hartline, 2011)

SWOT: It is a strategic tools used by a strategic manager to identify firms strength, weakness, opportunity, and threats in current market situation (Griffin, 2008). It is pretty much effective if it is done properly as it helps an organization to find out its internal strength and help to make them use against unknown threats. SWOT analysis is generally used to evaluate the fit between companies' internal resources, capabilities and external possibilities.

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PESTLE/ STEEP: There are some factors which have an effect on organization's daily activities directly or indirectly, such as Political, Economic, Social, and Technological, Legal, Ecological, environment of an organization. PESTLE analysis helps an organization to get rid of these threats;

Political: tax policy, labor law can affect business activities.

Economic factors: inflation, exchange rate, interest rate etc.

Social factor: people growth rate, age distribution etc.

Technological factors are change in technology, R&D activity.

Environmental/ ecological refers change in weather or climate change which definitely affects industries such as tourism, insurance etc.

Legal factors employment law, health and safety law etc. have an on the operation of company may raise its cost.









A leader is a person who protects and gives direction to the people, co-ordinates their activities and checks their excesses. While a leader refers to a person, leadership is a process whereby a group of people are co-ordinated, influenced and managed in such a way that there is understanding between the leaders and the led. In other word, Leadership is a process where an individual influence a group of individuals toward a common goal (G.Northouse, 2012). There are many definition of leadership; it is easy to recognize but hard to define or explain. For example, Warren Bennis and Burt Nanus states Leadership is like love we cannot define it or teach it but we can always identify it, they also mentioned leadership is like beauty you cannot define it but you know when you see it (C.Ricketts, 2011). The meaning of leadership vary person to person, people describe leadership according to their individual perspective, it is defined as an art of influencing a group of people, to follow certain course of action, the art of controlling them and getting best out of them (Adair, 2005).

A leader should have following qualities:

Ability to make decision,




Sense of justices.




Should have a sense of duty.

Peaceful in crisis.

Self Confidence

Capability to accept responsibility.


Eagerness to do something.

Constant courage.


Physical fit.

Theories of Leadership:

Different people have got different view about leadership; the concept of leadership is vast, however, the most known theories of leadership are briefly described below:-

Great Man Theory: Great man theory is based on the assumption that a Leader is born not made; they are exceptional people born with quality to be leader, a great leader will rise when there is a great need (Kluwer, 2009). It was originally proposed by Thomas Carlyle.

Trait theory: It is based on the assumption that people are born with some inherited traits; a trait is a distinguished quality of an individual which is always inherited, some of the important traits of leadership:


Self confidence




(Shriberg, 2011).

Behavioral theory: Behavioral theory is based on the assumption that a leader can be made rather than born, it does not seek inborn traits but it emphasis on what a leader is doing. It believes that people can be taught to become leader; they may improve themselves by observation (Susan R.Komives, 2011).

Situational theory: Situational theory refers that the best action of leaders depends on the range of situational factors. A leader does not only stick with one types of leadership style he may change his style from autocratic to democratic if situation force him to. According to situational theory a leader's effectiveness could be influenced by four factors, these are: - 1. Personal characteristic of leader.

2. Type of job.

3. Nature of organization.

4. Nature of people who follow (I.Bertocci, 2009).

Contingency theory: A leader's ability to lid his subordinate depends on various situational factors such as task structure, personality of followers, leaders' position or power, leader member relationship (Chance, 2002).

Transactional theory: Transaction theory is based on the belief that people are motivated by reward or punishment. A subordinate should do what a manager says them to do, in case of transactional leadership; a leader role and task of subordinate, initiate structure, provide appropriate rewards, try to meet social needs of followers (L.Daft, 2010).

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Transformational theory: The words transform means change, it has come from Latin word transformare which means change in nature, functions, to convert. It refers that people will follow a person who inspires them. In generally transformational leaders are charismatics. (Roberts, 2003)

Charismatics Leadership:

Types of leadership:

Link between Leadership and Strategic management: If we look at all of the discussion above we can come into a conclusion that leadership and strategic management is interlinked with some minor differences. Strategic manager looks to achieve a long term goal and a leader also looks to acquire long term goal. Strategic management help an organization to identify what they intend to achieve and how they will accomplish whereas leadership concerned more about to motivate followers of an organizations in an effective manner to get onto its target.


It will be hard to find out an organization who does like to run business for short time or who does not dream for serving ages, as everyone love to last for long they need something to cope with the changes of business environment (external as well as internal), they need to be updated to meet the customers' needs and wants. So, the action which is taken by an organization to be in the market for long, long, time is called strategy and the person who runs/ lead this process effectively who is known as a leader. Therefore, the existence of strategy and leader is inevitable; one cannot live without the other, a strategic management becomes useful when it's combined with a good leadership.