27 Mar BUS 7112 ASSIGNMENT 1 & 2 Module 1: Setting the Stage for Innovation

Module 1: Setting the Stage for Innovation

Module Introduction

In this Module, you will cover the concepts and ideas related to assessing and analyzing competitive advantage. You will use the assessment of competitive advantage with market domain analysis to assess an organization’s business climate. From this assessment, you will produce a Strength, Weakness, Opportunity, and Threat (SWOT) analysis, and then a Political, Economic, Social, Technical, Environmental, and Legal (PESTEL) analysis. These analytical tools will provide the foundation from which you will begin to examine strategic planning as they relate to organizational mission and vision.

Task List

These are your Module 1 tasks to complete.

Lesson 1

1. Read all Required Resources posted in the Course Resources.

2. Review Measuring, Assessing, and Strategy 

3. Complete Assignment 1: Analyze Organizational Capability Toward Competitive Advantage 

Measuring, Assessing, and Strategy

If you ask ten business professionals to define competitive advantage, you will likely get ten different answers. The problem for the person seeking to define and refine the term is that some definition of competitive advantage is needed as it influences strategic efforts (Cegliński, 2016). The first academic definition of competitive advantage was by Ansoff (1965, as cited in Sigalas, 2015). Ansoff’s definition, while singular, still serves as an essential and usable definition and is the foundation used in this course. Ansoff’s definition states that competitive advantage is “the isolated characteristics or particular properties of individual product markets which gave a firm a strong competitive position” (Sigalas, 2015, p. 2005). According to this definition, you could argue that the means of achieving a competitive position of strength may come through applying many different resources. It can come by technology, employees, pricing, agility, and many other elements. By this definition, each of these would be correct. However, those component elements are, by definition, still isolated characteristics as defined by Ansoff. Ultimately, the point is that whatever may be used to attain a competitive advantage must be understood, measured, and used strategically to ensure the highest probability of organizational success. It is not so much that one unique element may provide an advantage, but what an organization does strategically with an element or a mix of elements results in a competitive advantage.

An idea that may help solidify this concept is to look at it from a different perspective and then compare concepts. Begin with the idea of data. A single point of data provides very little useful value. However, a single data point may be combined with other data to create information. Information is important, but without a measure for understanding the value of that information, it continues to provide very little value. Figure 1 demonstrates this visually. By itself, a sing data point does not have context or meaning. With several data points, you have information, but again, it will have little meaning or value. When that information with all its data points is measured, in this case with an upper and lower control limit set, you have something valuable from which you can take action.

Figure 1

Data, information, and measure model example

The isolated characteristics or elements of strength noted in an organization are a lot like data or information without a measure. Unless analyzed against some measure, they have little value and do not result in understanding an organization’s competitive advantage. The assessment of information, like the assessment of strengths, is only relative when measured against something that estimates trends and comparisons. When decision-makers assess organizational strengths, they use the SWOT (Strength, Weakness, Opportunity, Threat) analysis or PESTEL (Political, Economic, Social, Technology, Environmental, and Legal) analysis. These tools help decision-makers to measure against internal and external measures, respectively, and thus competitive advantage can be assessed. 

In Lesson 2, you will use these tools to assess an organization. For now, note that these tools are rulers by which organizations can measure themselves and how they compare against themselves and their competitors; thus, competitive advantage emerges or can be defined. For organizations to succeed and have sustainable operations, they must plan to measure, measure, and then use their strengths towards open opportunities. Knowing, using, and measuring the success or failures of organizational efforts is the entire purpose of strategic planning. Organizational leaders who know their strengths can strategize how to capitalize on their strengths, diminish weaknesses, and work toward organizational sustainability and growth. 

Be sure to review this Lesson’s resources carefully. You are expected to apply the information from these resources when you prepare your assignments.

References

Cegliński, P. (2016). The concept of competitive advantages. Logic, sources, and durability. Journal of Positive Management, 7(3), 57-70.

Critical issues in business: Success and failure [Video file]. (2012). Segment 5. Maintaining Competitive Advantage.

Sigalas, C. (2015). Competitive advantage: The known unknown concept. Management Decision, 53(9), 2004-2016. 

Required Resources

Expanding Competitive Advantage Through Organizational Culture, Knowledge Sharing and Organizational Innovation

Azeem, M., Ahmed, M., Haider, S., & Sajjad, M. (2021). Expanding competitive advantage through organizational culture, knowledge sharing and organizational innovation. Technology in Society, 66. https://doi.org/10.1016/j.techsoc.2021.101635

The authors in this study investigated the linkages between organizational culture, knowledge sharing, and organizational innovation and their impact on competitive advantage.

The Past and Future of Competitive Advantage

Christensen, C. M. (2001). The Past and Future of Competitive Advantage. MIT Sloan Management Review, 42(2), 22.

As a thought leader on competitive advantage, Christensen provided insight into a number of timeless foundational concepts.

