The paper "Strategic Management of Five International Companies" is a great example of a literature review on management. This essay examines the strategic management issues of five international companies offering multiple services and products to the international market spread over a larger geographical area. As sustainable competitive advantage required for organizational success is explored, the key areas investigated are; the level of business-level strategies, corporate-level strategy, and diversity. Organizations using strategic management systems bring about accelerated growth as they are able to successfully implement innovation and change as well as make faster decisions (Banham, 2010, p. 20).
Being critical to their success, a number of organizations especially international firms have integrated these systems to gain competitive advantage and leverage in the global market. Under Resource Based-View (RBV) of a firm, the criteria for judging resources of a firm include value, rarity, imperfect inimitability, and non-substitution (Bridoux, 2010). Since it focuses on the internal forces of the firm, RBV is an essential strategic management tool (Ferreira, 2011). This implies that the firm should devise strategies to improve effectiveness and efficiency, have unique resources and capabilities, social complexity, and lack ready substitutes for its products.
The five organizations chosen are; Chevron, Apple, Siemens, Coca-Cola, and Boeing selected based on industry and country of origin. Sustainable competitive advantage and organizational successWhen other firms are not only unable to implement a value-creating strategy but also incapable of duplicating the benefits of their firm’ s strategy, then the firm has sustained competitive advantage (Barney, 1991). The VRIO model shown in the diagram shows that the product is valuable when it is physically unique and not many firms are in possession.
It is rare if it possesses tacit knowledge and path dependency and is inimitable if having social complexity or causal ambiguity (Gupta, 2013). Lastly, the product or service is organized to exploit if it has no equivalent capabilities or strategic resources. ChevronChevron is an American multinational active in more than 180 countries and is headquartered in San Ramon, California. The company’ s primary activities include the exploration of oil and gas and marketing and the refining of gasoline (Chevron, 2014). Major products are petrochemicals, additives, lubricants, and fuels.
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