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A simple definition of strategy helps put the above into better context.
Johnson and Scholes (2005, pg. 9) define strategy as
The direction and scope of an organisation over the long term which
achieves advantage in a changing environment through its configuration of resources and competences with the aim of fulfilling stakeholder expectations.
The bottom-line of every strategy is wealth creation. Within this context the resources and competences that an organisation can tap into play a very fundamental role. Companies achieving competitive advantage do so because they have “capabilities that the others do not have or have difficulty in obtaining...
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