Sustainable Competitive Advantage  

https://eds.p.ebscohost.com/eds/detail/detail?vid=0&sid=e9977ba9-286e-4b81-be73-25d875572135%40redis&bdata=JkF1dGhUeXBlPXNzbyZzaXRlPWVkcy1saXZlJnNjb3BlPXNpdGU%3d#AN=89163997&db=ers 

Gould, M. (2021). Sustainable Competitive Advantage. Salem Press Encyclopedia.

A primer on sustainable competitive advantage.

Adaptability: The New Competitive Advantage

Mclaughlin, D. (2021). Adaptability: The New Competitive Advantage. Business NH Magazine, 38(11), 38–40.

A real-world example of one means of achieving competitive advantage.

Competitive Strategy and Its Execution: A Conceptual Note

Wasilewski, N. (2020). Competitive Strategy and Its Execution: A Conceptual Note. Competition Forum, 18(1/2), 22–29.

A critical analysis of competitive advantage strategy for organizational decision making.

Assignment 1: Analyze Organizational Capability Toward Competitive Advantage

Background

As a visiting lecturer and DBA student, you have been asked to present a brief presentation to undergraduate business school students for this assignment. You have been invited by Dr. Garcia, who leads an entrepreneurship course, to give an introduction to the topic of competitive advantage. As you prepare your presentation, consider that these students may not yet know or understand the concept of competitive advantage. Review the general term and concept, provide at least three examples of specific companies and their respective competitive advantages, and then review how a business can explore and identify its competitive advantage. 

Instructions

For this assignment, you will read the provided articles on competitive advantage. Your assignment for this Lesson is to record a presentation discussing what you learned about competitive advantage and a transcript of the dialogue from your presentation. You will use PowerPoint with recorded video or audio for this assignment.

Option 1:

Using Microsoft PowerPoint, you will provide a review of yourself, with embedded audio, presenting your review of competitive advantage. Your presentation should follow a presentation with no more than five (5) PowerPoint slides (not including the title slide). You will also create a transcript of your spoken dialogue from your presentation. You will include the references in proper APA format in your presentation on a references page at the end of your transcript document. You do not need to cite your sources within the content of your video verbally.

Length: Your video should be no more than 7 minutes.

References: Include at least three scholarly resources, but no more than one from the Lesson readings.

Your submission should demonstrate thoughtful consideration of the ideas and concepts presented in this Lesson and provide new thoughts and insights relating directly to this topic. Your response should reflect graduate-level understanding and presentation. 

 

Lesson 2

1. Read all Required Resources posted in the Course Resources.

2. Review Organizational Capabilities 

3. Complete Assignment 2: Produce a SWOT and PESTEL Analysis for an Organization 

Lesson 2: Program Outline and Milestones/Academic Goal-Setting

Lesson Introduction

To effectively plan and execute for sustainable strategic growth, business leaders must establish a baseline. The baseline serves as the measure of where a company is in relationship to its market, competitors, and expectations of performance.

Organizational Capabilities

SWOT Analysis. SWOT analysis is one of the first tools used to create a baseline. The SWOT analysis elements are Strengths, Weaknesses, Opportunities, and Threats. A business strategist uses these elements to understand the internal and external factors that help identify competitive advantages, risks, and opportunities. For each of the components of the SWOT, there are questions you should ask. Please consider that these questions are guides to encourage thinking and do not include all potential elements.

 

Some general guidelines for conducting a SWOT analysis are:

 

• Strengths and weaknesses should be viewed from an internal organizational perspective. From the organization looking outward.

• Opportunities and threats should be viewed from an external perspective. From the outside of the organization looking inward.

• Strengths and Opportunities should be viewed by how they are helpful to organizational success.

• Weaknesses and threats should be viewed from the perspective of how they may harm organizational success.

  Helpful to the organization Harmful to the organization

Internal Focus Strengths

1. What does your organization do very well?

2. How do you differ from your competitor?

3. What knowledge, skillsets, or talents do you have that make you different than your competition?

4. Etc. Weaknesses

1. What does your company not do well?

2. What does your competitor do better, cheaper, or more efficiently than your company?

3. What are your company’s resources, knowledge, or skills limitations?

4. Etc.

External Focus Opportunities

1. What emerging opportunities can your company capitalize on?

2. What underserved markets can you reach?

3. What efficiencies can be improved to reduce operating expenses?

4. Etc. Threats

1. What new competitors, technologies, or emerging trends could erase a competitive advantage?

2. What political, social, or buyer trends exist or are emerging?

3. What, if any, changing consumer trends are cause for concern?

4. Etc.

PESTEL Analysis. Once you have created a SWOT, the next step is to conduct a PESTEL analysis. PESTEL stands for Political, Economic, Social, and Technological. (Note, sometimes it is listed as PESTLE, but the analysis elements are the same.) Performing a PESTEL analysis helps strategic planners to assess those external factors, contributors, or impacts on the performance of an organization. For each of the elements of the PESTEL, there are questions you should ask. Please consider that these questions are guides to encourage thinking and do not include all potential factors or problems.

