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– ## Unit3Assignment.docx
– ## Unit3StudyGuide.pdf
**## Unit3Assignment.docx**
Unit III Assignment
This four-page assignment measures your mastery of ULOs 1.1, 1.2, 1.3, 2.1, 2.2, 2.3, 3.1, and 3.2.
In Unit II you selected a firm
**(Johnson & Johnson)** with global operations and discussed the key points from its global strategy and your perceptions of the firm.
For this assignment you will follow the strategic management process by performing an environmental scan (analysis) of the firm selected in Unit II. Address the following prompts within your assignment:
1. Perform an
_external_ environmental analysis of the firm:
a. Macro-level PESTEL analysis
b. Industry environment: Porter’s five forces
c. Competitive environment
d. Strategic group analysis
2. Perform an
_internal_ analysis of the firm using the resource-based view:
e. What are the firm’s resources, capabilities, and competencies?
f. Does the firm possess valuable, rare, costly to imitate resources, and is it organized to capture value from those resources: VRIO analysis?
g. What role do leaders play in driving innovation?
3. Analyze the firm's current business-level and corporate-level strategies:
h. Business-level strategy: product market positioning
i. International strategy: geographic scope and mode of entry
j. How are these strategies being implemented? Examine how the firm incorporates sustainability into its planning.
k. How does innovation drive strategy and contribute to competitive advantage?
4. Analyze the firm’s performance:
l. Use both financial and market-based measures.
m. How does the firm compare to its competitors as well as the industry average?
n. What trends are evident over the past 3 to 5 years?
o. Consider the perspectives of multiple stakeholders” internal and external.
p. How does the firm possess a competitive advantage? How can it be sustained?
Be sure to include an introduction and a conclusion. Your assignment should be at least four pages. Use at least six sources to support your assignment; the course text must be used as a source for this assignment. Use APA Style to format this assignment and all references and citations.
**## Unit3StudyGuide.pdf**
BUS 6320, Global Strategic Management 1
Course Learning Outcomes for Unit III
At the end of this unit, you should be able to:
1. Compare and contrast evolving global strategic business models.
1.1 Describe strategic planning models.
1.2 Describe competitive advantage.
1.3 Differentiate between analysis, formulation, and implementation of strategies using the
analysis, formulation, implementation (AFI) framework.
2. Analyze the processes for formulating sustainable corporate business strategies.
2.1 Summarize the evolving importance of sustainability in strategic planning processes.
2.2 Examine key models that organizations use to overcome challenges .
2.3 Examine how sustainable competitive advantage drives corporate business strategies.
3. Summarize the role of innovation in strategic business planning.
3.1 Examine how innovation can assist firms in driving competitive advantage.
3.2 Analyze the role of leadership in driving innovation.
Required Unit Resources
Chapter 5: Shared Value and Competitive Advantage (ULOs 2.3 and 3.1)
This chapter examines competitive advantage and stakeholder capitalism.
Chapter 6: Business Strategy: Differentiation, Cost Leadership, and Blue Oceans (ULO 3.2)
This chapter examines differentiation strategy and cost drivers.
Unit Lesson
Lesson: Analyzing the Firm and Its Environment (ULOs 2.3, 3.1, and 3.2)
In Unit II, the concept of the Global Reporting Initiative may have been introduced in the live lecture as
framework firms are increasingly adopting to use sustainability to build competitive advantage.
This unit focuses on the importance of developing and maintaining competitive advantage as well as the
importance of a strategy that differentiates the firm—including sustainability—from the competition.
Chapter 5 Case for Review: Patagonia
As we begin this unit, read the Chapter 5 case Patagonia: A Pioneer in Creating Shared Value as it highlights
the importance of shared values in a firm. Consider the following questions as you read the case: Why do you
see the concept of shared values important in business? How has Patagonia built a firm that is known for its
focus on sustainability and the environment?
As a private firm, Patagonia has pursued a stakeholder strategy that is noted for its focus on the
environmental, social, and governance (ESG) elements. Rothaermel (2024) defines ESG as “a set of
standards beyond mere financial results on which companies are evaluated” (p. 171).
UNIT III STUDY GUIDE
Developing Competitive Advantage
BUS 6320, Global Strategic Management 2
UNIT x STUDY GUIDE
Title
Market Conditions
Market conditions in a business environment can influence an organization’s strategy to a great extent. For
example, a highly competitive market can force organizations to launch a new product or service every
quarter or at least once every year. This strategy allows them to go head-to-head with competitors and attract
new customers. However, if these organizations do not perform thorough research before launching their
products or services, they may incur significant losses. In some cases, these organizations may be forced out
of the market because of poor performance. It is vital for organizations to study the market where they are
competing and correctly identify their competition.
As presented in Unit II, performing a proper analysis of a company’s internal and external environments helps
in the identification of strengths and weaknesses. Based on this analysis, organizations must create a
competitive strategy. This strategy will enable them to outmatch the products or services of the competitors in
the market. It will also allow them to stay ahead of rival organizations for a longer period. Such analysis and
development of subsequent strategies give companies a competitive advantage over their rivals in the
market.
Competitive Advantage
Rothaermel (2024) notes that “the goal of a strategy is to gain and sustain a competitive advantage” (p.181).
In Exhibit 5.2: From Corporate Social Responsibility (CSR) to Creating Shared Value, changes are noted in
the perspectives of many firms as they evolved in the past few decades from CSR to creating shared value
(CSV). It is important to recognize that a firm has economic advantage when it creates more value than its
competitors. Economic value is the difference between value (V) and costs (C) or (V – C) (Rothaermel, 2024).
