Competitive Advantage

COMPETITIVE
ADVANTAGE &
COMPANY’S BUSINESS
MODEL
COMPETITIVE ADVANTAGE
A COMPANY IS SAID TO HAVE A COMPETITIVE
ADVANTAGE OVER ITS RIVALS WHEN ITS
PROFITABILITY IS GREATER THAN THE AVERAGE
PROFITABILITY AND PROFIT GROWTH OF OTHER
COMPANIES COMPETING FOR THE SAME SET OF
CUSTOMERS. THE HIGHER ITS PROFITABILITY
RELATIVE TO RIVALS, THE GREATER ITS
COMPETITIVE ADVANTAGE WILL BE.
BUSINESS MODEL
A BUSINESS MODEL IS A MANAGERS'
CONCEPTION OF HOW THE SET BUSINESS MODEL
OF STRATEGIES THEIR COMPANY PURSUES
SHOULD WORK TOGETHER AS A CONGRUENT
WHOLE, ENABLING THE COMPANY TO GAIN A
COMPETITIVE ADVANTAGE AND ACHIEVE
SUPERIOR PROFITABILITY AND PROFIT GROWTH.
COMPETITIVE
ADVANTAGE &
COMPANY’S BUSINESS
MODEL
BUSINESS MODEL
A business model encompasses the totality of how a
company will:
Select its customers.

Define and differentiate its product offerings
Create value for its customers
Acquire and keep customers
Produce goods or services.
Lower costs.
Deliver goods and services to the market.
Organize activities within the company.
Configure its resources.
Achieve and sustain a high level of profitability.
Grow the business over time.
STRATEGIC MANAGERS
MANAGERS MUST LEAD THE
STRATEGY MAKING PROCESS. IN
MOST COMPANIES, THERE ARE TWO
PRIMARY TYPES OF MANAGERS:
GENERAL MANAGERS - BEAR

RESPONSIBILITY FOR THE OVERALL
PERFORMANCE OF THE COMPANY OR
FOR ONE OF ITS MAJOR SELF-
CONTAINED SUBUNITS OR DIVISIONS
STRATEGIC MANAGERS
FUNCTIONAL MANAGERS
RESPONSIBLE FOR SUPERVISING A

PARTICULAR FUNCTION, THAT IS, A
TASK, ACTIVITY, OR OPERATION, SUCH
AS ACCOUNTING, MARKETING,
RESEARCH AND DEVELOPMENT
(R&D), INFORMATION TECHNOLOGY,
OR LOGISTICS.
MANAGERIAL LEVELS
CORPORATE LEVEL MANAGERS

The corporate level of management occupy the apex of
decision making within the organization. It consists of the
Chief Executive Officer (CEO), other senior executives, and
corporate staff.
The CEO is the principal general manager. In consultation with

other senior executives, the role of corporate-level managers
is to oversee the development of strategies for the whole
organization.
CORPORATE LEVEL MANAGERS
This role includes:

defining the goals of the organization;
determining what businesses it should be in;
allocating resources among the different businesses;
formulating and implementing strategies that span individual
businesses, and providing leadership for the entire
organization; and
provide a link between the people who oversee the strategic
development of a firm and those who awn it (the
shareholders).
MANAGERIAL LEVELS
BUSINESS LEVEL MANAGERS
A business unit is a self-contained division (with its own

functions-e.g., finance, purchasing, production, and marketing
departments) that provides a product or service for a particular
market.
MANAGERIAL LEVELS
BUSINESS LEVEL MANAGERS

The principal general manager at the business level, or the
business-level manager, is the head of the division. The
strategic role of these managers is to:
translate the general statements of direction and intent

that come from the corporate level into concrete strategies
for individual businesses; and
business-level general managers are concerned with
strategies that are specific to a particular. business,
MANAGERIAL LEVELS
FUNCTIONAL LEVEL MANAGERS
Functional level managers are responsible for the specific

business functions or operations [human resources,
purchasing, product development, customer service, etc.) that
constitute a company or one of its divisions.
MANAGERIAL LEVELS

Thus, a functional manager's sphere of responsibility is:
generally confined to one organizational activity;
functional managers nevertheless have a major strategic

role: to develop functional strategies in their area that help
fulfill the strategic objectives set by business- and
corporate level general managers;and
MANAGERIAL LEVELS

functional managers provide most of the information that
makes it possible for business and corporate level general
managers to formulate realistic and attainable strategies.
Indeed, because they are closer to the customer than is the
typical general manager, functional managers themselves
may generate important ideas that subsequently become
major strategies for the company.
THANK YOU!!!

Competitive Advantage

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COMPETITIVE

Select its customers.

GENERAL MANAGERS - BEAR

RESPONSIBLE FOR SUPERVISING A

CORPORATE LEVEL MANAGERS

The CEO is the principal general manager. In consultation with

This role includes:

BUSINESS LEVEL MANAGERS

A business unit is a self-contained division (with its own

BUSINESS LEVEL MANAGERS

translate the general statements of direction and intent

FUNCTIONAL LEVEL MANAGERS

Functional level managers are responsible for the specific

FUNCTIONAL LEVEL MANAGERS

generally confined to one organizational activity;

functional managers nevertheless have a major strategic

FUNCTIONAL LEVEL MANAGERS

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