Strategic management Assignment Example | Topics and Well Written Essays - 2000 words - 1

Strategic management - Assignment Example It will be noted that competitive advantage is created when a company is able to make its products and services the preferred option for customers within a market where competitors are offering products and services of the same nature or kind (Carter, Daniel and Betty, 2006). For competitive advantage to be achieved, the need for a critical understanding and appreciation of what the customer wants is very important. This is because the customer is always the end user of the product and service that the company offers. With the immediate direction and scope where the company wants to prioritize the interest of customers in product and service innovation, there is every hope that competitive advantage will be created because the company will offer precisely what the customer wants from the hospitality and tourism industry that it is not getting from other competitors. QUESTION TWO The business approach to strategic management is selected as the most suitable framework for Thomas Cook G roup to maximize its strategic impact with key stakeholders. This business approach to strategic management framework is however made up of a number of strategic options that makes it very important for the company to be highly critical in its selection of an appropriate strategic. Generally, two strategic approaches namely sociological approach and industrial organizational approach will be identified. Though each of these two approaches will at any point in time help a company in achieving some level of strategic success with its stakeholders, the use of industrial organizational approach is opined as the optimum strategy among the suitable framework that can bring about strategic development with stakeholders. The reason for this point is that in the use of industrial organizational approach, companies are admonished to take up the combined use economic theory and assumptions. Under economic theory, considerations are base for key economic factors such as resource allocation, com petitive rivalry and economies of scale. Meanwhile, in the current global economic crunch, these economic factors are very important for the achievement of economic growth and development. This is because based on economic theory, the company will be offered the opportunity to naming its competitive rivalry and know how to rightly allocate its scarce resources in a manner that presents a better competition against the competitor. With reference to assumptions also, Thomas Cook Group will be allowed the use of rationality, profit maximization and self discipline principles to compete (Carter, Daniel and Betty, 2006). QUESTION THREE In the current state of global economic recession within which Thomas Cook Group is forced to compete and growth as a leader in the hospitality and tourism industry, the effective management of resources and competences would be the only remedy to ensure that the company survives the recession. This is because world economic crunch is generally associated with cut downs and limitations in resources and competences. This situation is created because the input into resource availability of companies hardly synchronize with the resource output that the company undertakes (Breiman et al, 2009). With the scarcity therefore, effective