How do you see the CSV framework improving the competitive advantage of a firm?
Balanced Scorecard
The balanced scorecard (BSC) is a management tool. Essentially, the BSC is a series of strategic measures
and traditional financial measures that are used to get a holistic view of how an organization is performing
(Balanced Scorecard Institute, n.d.). Historically, the measure of business performance was related to profit.
The BSC is a more holistic approach that suggests that four areas or perspectives provides a more
appropriate picture of a firm. These four perspectives are (1) learning and growth, (2) business processes, (3)
customer perspectives, and (4) financial data. Often, the BSC is used in firms as a framework to drive
continuous improvement and a key part of improvement efforts often includes using key performance
indicators (KPIs). These KPIs can form a dashboard of performance metrics to include the most important
measures as identified by the organization. These KPIs include specific, measurable goals that may cascade
from high-level corporate goals to business unit goals to individual performance plans.
Triple Bottom Line
Another important framework related to understanding the competitive advantage concept is the triple bottom
line. This includes the dimensions of profits, people, and planet. Rothaermel (2024) notes that a focus on the
3 Ps “can lead to a sustainable strategy” (p. 197). As firms are developing their strategies, they are looking for
ways to differentiate themselves from the competition.
Business-Level Strategies
Strategic leaders must recognize that competitive advantage is reflected in superior firm performance. Review
the Exhibit 5.11: How to Measure and Assess Competitive Advantage in your textbook.
Having a business level strategy can assist in building competitive advantage. According to Rothaermel
(2024), the business level strategy asks the following questions:
• “Who are the customer segments we will serve?
• What customer needs, wishes, and desires will we satisfy?
• Why do we want to satisfy them?
• How will we satisfy them?” (p. 211)
BUS 6320, Global Strategic Management 3
UNIT x STUDY GUIDE
Title
Chapter 6 illustrates four generic business strategies in Exhibit 6.2: Strategic Position and Competitive Scope
Generic Business Strategies. They include cost leadership, differentiation, focused cost leadership, and
focused differentiation.
One concept introduced that reflects adding value to the operations of a firm is related to the learning curve.
Rothaermel (2024) notes that the learning curve can be described as “learning by doing drives down cost”
(p. 223).
Blue Ocean Strategy
The blue ocean strategy is the simultaneous pursuit of differentiation and low cost to open a new market
space and create new demand. It is about creating and capturing uncontested market space, thereby making
the competition irrelevant.
PwC Survey
PwC is a global consulting firm that annually surveys corporate CEOs. In 2023, a key finding of the PwC
survey is the need for firms to adapt to changing circumstances. The PwC (2023) survey suggests that fully
40% of respondents do not see their firms as economically viable in 10 years unless there is substantial
change in their organizations. This finding supports the importance of strategic management.
Summary
In summary, one aspect of developing a strategic plan is to look at the competition with a view to building a
comparative, competitive advantage. Increasingly, firms are seeing value and importance of advancing
sustainability as a factor that must be included in the strategic planning processes of a firm. In that regard, it
may be valuable to consider business level strategies to focus organizational efforts on developing
competitive advantage. Tools such as the BSC can assist by providing a measurement-based focus on
critical areas of the firm. Using BSC measures can assist in guiding the competitive advantage components
of the firm.
References
Balanced Scorecard Institute. (n.d.). Balanced scorecard basics. https://balancedscorecard.org/bsc-basics-
overview/
PwC. (2023). PwC’s 26th annual global CEO survey: Winning today’s race while running tomorrow’s.
https://www.pwc.com/gx/en/issues/c-suite-insights/ceo-survey-2023.html
Rawpixel. (n.d.). Character illustration of people with global network concept [Image]. Freepik.
https://www.freepik.com/free-vector/character-illustration-people-with-global-network-
concept_3585190.htm#query=strategy%20global%20business%20planning&position=2&from_view=
search&track=ais&uuid=eab5dd3f-267d-4ae8-9a3a-5381e987b5ac
Rothaermel, F. T. (2024). Strategic management (6th ed.). McGraw Hill.
https://online.vitalsource.com/#/books/9781265954574
Vector4stock. (n.d.). Business process illustration infographic of business structure from idea to successful
business [Image]. Freepik.
https://www.freepik.com/free-vector/business-process-illustration-infographic-business-structure-from-
idea-successful-business-
project_26195295.htm#query=strategy%20global%20business%20planning&position=34&from_view
=search&track=ais&uuid=eab5dd3f-267d-4ae8-9a3a-5381e987b5ac
BUS 6320, Global Strategic Management 4
UNIT x STUDY GUIDE
Title
Learning Activities (Nongraded)
Nongraded Learning Activities are provided to aid you in your course of study. You do not have to submit
them. If you have questions, contact your instructor for further guidance and information.
Activity: Case Study (Optional)
To understand the importance of differentiating a firm from the competition, read the Chapter Case 6 Part I,
the case of JetBlue Airways: En Route to the New Blue Ocean? As the case identifies, JetBlue Airways used
a high touch and high-tech approach that was designed to differentiate itself from other airlines. Note your
thoughts about this case in a personal journal.
Activity: Strategy Highlight (Optional)
Read the Chapter 6 Strategy Highlight 6.2: How JCPenney Sailed into a Red Ocean. In a personal journal,
note your thoughts on why and how this initiative failed.
