Management Ethics Foundations Of Business Ethics 5

Download or read book Mission-based AlignmentTake Your Company To The Top And Keep It There written by Robert K. Bennett & William R. Lingar and published by Atlantic Publishers & Dist. This book was released on 2007 with total page 132 pages. Available in PDF, EPUB and Kindle. Book excerpt: In A Capitalist Economy, The Holy Grail Of Business Is A Sustainable Competitive Advantage, Which Is Defined By Michael Porter, A Harvard Business School Professor, As Follows: Sustainable Competitive Advantage (Sca) Exists When A Company Makes Economic Rents, That Is, Their Earnings Exceed Their Costs, Especially Including Cost Of Capital. That Means That Normal Competitive Pressures Are Not Able To Drive Down The Firm S Earnings To The Point Where They Cover All Costs And Just Provide Minimum Sufficient Additional Return To Keep Capital Invested. Most Forms Of Competitive Advantage Cannot Be Sustained For Any Length Of Time Because The Promise Of Economic Rents Drives Competitors To Duplicate The Competitive Advantage Held By Any One Firm. The Key To Sustainable Competitive Advantage Is Differentiation. You Must Offer Your Customer A Difference That Is Both Recognizable By And Valuable To That Customer. However, It Is Not Sufficient To Merely Offer Your Difference In Products Or Services, Because In Today S Environment, Those Differences Will Be Copied By Your Competitors Within One Or Two Years. In Order For Your Competitive Advantage To Be Sustainable, You Must Develop And Maintain A Unique, Customer-Focused, Business Model. Mission-Based Alignment Is A Step-By-Step Process For Developing And Maintaining This Unique And Uncopiable Business Model. Properly Developed And Maintained, This New Business Model Will Lead To Sustainable Competitive Advantage.