In fourteen pages strategy planning is considered in an outline of some common methods before limiting the focus to core competencies. Twelve sources are cited in the bibliography.
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to make that vision a reality (Robinson, 2002). * Environment-based approach to strategy development, which is based on analyzing outside forces that can have an impact on the companys success
(Robinson, 2002). This approach usually includes an analysis using Porters five forces of 1.) Threat of New Entrants; 2.) Bargaining Power of Suppliers; 3.) Bargaining Power of Customers; 4.) Threat
of Substitutes; and 5.) Rivalry among Existing Firms (Porter, 1980). * Resource-based approach where the company analyses its resources and base strategy development on the effective use of resources (Robinson,
2002). * Capability-based approach, which involves determining the companys capabilities, enhancing these and basing their strategy development on their capabilities (Robinson, 2002). The SWOT (strengths, weaknesses, opportunities and threats) analysis
is beneficial for this approach. * Core-competencies approach, which is very similar to the capabilities approach in that the company determines its core competencies, enhances them and then uses this
as the basis of strategy development (Schultz). In point of fact, capabilities approaches are so similar to core competencies that the terms are often used synonymously. Furthermore, capabilities and core
competencies both fall under the umbrella of the resource-based approach. The relationship is intertwined and needs to be discussed together. Resource-Based Approach Robinson explained that the "resource-based approach to
strategy development is based upon the assumption that its the effective use of the organizations resources that should drive its strategy development" (2002). Organizations and companies that use this approach
look primarily at the assets within the company itself and how they can best use these assets to gain a competitive advantage (Robinson). The underlying premise of the resource-based approach
is that if the company uses its resources effectively, they will achieve success (Robinson). The resource-based approach is very similar to the capability-based approach to strategic planning (Robinson). This