– Course Learning Outcomes for Unit III
– Required Unit Resources
– Chapter 5: Shared Value and Competitive Advantage (ULOs 2.3 and 3.1)
– Chapter 6: Business Strategy: Differentiation, Cost Leadership, and Blue Oceans (ULO 3.2)
– Unit Lesson
– Lesson: Analyzing the Firm and Its Environment (ULOs 2.3, 3.1, and 3.2)
– Chapter 5 Case for Review: Patagonia
– Market Conditions
– Competitive Advantage
– Balanced Scorecard
– Triple Bottom Line
– Business-Level Strategies
– Blue Ocean Strategy
– PwC Survey
– Summary
– References
– Learning Activities (Nongraded)
– Activity: Case Study (Optional)
– Activity: Strategy Highlight (Optional)
**## Unit3StudyGuide.pdf**
BUS 6320, Global Strategic Management 1
Course Learning Outcomes for Unit III
At the end of this unit, you should be able to:
1. Compare and contrast evolving global strategic business models.
1.1 Describe strategic planning models.
1.2 Describe competitive advantage.
1.3 Differentiate between analysis, formulation, and implementation of strategies using the
analysis, formulation, implementation (AFI) framework.
2. Analyze the processes for formulating sustainable corporate business strategies.
2.1 Summarize the evolving importance of sustainability in strategic planning processes.
2.2 Examine key models that organizations use to overcome challenges .
2.3 Examine how sustainable competitive advantage drives corporate business strategies.
3. Summarize the role of innovation in strategic business planning.
3.1 Examine how innovation can assist firms in driving competitive advantage.
3.2 Analyze the role of leadership in driving innovation.
Required Unit Resources
Chapter 5: Shared Value and Competitive Advantage (ULOs 2.3 and 3.1)
This chapter examines competitive advantage and stakeholder capitalism.
Chapter 6: Business Strategy: Differentiation, Cost Leadership, and Blue Oceans (ULO 3.2)
This chapter examines differentiation strategy and cost drivers.
Unit Lesson
Lesson: Analyzing the Firm and Its Environment (ULOs 2.3, 3.1, and 3.2)
In Unit II, the concept of the Global Reporting Initiative may have been introduced in the live lecture as
framework firms are increasingly adopting to use sustainability to build competitive advantage.
This unit focuses on the importance of developing and maintaining competitive advantage as well as the
importance of a strategy that differentiates the firm—including sustainability—from the competition.
Chapter 5 Case for Review: Patagonia
As we begin this unit, read the Chapter 5 case Patagonia: A Pioneer in Creating Shared Value as it highlights
the importance of shared values in a firm. Consider the following questions as you read the case: Why do you
see the concept of shared values important in business? How has Patagonia built a firm that is known for its
focus on sustainability and the environment?
As a private firm, Patagonia has pursued a stakeholder strategy that is noted for its focus on the
environmental, social, and governance (ESG) elements. Rothaermel (2024) defines ESG as “a set of
standards beyond mere financial results on which companies are evaluated” (p. 171).
UNIT III STUDY GUIDE
Developing Competitive Advantage
BUS 6320, Global Strategic Management 2
UNIT x STUDY GUIDE
Title
Market Conditions
Market conditions in a business environment can influence an organization’s strategy to a great extent. For
example, a highly competitive market can force organizations to launch a new product or service every
quarter or at least once every year. This strategy allows them to go head-to-head with competitors and attract
new customers. However, if these organizations do not perform thorough research before launching their
products or services, they may incur significant losses. In some cases, these organizations may be forced out
of the market because of poor performance. It is vital for organizations to study the market where they are
competing and correctly identify their competition.
As presented in Unit II, performing a proper analysis of a company’s internal and external environments helps
in the identification of strengths and weaknesses. Based on this analysis, organizations must create a
competitive strategy. This strategy will enable them to outmatch the products or services of the competitors in
the market. It will also allow them to stay ahead of rival organizations for a longer period. Such analysis and
development of subsequent strategies give companies a competitive advantage over their rivals in the
market.
Competitive Advantage
Rothaermel (2024) notes that “the goal of a strategy is to gain and sustain a competitive advantage” (p.181).
In Exhibit 5.2: From Corporate Social Responsibility (CSR) to Creating Shared Value, changes are noted in
the perspectives of many firms as they evolved in the past few decades from CSR to creating shared value
(CSV). It is important to recognize that a firm has economic advantage when it creates more value than its
competitors. Economic value is the difference between value (V) and costs (C) or (V – C) (Rothaermel, 2024).
How do you see the CSV framework improving the competitive advantage of a firm?
Balanced Scorecard
The balanced scorecard (BSC) is a management tool. Essentially, the BSC is a series of strategic measures
and traditional financial measures that are used to get a holistic view of how an organization is performing
(Balanced Scorecard Institute, n.d.). Historically, the measure of business performance was related to profit.
The BSC is a more holistic approach that suggests that four areas or perspectives provides a more
appropriate picture of a firm. These four perspectives are (1) learning and growth, (2) business processes, (3)
customer perspectives, and (4) financial data. Often, the BSC is used in firms as a framework to drive
continuous improvement and a key part of improvement efforts often includes using key performance
indicators (KPIs). These KPIs can form a dashboard of performance metrics to include the most important
measures as identified by the organization. These KPIs include specific, measurable goals that may cascade
from high-level corporate goals to business unit goals to individual performance plans.
Triple Bottom Line
Another important framework related to understanding the competitive advantage concept is the triple bottom
line. This includes the dimensions of profits, people, and planet. Rothaermel (2024) notes that a focus on the
3 Ps “can lead to a sustainable strategy” (p. 197). As firms are developing their strategies, they are looking for
ways to differentiate themselves from the competition.
Business-Level Strategies
Strategic leaders must recognize that competitive advantage is reflected in superior firm performance. Review
the Exhibit 5.11: How to Measure and Assess Competitive Advantage in your textbook.
