Summary Wheelen Chapter 6

Day by day the competition among the firms is getting more tight. It means that, to be a
business leader, every part of the firm should be find their best business strategic to win the
competition. One of the business strategic is finding the best firms strategy formulation. Strategy
formulation which often referred to as strategic planning or long-range planning is concerned with
developing a corporations mission, objectives, strategies, and policies.
To get this strategy formulation, a firm required doing an environmental scanning, after that
doing situational analysis which is the process of finding a strategic fit between external
opportunities and internal strengths while working around external threats and internal weaknesses.
And there are a powerful analytical set of tools for strategic analysis. one of tool is SWOT analysis
which is the most popular method for examining external and internal information. SWOT use to
describe the particular Strengths, Weaknesses, Opportunities and Threats that are potential strategic
factors for a specific company.
And the second tool is SFAS (Strategic Factors Analysis Summary) Matrix which
summarizes an organizations strategic factors by combining the external factors. The SFAS Matrix
as one way to identify a corporations strategic factors. And to identify a propitious niche is one way
to develop a sustainable competitive advantage using those strategic factors, TOWS Matrix is
needed.
Business strategy is composed of both competitive and cooperative strategy. So business
strategy very important, because business strategy can be competitive (battling against all
competitors for advantage) and/or cooperative (working with one or more companies to gain
advantage against other competitors). Efficiency must be needed tries to differentiate itself for
competitive purposes. This competitive strategies for outperforming other corporations in a particular
industry: lower cost and differentiation has been proposed by Michael Porter. strategies are called
generic because they can be pursued by any type or size of business firm, even by not for profit
organizations. So, as the external environment becomes more uncertain, an increasing number of
corporations are choosing to simultaneously compete and cooperate with their competitors.
Question 1
In gaining competitive advantage within an industry, which one is better between by battling against
other firms or working with other firms? What is pros dan cons for these two options, including short
and long term effect?
Question 2
There are some advantages and disadvantages being a first mover. What is the best suitable timing
tactic deals for the startup company in condition (the resources level is still limited, highly new
innovation) being a first movers or late movers? Why? And What are the consequences?