Convenience



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Fundamentals-of-Management-8th-Edition-Ricky-Griffin-978-1285849041

distinctive competence
is something the organiza-
tion does exceptionally well. A distinctive competence of Abercrombie & Fitch is its
speed in moving inventory. It tracks consumer preferences daily with point-of-sale
computers, electronically transmits orders to suppliers in Hong Kong, charters 747
cargo planes to fly new products to the United States, and has those products in stores
48 hours later. Because other retailers take weeks or sometimes months to accomplish
the same things, Abercrombie & Fitch uses this distinctive competence to remain
competitive.
12
The
scope
of a strategy specifies the range of markets in which an organization will
compete. Hershey Foods has essentially restricted its scope to the confectionery business,
dpa
picture
alliance/Alam
y
Resource deployment is an important part of strategic management. General Electric, for example,
has often used profits from its U.S. operations to invest in new business opportunities abroad. In
2013, for example, the firm broke ground on a new energy business in Berlin. Much of the start-up
costs for the new business were funded from other GE operations.
effective strategy
A strategy that
promotes a superior
alignment between
the organization and
its environment and
the achievement of
strategic goals
strategy
A comprehensive plan
for accomplishing
an organization’s
goals
strategic
management
A comprehensive
and ongoing
management
process aimed at
formulating and
implementing
effective strategies; a
way of approaching
business
opportunities and
challenges
distinctive
competence
An organizational
strength possessed
by only a small
number of
competing firms

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