Having a business level strategy can assist in building competitive advantage. According to Rothaermel
(2024), the business level strategy asks the following questions:
• “Who are the customer segments we will serve?
• What customer needs, wishes, and desires will we satisfy?
• Why do we want to satisfy them?
• How will we satisfy them?” (p. 211)
BUS 6320, Global Strategic Management 3
UNIT x STUDY GUIDE
Title
Chapter 6 illustrates four generic business strategies in Exhibit 6.2: Strategic Position and Competitive Scope
Generic Business Strategies. They include cost leadership, differentiation, focused cost leadership, and
focused differentiation.
One concept introduced that reflects adding value to the operations of a firm is related to the learning curve.
Rothaermel (2024) notes that the learning curve can be described as “learning by doing drives down cost”
(p. 223).
Blue Ocean Strategy
The blue ocean strategy is the simultaneous pursuit of differentiation and low cost to open a new market
space and create new demand. It is about creating and capturing uncontested market space, thereby making
the competition irrelevant.
PwC Survey
PwC is a global consulting firm that annually surveys corporate CEOs. In 2023, a key finding of the PwC
survey is the need for firms to adapt to changing circumstances. The PwC (2023) survey suggests that fully
40% of respondents do not see their firms as economically viable in 10 years unless there is substantial
change in their organizations. This finding supports the importance of strategic management.
Summary
In summary, one aspect of developing a strategic plan is to look at the competition with a view to building a
comparative, competitive advantage. Increasingly, firms are seeing value and importance of advancing
sustainability as a factor that must be included in the strategic planning processes of a firm. In that regard, it
may be valuable to consider business level strategies to focus organizational efforts on developing
competitive advantage. Tools such as the BSC can assist by providing a measurement-based focus on
critical areas of the firm. Using BSC measures can assist in guiding the competitive advantage components
of the firm.
References
Balanced Scorecard Institute. (n.d.). Balanced scorecard basics. https://balancedscorecard.org/bsc-basics-
overview/
PwC. (2023). PwC’s 26th annual global CEO survey: Winning today’s race while running tomorrow’s.
https://www.pwc.com/gx/en/issues/c-suite-insights/ceo-survey-2023.html
Rawpixel. (n.d.). Character illustration of people with global network concept [Image]. Freepik.
https://www.freepik.com/free-vector/character-illustration-people-with-global-network-
concept_3585190.htm#query=strategy%20global%20business%20planning&position=2&from_view=
search&track=ais&uuid=eab5dd3f-267d-4ae8-9a3a-5381e987b5ac
Rothaermel, F. T. (2024). Strategic management (6th ed.). McGraw Hill.
https://online.vitalsource.com/#/books/9781265954574
Vector4stock. (n.d.). Business process illustration infographic of business structure from idea to successful
business [Image]. Freepik.
https://www.freepik.com/free-vector/business-process-illustration-infographic-business-structure-from-
idea-successful-business-
project_26195295.htm#query=strategy%20global%20business%20planning&position=34&from_view
=search&track=ais&uuid=eab5dd3f-267d-4ae8-9a3a-5381e987b5ac
BUS 6320, Global Strategic Management 4
UNIT x STUDY GUIDE
Title
Learning Activities (Nongraded)
Nongraded Learning Activities are provided to aid you in your course of study. You do not have to submit
them. If you have questions, contact your instructor for further guidance and information.
Activity: Case Study (Optional)
To understand the importance of differentiating a firm from the competition, read the Chapter Case 6 Part I,
the case of JetBlue Airways: En Route to the New Blue Ocean? As the case identifies, JetBlue Airways used
a high touch and high-tech approach that was designed to differentiate itself from other airlines. Note your
thoughts about this case in a personal journal.
Activity: Strategy Highlight (Optional)
Read the Chapter 6 Strategy Highlight 6.2: How JCPenney Sailed into a Red Ocean. In a personal journal,
note your thoughts on why and how this initiative failed.
– Course Learning Outcomes for Unit III
– Required Unit Resources
– Chapter 5: Shared Value and Competitive Advantage (ULOs 2.3 and 3.1)
– Chapter 6: Business Strategy: Differentiation, Cost Leadership, and Blue Oceans (ULO 3.2)
– Unit Lesson
– Lesson: Analyzing the Firm and Its Environment (ULOs 2.3, 3.1, and 3.2)
– Chapter 5 Case for Review: Patagonia
– Market Conditions
– Competitive Advantage
– Balanced Scorecard
– Triple Bottom Line
– Business-Level Strategies
– Blue Ocean Strategy
– PwC Survey
– Summary
– References
– Learning Activities (Nongraded)
– Activity: Case Study (Optional)
– Activity: Strategy Highlight (Optional)
**## Unit3Assignment.docx**
Unit III Assignment
This four-page assignment measures your mastery of ULOs 1.1, 1.2, 1.3, 2.1, 2.2, 2.3, 3.1, and 3.2.
In Unit II you selected a firm
**(Johnson & Johnson)** with global operations and discussed the key points from its global strategy and your perceptions of the firm.
For this assignment you will follow the strategic management process by performing an environmental scan (analysis) of the firm selected in Unit II. Address the following prompts within your assignment:
1. Perform an
_external_ environmental analysis of the firm:
a. Macro-level PESTEL analysis
b. Industry environment: Porter’s five forces
c. Competitive environment
d. Strategic group analysis
2. Perform an
_internal_ analysis of the firm using the resource-based view:
e. What are the firm’s resources, capabilities, and competencies?
f. Does the firm possess valuable, rare, costly to imitate resources, and is it organized to capture value from those resources: VRIO analysis?
g. What role do leaders play in driving innovation?
