EXPLAIN THE RELATIONSHIP BETWEEN STRATEGIC MANAGEMENT AND COMPETI...

121) Explain the relationship between strategic management and competitive advantage for firms. How can a firm achieve sustained competitive advantage?Answer: Strategic management is all about gaining and maintaining competitive advantage. Competitive advantage is anything a firm does especially well compared to rival firms. When a firm can do something that rival firms cannot do, or owns something that rival firms desire, that can represent a competitive advantage. Getting and keeping competitive advantage is essential for long-term success of an organization. A firm must strive to achieve sustained competitive advantage by 1) continually adapting to changes in external trends and events and internal capabilities, competencies and resources, and by 2) effectively formulating, implementing and evaluating strategies that capitalize upon those factors.Diff: 2 Page Ref: 8-9Objective: 1.07 Discuss how a firm may achieve sustained competitive advantage.Learning Outcome: Discuss strategies that companies use to acquire and maintain competitive advantages