Strategic Management and Strategic Competitiveness Essay - 4

Strategic Management and Strategic Competitiveness - Essay Example The company is present in UK, USA, Honk Kong, China, France, Germany, Netherlands, India, and Singapore along with the warehouses universally present. 1. Impact of Globalization and technology A flawless and integrated movement of services, goods and people round the globe is known as globalization which has made this whole world like a global village. This globalization can be a resultant of opening global economy and increased association and link between trades of different nations. Globalization also relates to the liberalization of the import protocols of countries and welcoming the foreign investments in the foundation sectors of a country’s economy (Wrigley 2000). Globalization acts like magnets to attract the global capital through opening economies of countries to multinational firms. There are several indicators of globalization namely internationalization, liberalization, universalization and westernization. All of these indicators are explained ahead. In the develo ping and the developed countries, globalization has and is still playing a very important role in bringing the world together and opening new horizons for prosperity in different aspects. 2. Two Models for superior profitability (Industrial Organization model and resource based model) For a large company like Aceto Corporation, the industrial organization model suggests that external environment dominant have an impact upon strategic actions of the firm. According to this model it is shown that the industry in which the organization has chosen to compete has a greater impact on the performance than the decisions that the managers take inside the company. There are several industrial properties that determine the performance of the company like barriers to entry, economies of scale, product differentiation, degree of concentration of the firms in the industry and diversification etc. (Veliyath & Fitzgerald 2000). According to the resource based model, the resources of the firm includ e the capabilities, assets the organizational processes the attributes, the knowledge the information that it possesses. All these resources serve as input for the firms. The resources must have four attributes according to the VRIN framework that includes Valuable, Rare, Inimitable and Non substitutable. The resources of Aceto are capable of bringing value to the firm and also serve as a source of competitive advantage. The resources are also unique and cannot be copied. This helps the company to win a sustainable competitive advantage. VRIN Framework By applying this framework it can be determined that whether the source of the resources that Aceto has are helping it to gain a sustainable competitive advantage or not. To serve this purpose the resources must be valuable, rare, inimitable and non-substitutable. According the analysis done it is found out that the items that Aceto sells are sold in a unique way and helps them win a competitive advantage. 3. Impact of Vision and Miss ion statements Mission and vision statements are two very important things that any company or organization focuses upon. These statements assist the companies to build growth, loyalty,