3. Analyze the firm's current business-level and corporate-level strategies:
h. Business-level strategy: product market positioning
i. International strategy: geographic scope and mode of entry
j. How are these strategies being implemented? Examine how the firm incorporates sustainability into its planning.
k. How does innovation drive strategy and contribute to competitive advantage?
4. Analyze the firm’s performance:
l. Use both financial and market-based measures.
m. How does the firm compare to its competitors as well as the industry average?
n. What trends are evident over the past 3 to 5 years?
o. Consider the perspectives of multiple stakeholders” internal and external.
p. How does the firm possess a competitive advantage? How can it be sustained?
Be sure to include an introduction and a conclusion. Your assignment should be at least four pages. Use at least six sources to support your assignment; the course text must be used as a source for this assignment. Use APA Style to format this assignment and all references and citations.
**## Unit3StudyGuide.pdf**
BUS 6320, Global Strategic Management 1
Course Learning Outcomes for Unit III
At the end of this unit, you should be able to:
1. Compare and contrast evolving global strategic business models.
1.1 Describe strategic planning models.
1.2 Describe competitive advantage.
1.3 Differentiate between analysis, formulation, and implementation of strategies using the
analysis, formulation, implementation (AFI) framework.
2. Analyze the processes for formulating sustainable corporate business strategies.
2.1 Summarize the evolving importance of sustainability in strategic planning processes.
2.2 Examine key models that organizations use to overcome challenges .
2.3 Examine how sustainable competitive advantage drives corporate business strategies.
3. Summarize the role of innovation in strategic business planning.
3.1 Examine how innovation can assist firms in driving competitive advantage.
3.2 Analyze the role of leadership in driving innovation.
Required Unit Resources
Chapter 5: Shared Value and Competitive Advantage (ULOs 2.3 and 3.1)
This chapter examines competitive advantage and stakeholder capitalism.
Chapter 6: Business Strategy: Differentiation, Cost Leadership, and Blue Oceans (ULO 3.2)
This chapter examines differentiation strategy and cost drivers.
Unit Lesson
Lesson: Analyzing the Firm and Its Environment (ULOs 2.3, 3.1, and 3.2)
In Unit II, the concept of the Global Reporting Initiative may have been introduced in the live lecture as
framework firms are increasingly adopting to use sustainability to build competitive advantage.
This unit focuses on the importance of developing and maintaining competitive advantage as well as the
importance of a strategy that differentiates the firm—including sustainability—from the competition.
Chapter 5 Case for Review: Patagonia
As we begin this unit, read the Chapter 5 case Patagonia: A Pioneer in Creating Shared Value as it highlights
the importance of shared values in a firm. Consider the following questions as you read the case: Why do you
see the concept of shared values important in business? How has Patagonia built a firm that is known for its
focus on sustainability and the environment?
As a private firm, Patagonia has pursued a stakeholder strategy that is noted for its focus on the
environmental, social, and governance (ESG) elements. Rothaermel (2024) defines ESG as “a set of
standards beyond mere financial results on which companies are evaluated” (p. 171).
UNIT III STUDY GUIDE
Developing Competitive Advantage
BUS 6320, Global Strategic Management 2
UNIT x STUDY GUIDE
Title
Market Conditions
Market conditions in a business environment can influence an organization’s strategy to a great extent. For
example, a highly competitive market can force organizations to launch a new product or service every
quarter or at least once every year. This strategy allows them to go head-to-head with competitors and attract
new customers. However, if these organizations do not perform thorough research before launching their
products or services, they may incur significant losses. In some cases, these organizations may be forced out
of the market because of poor performance. It is vital for organizations to study the market where they are
competing and correctly identify their competition.
As presented in Unit II, performing a proper analysis of a company’s internal and external environments helps
in the identification of strengths and weaknesses. Based on this analysis, organizations must create a
competitive strategy. This strategy will enable them to outmatch the products or services of the competitors in
the market. It will also allow them to stay ahead of rival organizations for a longer period. Such analysis and
development of subsequent strategies give companies a competitive advantage over their rivals in the
market.
Competitive Advantage
Rothaermel (2024) notes that “the goal of a strategy is to gain and sustain a competitive advantage” (p.181).
In Exhibit 5.2: From Corporate Social Responsibility (CSR) to Creating Shared Value, changes are noted in
the perspectives of many firms as they evolved in the past few decades from CSR to creating shared value
(CSV). It is important to recognize that a firm has economic advantage when it creates more value than its
competitors. Economic value is the difference between value (V) and costs (C) or (V – C) (Rothaermel, 2024).
How do you see the CSV framework improving the competitive advantage of a firm?
Balanced Scorecard
The balanced scorecard (BSC) is a management tool. Essentially, the BSC is a series of strategic measures
and traditional financial measures that are used to get a holistic view of how an organization is performing
(Balanced Scorecard Institute, n.d.). Historically, the measure of business performance was related to profit.
The BSC is a more holistic approach that suggests that four areas or perspectives provides a more
appropriate picture of a firm. These four perspectives are (1) learning and growth, (2) business processes, (3)
customer perspectives, and (4) financial data. Often, the BSC is used in firms as a framework to drive
continuous improvement and a key part of improvement efforts often includes using key performance
indicators (KPIs). These KPIs can form a dashboard of performance metrics to include the most important
measures as identified by the organization. These KPIs include specific, measurable goals that may cascade
from high-level corporate goals to business unit goals to individual performance plans.
