SLP 4 - Strategic Choices - Essay Example

Competitive Advantage Task: Competitive Advantage Step A 5 x 5 Strengths Weaknesses Opportunities ThreatsLow cost high profit margin competitionEconomies of scale Changes in technologyDifferentiationHigh market share High cost competitive advantage InnovationsFocusVisioncompetitionEconomies of scale InnovationsPreemptiveInformed decision Time wasting competitive advantage InnovationsStep 2 & 3: StrengthsWeaknessesOpportunitiesThreatsLow costAutomationPolitical Factors (Tax policy)Economic GrowthEmployment LawsDifferentiationServiceInflation (Economic factors)Social Factors (emphasis on safety)Technology developmentFocusFirm InfrastructureInflation (Economic factors)Technology developmentIn Bound LogisticsPreemptivePopulation Growth RateServiceOutbound LogisticsService According to the website (http://www.quickmba.com) the activity of attaining competitive advantage in business requires total utility of both resources and labor.

The investor should choose the right technology while taking optimum use on cost advantage and product differentiation. This will enable the firm to attain maximum competitive advantage through deliverance of maximum utility to customers with the least possible cost. 4. A. According to the website http://www.quickmba.com/strategy/pest/From PEST analysis automation of the main activities using machines Reduction on costs that should have been paid to employees A well-invested technology enables achievement of economies of scale.

Streamlines all major activities and improves efficiency (Quick MBA, 2010). It facilitates informed decision making thus minimizing chances of errors. B. Weakness: Political factors (Tax policies) Tax waivers may reduce on total annual costs increasing on profit margins.Through more money saved from tax waives, investment can be done on product. This, in the, end guarantees customer loyalty (Alagse). Creates good relations with the authorities this creates good will for the firm.Development of other investment opportunities due to reduced costsC.

Opportunities: Economic Growth Reduced cost facilitates better efficiency and total output, which is good for the economy.A differentiated product ensures a larger market share, which in turn maximizes on economic growth.Well-set economic goals can easily be achieved as it gives direction to the organization. It facilitates better achievement of goals and, in the end, increased economic growth.Threats: Employment Laws Pay employees well When the employees are well remunerated and better, motivated output will increase because of an increased average product of labor (Kim & Mauborgne, 2012).

The firm is able to attain competitive advantage over other firms due to the well-established work force, which guarantees better quality products. A good economic growth enables diversification; as a result, there is stability in business.It facilitates well-calculated risks and returns on investment increasing the return on investments (Michael, 1985).Conclusion From Michael’s book (1985), we must be able to balance on our use of economic, human and technological resources in order to achieve good levels of output.

This will ensure that the products produced are of satisfactory quality to consumer and that the cost incurred is the lowest we can spend as affirm. We must also look at other factors such as the specific needs of the consumer in order to be able to achieve our goal. This will also help us to attain brand loyalty from our customer. . ReferenceAlagse. (n.d). customer focused on low cost leadership strategy. Retrieved from: http://www.alagse.com/strategy/s10.

php Kim & Mauborgne. (2012). what is blue ocean strategy? Ten key points. Blue ocean strategy. Retrieved from: http://www.blueoceanstrategy.com/abo/what_is_bos.htmlPorter, M. E. (1985). Competitive Advantage: Creating and Sustaining Superior Performance: New York, NY. The Free Press.Quick MBA. (2010). Competitive advantage. Retrieved from: http://www.quickmba.com/strategy/competitive-advantage/