Firm Resources and Sustainable Competitive Advantage Research Paper

Firm Resources and Sustainable Competitive Advantage - Research Paper Example Since strategic management influences each and every department of the company it, therefore, takes each and every department into consideration while developing the hardcore organizational goals and policies. Thus from this we can gather that strategic management is basically used to give a sense of direction to the organization, it provides each and every department the goals that it needs to achieve and a policy to work towards these goals, such as the importance of strategic management for an organization and hence this is handled directly by the board of directors or the CEO and rightly so. Many a companies have failed to make it right to the top because they have placed lesser emphasis on strategic management and they have also overlooked the fact, most conveniently, that for different situations there needs to be different strategy altogether and since each and every firm is different, much like individuals, the difference in cost structures and other factors should be taken i n to consideration while developing a strategy. For this to be done the company must keep a keen eye on the competitor i.e. a competitor analysis should be done whenever the need arises this is extremely important because in certain market structures there exists a high level of interdependency and hence the decisions one's competitor makes is of great importance to the company itself. The company needs to indulge in self-evaluation as well because to ascertain where the company is heading and what the current situation within the company is, a self-evaluation is of great importance. Self-evaluation also pinpoints the choke points or the points where the company needs to focus and remove the hindrances in order to move forward. The third player in any market is the government or the economy of that particular area and hence to have a successful strategy it is extremely important that company evaluates the economy on the macro as well as the microeconomic scale. As far as the iron ore and steel industry are concerned it is extreme ly important that the carry out the macro and micro-economic studies because this industry is the provider of raw material to a number of other industries and hence if the macroeconomic situation is good enough then the company would do better and it should also be able to predict what is going to happen in the next 6-12 months and hence plan accordingly because a steep fall in demand can cause huge losses to an industry that is as large as this.