Triple Bottom Line
Another important framework related to understanding the competitive advantage concept is the triple bottom
line. This includes the dimensions of profits, people, and planet. Rothaermel (2024) notes that a focus on the
3 Ps “can lead to a sustainable strategy” (p. 197). As firms are developing their strategies, they are looking for
ways to differentiate themselves from the competition.
Business-Level Strategies
Strategic leaders must recognize that competitive advantage is reflected in superior firm performance. Review
the Exhibit 5.11: How to Measure and Assess Competitive Advantage in your textbook.
Having a business level strategy can assist in building competitive advantage. According to Rothaermel
(2024), the business level strategy asks the following questions:
• “Who are the customer segments we will serve?
• What customer needs, wishes, and desires will we satisfy?
• Why do we want to satisfy them?
• How will we satisfy them?” (p. 211)
BUS 6320, Global Strategic Management 3
UNIT x STUDY GUIDE
Title
Chapter 6 illustrates four generic business strategies in Exhibit 6.2: Strategic Position and Competitive Scope
Generic Business Strategies. They include cost leadership, differentiation, focused cost leadership, and
focused differentiation.
One concept introduced that reflects adding value to the operations of a firm is related to the learning curve.
Rothaermel (2024) notes that the learning curve can be described as “learning by doing drives down cost”
(p. 223).
Blue Ocean Strategy
The blue ocean strategy is the simultaneous pursuit of differentiation and low cost to open a new market
space and create new demand. It is about creating and capturing uncontested market space, thereby making
the competition irrelevant.
PwC Survey
PwC is a global consulting firm that annually surveys corporate CEOs. In 2023, a key finding of the PwC
survey is the need for firms to adapt to changing circumstances. The PwC (2023) survey suggests that fully
40% of respondents do not see their firms as economically viable in 10 years unless there is substantial
change in their organizations. This finding supports the importance of strategic management.
Summary
In summary, one aspect of developing a strategic plan is to look at the competition with a view to building a
comparative, competitive advantage. Increasingly, firms are seeing value and importance of advancing
sustainability as a factor that must be included in the strategic planning processes of a firm. In that regard, it
may be valuable to consider business level strategies to focus organizational efforts on developing
competitive advantage. Tools such as the BSC can assist by providing a measurement-based focus on
critical areas of the firm. Using BSC measures can assist in guiding the competitive advantage components
of the firm.
References
Balanced Scorecard Institute. (n.d.). Balanced scorecard basics. https://balancedscorecard.org/bsc-basics-
overview/
PwC. (2023). PwC’s 26th annual global CEO survey: Winning today’s race while running tomorrow’s.
https://www.pwc.com/gx/en/issues/c-suite-insights/ceo-survey-2023.html
Rawpixel. (n.d.). Character illustration of people with global network concept [Image]. Freepik.
https://www.freepik.com/free-vector/character-illustration-people-with-global-network-
concept_3585190.htm#query=strategy%20global%20business%20planning&position=2&from_view=
search&track=ais&uuid=eab5dd3f-267d-4ae8-9a3a-5381e987b5ac
Rothaermel, F. T. (2024). Strategic management (6th ed.). McGraw Hill.
https://online.vitalsource.com/#/books/9781265954574
Vector4stock. (n.d.). Business process illustration infographic of business structure from idea to successful
business [Image]. Freepik.
https://www.freepik.com/free-vector/business-process-illustration-infographic-business-structure-from-
idea-successful-business-
project_26195295.htm#query=strategy%20global%20business%20planning&position=34&from_view
=search&track=ais&uuid=eab5dd3f-267d-4ae8-9a3a-5381e987b5ac
BUS 6320, Global Strategic Management 4
UNIT x STUDY GUIDE
Title
Learning Activities (Nongraded)
Nongraded Learning Activities are provided to aid you in your course of study. You do not have to submit
them. If you have questions, contact your instructor for further guidance and information.
Activity: Case Study (Optional)
To understand the importance of differentiating a firm from the competition, read the Chapter Case 6 Part I,
the case of JetBlue Airways: En Route to the New Blue Ocean? As the case identifies, JetBlue Airways used
a high touch and high-tech approach that was designed to differentiate itself from other airlines. Note your
thoughts about this case in a personal journal.
Activity: Strategy Highlight (Optional)
Read the Chapter 6 Strategy Highlight 6.2: How JCPenney Sailed into a Red Ocean. In a personal journal,
note your thoughts on why and how this initiative failed.
– Course Learning Outcomes for Unit III
– Required Unit Resources
– Chapter 5: Shared Value and Competitive Advantage (ULOs 2.3 and 3.1)
– Chapter 6: Business Strategy: Differentiation, Cost Leadership, and Blue Oceans (ULO 3.2)
– Unit Lesson
– Lesson: Analyzing the Firm and Its Environment (ULOs 2.3, 3.1, and 3.2)
– Chapter 5 Case for Review: Patagonia
– Market Conditions
– Competitive Advantage
– Balanced Scorecard
– Triple Bottom Line
– Business-Level Strategies
– Blue Ocean Strategy
– PwC Survey
– Summary
– References
– Learning Activities (Nongraded)
– Activity: Case Study (Optional)
– Activity: Strategy Highlight (Optional)
**## Unit3Assignment.docx**
Unit III Assignment
This four-page assignment measures your mastery of ULOs 1.1, 1.2, 1.3, 2.1, 2.2, 2.3, 3.1, and 3.2.
In Unit II you selected a firm
**(Johnson & Johnson)** with global operations and discussed the key points from its global strategy and your perceptions of the firm.
