Competitive Advantage

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Competitive Advantage
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What are bases for Competitive Advantage?

• Porters Generic Strategies
• Cost Leadership
• Differentiation

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What are bases for Competitive Advantage?

• Porters Generic Strategies
• Cost Leadership
• Differentiation
• Resource Based View
• Must have superior resources/capabilities

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How do you sustain a competitive advantage?

• Barney Your resources must be
• Valuable
• Rare
• Imperfectly imitatable
• Non-substitutable

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FOE and Competitive Advantage

• Key question How do key stakeholders help
  create competitive advantage?
• Society (Chapter 8)
• Partners (Chapter 7)
• Investors (Chapter 6)
• Customers (Chapter 5)
• Employees (Chapter 4)

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So, what are the major themes regarding Employees
(Chap 4)?
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Just as companies now track brand equity and
customer equity, they should also track employee
equity (FOE, p. 91)
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ACE Model of People Equity

• Alignment
• Of employees (and units) with organization
• Capabilities
• Mobilizing talent, information and resources to
  meet customer needs
• Engagement
• Passion for organizations as great places to
  work, purchase from, and even invest in

Schiemann, Reinventing Talent Management, in press
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Effects of People Equity
Schiemann, Reinventing Talent Management, in press
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Effects of People Equity
Schiemann, Reinventing Talent Management, in press
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HR Heroes
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• Everywhere Ive worked where I had to hire
  people, the rule of thumb among managers was to
  involve HR as little as possible in the process.
• - Stewart, Taking on the Last Bureaucracy (1996)

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Concerns About HR

• They dont know what theyre doing
• Paper-pushers
• Credibility
• Theyre out of the loop
• They dont understand my needs
• They get in the way
• Tell me what I CANT do