Political

1. What regulatory, legislative, or political requirements exist or are changing that may affect the organization?

2. What governmental mandated requirements for existing that may affect competitive advantage?

3. Etc. Economic

1. What currency, inflationary, and recessionary factors affect operations?

2. What, if any, effect does high or low employment or unemployment numbers have?

3. Etc.

Society

1. How do societal trends like generational preferences, aging, or environmental concerns affect the organization?

2. How do societal forces like social media influence affect the organization?

3. Etc. Technology

1. What is the impact of technology trends on productivity or as introduced by competitors?

2. Are there technologies that may affect manufacturing, production, or distribution?

3. Etc.

Environmental

1. How do climate, weather, and environmental policies affect the organization?

2. How do product lifecycle management, recycling, and pollution concerns affect the organization?

3. Etc. Legal

1. How do intellectual property, employment, and consumer protection laws affect the organization?

2. How do health and safety, antitrust, or discrimination laws affect the organization?

3. Etc.

The SWOT and PESTEL are not one-time transactions. As trends change, companies are required to change to adapt. Thus, a SWOT and PESTEL are snapshot assessments of where an organization is, who an organization is, and what potential factors may be assessed at one moment. From a strategic planning perspective, company decision-makers may make scheduled periodic reviews and updates to their SWOT and PESTEL analyses.

To facilitate a better understanding of the interconnected nature of the SWOT and the PESTEL, the image below provides a primary visual reference. The simple relationships or interconnected points are provided as a general guide because there are countless ways that the SWOT and PESTEL can be used as connected and indispensable strategy tools.

It is important to note that while the SWOT and PESTEL are often used in for-profit enterprises, they are just as valuable in non-profit enterprises. Ultimately, non-profit entities should consider using these tools to ensure the most significant opportunity for meeting organizational goals.

Be sure to review this Lesson’s resources carefully. You are expected to apply the information from these resources when you prepare your assignments.

Required Resources

• SWOT Analysis

Harmon, A. (2022). SWOT analysis. Salem Press Encyclopedia.

A primer on SWOT analysis elements and considerations.

• Cisco Systems SWOT analysis

Cisco Systems, Inc. SWOT Analysis. (2022). Cisco Systems, Inc. SWOT Analysis, 1–7.

A real-world example of an industry SWOT analysis.

• The Origins of SWOT Analysis

Puyt, R. W., Lie, F. B., & Wilderom, C. P. M. (2023). The origins of SWOT analysis. Long Range Planning. https://doi.org/10.1016/j.lrp.2023.102304

A review of the origin and value of SWOT in strategic planning.

• PEST Analysis

Walsh, J. (2021). PEST Analysis. Salem Press Encyclopedia.

PEST analysis primer.

• A PESTEL And SWOT Impact Analysis on Renewable Energy Development in Togo

Kansongue, N., Njuguna, J. & Vertigans, S. (2023). A PESTEL and SWOT impact analysis on renewable energy development in Togo. Frontiers in Sustainability, 3. https://doi.org/10.3389/frsus.2022.990173

Real-world example of a SWOT and PESTEL analysis for the country of Togo.

Assignment 2: Produce a SWOT and PESTEL Analysis for an Organization

Instructions

For this Lesson, you will produce a PowerPoint presentation that includes a SWOT and PESTEL analysis for one of the following companies:

• Papa John’s International

• Urban One

• Applebee’s Restaurants, LLC

• American Express Company

• Skechers U.S.A., Inc.

• Axsome Therapeutics

• Reynolds American Inc.

• PPG Industries

• Wells Fargo & Company

• Bloomberg L.P.

• Hermes International SA.

• RLJ Lodging Trust

Using the examples in the reading and the formatting above, you will create a SWOT and PESTEL analysis for your chosen organization. To create your analysis, you will be expected to assess the academic sources provided in the course for this Lesson and other appropriate self-researched market sources. Upon completing your SWOT and PESTEL, you will take one element from each analysis and provide two slides presenting your recommendations for an internal strategy to address the noted factor.

Your presentation should consist of at least the following:

• 1-2 slide: Introductory slide with the title of the presentation, the name of the company, your name, class name, and date

• 1-2 slides: SWOT analysis in figure form or bullets

• 1-2 slides: Presentation of your strategic suggestions for addressing one identified SWOT element

• 1-2 slides: PESTEL analysis in figure form or bullets

• 1-2 slides: Presentation of your strategic suggestions for addressing one identified PESTEL element

• 1-2 slides for closing and references

Length: Between 6-12 PowerPoint slides.

References: Include at least four scholarly or market resources.

Your presentation should demonstrate thoughtful consideration of the ideas and concepts presented in the course and provide well-developed thoughts and insights relating directly to this topic. Your response should reflect scholarly writing and current APA standards.