For this assignment you will follow the strategic management process by performing an environmental scan (analysis) of the firm selected in Unit II. Address the following prompts within your assignment:
1. Perform an
_external_ environmental analysis of the firm:
a. Macro-level PESTEL analysis
b. Industry environment: Porter’s five forces
c. Competitive environment
d. Strategic group analysis
2. Perform an
_internal_ analysis of the firm using the resource-based view:
e. What are the firm’s resources, capabilities, and competencies?
f. Does the firm possess valuable, rare, costly to imitate resources, and is it organized to capture value from those resources: VRIO analysis?
g. What role do leaders play in driving innovation?
3. Analyze the firm's current business-level and corporate-level strategies:
h. Business-level strategy: product market positioning
i. International strategy: geographic scope and mode of entry
j. How are these strategies being implemented? Examine how the firm incorporates sustainability into its planning.
k. How does innovation drive strategy and contribute to competitive advantage?
4. Analyze the firm’s performance:
l. Use both financial and market-based measures.
m. How does the firm compare to its competitors as well as the industry average?
n. What trends are evident over the past 3 to 5 years?
o. Consider the perspectives of multiple stakeholders” internal and external.
p. How does the firm possess a competitive advantage? How can it be sustained?
Be sure to include an introduction and a conclusion. Your assignment should be at least four pages. Use at least six sources to support your assignment; the course text must be used as a source for this assignment. Use APA Style to format this assignment and all references and citations.
**## Unit3StudyGuide.pdf**
BUS 6320, Global Strategic Management 1
Course Learning Outcomes for Unit III
At the end of this unit, you should be able to:
1. Compare and contrast evolving global strategic business models.
1.1 Describe strategic planning models.
1.2 Describe competitive advantage.
1.3 Differentiate between analysis, formulation, and implementation of strategies using the
analysis, formulation, implementation (AFI) framework.
2. Analyze the processes for formulating sustainable corporate business strategies.
2.1 Summarize the evolving importance of sustainability in strategic planning processes.
2.2 Examine key models that organizations use to overcome challenges .
2.3 Examine how sustainable competitive advantage drives corporate business strategies.
3. Summarize the role of innovation in strategic business planning.
3.1 Examine how innovation can assist firms in driving competitive advantage.
3.2 Analyze the role of leadership in driving innovation.
Required Unit Resources
Chapter 5: Shared Value and Competitive Advantage (ULOs 2.3 and 3.1)
This chapter examines competitive advantage and stakeholder capitalism.
Chapter 6: Business Strategy: Differentiation, Cost Leadership, and Blue Oceans (ULO 3.2)
This chapter examines differentiation strategy and cost drivers.
Unit Lesson
Lesson: Analyzing the Firm and Its Environment (ULOs 2.3, 3.1, and 3.2)
In Unit II, the concept of the Global Reporting Initiative may have been introduced in the live lecture as
framework firms are increasingly adopting to use sustainability to build competitive advantage.
This unit focuses on the importance of developing and maintaining competitive advantage as well as the
importance of a strategy that differentiates the firm—including sustainability—from the competition.
Chapter 5 Case for Review: Patagonia
As we begin this unit, read the Chapter 5 case Patagonia: A Pioneer in Creating Shared Value as it highlights
the importance of shared values in a firm. Consider the following questions as you read the case: Why do you
see the concept of shared values important in business? How has Patagonia built a firm that is known for its
focus on sustainability and the environment?
As a private firm, Patagonia has pursued a stakeholder strategy that is noted for its focus on the
environmental, social, and governance (ESG) elements. Rothaermel (2024) defines ESG as “a set of
standards beyond mere financial results on which companies are evaluated” (p. 171).
UNIT III STUDY GUIDE
Developing Competitive Advantage
BUS 6320, Global Strategic Management 2
UNIT x STUDY GUIDE
Title
Market Conditions
Market conditions in a business environment can influence an organization’s strategy to a great extent. For
example, a highly competitive market can force organizations to launch a new product or service every
quarter or at least once every year. This strategy allows them to go head-to-head with competitors and attract
new customers. However, if these organizations do not perform thorough research before launching their
products or services, they may incur significant losses. In some cases, these organizations may be forced out
of the market because of poor performance. It is vital for organizations to study the market where they are
competing and correctly identify their competition.
As presented in Unit II, performing a proper analysis of a company’s internal and external environments helps
in the identification of strengths and weaknesses. Based on this analysis, organizations must create a
competitive strategy. This strategy will enable them to outmatch the products or services of the competitors in
the market. It will also allow them to stay ahead of rival organizations for a longer period. Such analysis and
development of subsequent strategies give companies a competitive advantage over their rivals in the
market.
Competitive Advantage
Rothaermel (2024) notes that “the goal of a strategy is to gain and sustain a competitive advantage” (p.181).
In Exhibit 5.2: From Corporate Social Responsibility (CSR) to Creating Shared Value, changes are noted in
the perspectives of many firms as they evolved in the past few decades from CSR to creating shared value
(CSV). It is important to recognize that a firm has economic advantage when it creates more value than its
competitors. Economic value is the difference between value (V) and costs (C) or (V – C) (Rothaermel, 2024).
How do you see the CSV framework improving the competitive advantage of a firm?
Balanced Scorecard
The balanced scorecard (BSC) is a management tool. Essentially, the BSC is a series of strategic measures
and traditional financial measures that are used to get a holistic view of how an organization is performing
(Balanced Scorecard Institute, n.d.). Historically, the measure of business performance was related to profit.
The BSC is a more holistic approach that suggests that four areas or perspectives provides a more
appropriate picture of a firm. These four perspectives are (1) learning and growth, (2) business processes, (3)
customer perspectives, and (4) financial data. Often, the BSC is used in firms as a framework to drive
continuous improvement and a key part of improvement efforts often includes using key performance
indicators (KPIs). These KPIs can form a dashboard of performance metrics to include the most important
measures as identified by the organization. These KPIs include specific, measurable goals that may cascade
from high-level corporate goals to business unit goals to individual performance plans.
Triple Bottom Line
Another important framework related to understanding the competitive advantage concept is the triple bottom
line. This includes the dimensions of profits, people, and planet. Rothaermel (2024) notes that a focus on the
3 Ps “can lead to a sustainable strategy” (p. 197). As firms are developing their strategies, they are looking for
ways to differentiate themselves from the competition.
Business-Level Strategies
Strategic leaders must recognize that competitive advantage is reflected in superior firm performance. Review
the Exhibit 5.11: How to Measure and Assess Competitive Advantage in your textbook.
Having a business level strategy can assist in building competitive advantage. According to Rothaermel
(2024), the business level strategy asks the following questions:
• “Who are the customer segments we will serve?
• What customer needs, wishes, and desires will we satisfy?
• Why do we want to satisfy them?
• How will we satisfy them?” (p. 211)
BUS 6320, Global Strategic Management 3
UNIT x STUDY GUIDE
Title
Chapter 6 illustrates four generic business strategies in Exhibit 6.2: Strategic Position and Competitive Scope
Generic Business Strategies. They include cost leadership, differentiation, focused cost leadership, and
focused differentiation.
One concept introduced that reflects adding value to the operations of a firm is related to the learning curve.
Rothaermel (2024) notes that the learning curve can be described as “learning by doing drives down cost”
(p. 223).
Blue Ocean Strategy
The blue ocean strategy is the simultaneous pursuit of differentiation and low cost to open a new market
space and create new demand. It is about creating and capturing uncontested market space, thereby making
the competition irrelevant.
PwC Survey
PwC is a global consulting firm that annually surveys corporate CEOs. In 2023, a key finding of the PwC
survey is the need for firms to adapt to changing circumstances. The PwC (2023) survey suggests that fully
40% of respondents do not see their firms as economically viable in 10 years unless there is substantial
change in their organizations. This finding supports the importance of strategic management.
Summary
In summary, one aspect of developing a strategic plan is to look at the competition with a view to building a
comparative, competitive advantage. Increasingly, firms are seeing value and importance of advancing
sustainability as a factor that must be included in the strategic planning processes of a firm. In that regard, it
may be valuable to consider business level strategies to focus organizational efforts on developing
competitive advantage. Tools such as the BSC can assist by providing a measurement-based focus on
critical areas of the firm. Using BSC measures can assist in guiding the competitive advantage components
of the firm.
References
Balanced Scorecard Institute. (n.d.). Balanced scorecard basics. https://balancedscorecard.org/bsc-basics-
overview/
PwC. (2023). PwC’s 26th annual global CEO survey: Winning today’s race while running tomorrow’s.
https://www.pwc.com/gx/en/issues/c-suite-insights/ceo-survey-2023.html
Rawpixel. (n.d.). Character illustration of people with global network concept [Image]. Freepik.
https://www.freepik.com/free-vector/character-illustration-people-with-global-network-
concept_3585190.htm#query=strategy%20global%20business%20planning&position=2&from_view=
search&track=ais&uuid=eab5dd3f-267d-4ae8-9a3a-5381e987b5ac
Rothaermel, F. T. (2024). Strategic management (6th ed.). McGraw Hill.
https://online.vitalsource.com/#/books/9781265954574
Vector4stock. (n.d.). Business process illustration infographic of business structure from idea to successful
business [Image]. Freepik.
https://www.freepik.com/free-vector/business-process-illustration-infographic-business-structure-from-
idea-successful-business-
project_26195295.htm#query=strategy%20global%20business%20planning&position=34&from_view
=search&track=ais&uuid=eab5dd3f-267d-4ae8-9a3a-5381e987b5ac
BUS 6320, Global Strategic Management 4
UNIT x STUDY GUIDE
Title
Learning Activities (Nongraded)
Nongraded Learning Activities are provided to aid you in your course of study. You do not have to submit
them. If you have questions, contact your instructor for further guidance and information.
Activity: Case Study (Optional)
To understand the importance of differentiating a firm from the competition, read the Chapter Case 6 Part I,
the case of JetBlue Airways: En Route to the New Blue Ocean? As the case identifies, JetBlue Airways used
a high touch and high-tech approach that was designed to differentiate itself from other airlines. Note your
thoughts about this case in a personal journal.
Activity: Strategy Highlight (Optional)
Read the Chapter 6 Strategy Highlight 6.2: How JCPenney Sailed into a Red Ocean. In a personal journal,
note your thoughts on why and how this initiative failed.
– Course Learning Outcomes for Unit III
– Required Unit Resources
– Chapter 5: Shared Value and Competitive Advantage (ULOs 2.3 and 3.1)
– Chapter 6: Business Strategy: Differentiation, Cost Leadership, and Blue Oceans (ULO 3.2)
– Unit Lesson
– Lesson: Analyzing the Firm and Its Environment (ULOs 2.3, 3.1, and 3.2)
– Chapter 5 Case for Review: Patagonia
– Market Conditions
– Competitive Advantage
– Balanced Scorecard
– Triple Bottom Line
– Business-Level Strategies
– Blue Ocean Strategy
– PwC Survey
– Summary
– References
– Learning Activities (Nongraded)
– Activity: Case Study (Optional)
– Activity: Strategy Highlight (Optional)