Sarbanes-Oxley Act: Competitive Strategies In Doing Business

The strategic management process implies sequential and interrelated activities, situation analysis (scanning and evaluating the current organizational content and internal environments), strategy formulation (developing and then choosing appropriate strategies), strategy implementation (putting strategies into action), and strategy evaluation (evaluating the implementation and outcome of strategies), leading to some outcome. These interrelated activities result in a set of strategies the organization uses in doing business. To manage strategically means to analyze the current situation, develop appropriate strategies, putting those strategies into action and then evaluating and changing those strategies as needed. The three main types of

The most common functional areas include product-operations (manufacturing), marketing, research and development, human resources, financial-accounting, and information systems technology and support. Keep in mind that each organization has its own unique functions. Competitive strategies also known as business strategies, are the goal directed plans and actions concerned with how an organization competes in a specific business or industry. The competitive strategies address the competitive advantages an organization currently has or wants to develop. Corporate strategies are goal directed plans and actions concerned with the choices of what businesses to be in and what to do with those businesses. The Sarbanes-Oxley Act is a U.S. federal law designed to protect investors by improving the accuracy and reliability of corporate disclosures. Sarbanes-Oxley mandated two areas of corporate governance reform: the role of the board of directors and the type and scope of financial reporting. In addition to expanding the role of board members, Sarbanes-Oxley also called for more disclosure and transparency of financial

They have three characteristics: they contribute to superior customer value, they are difficult for competitors to imitate, and can be used in variety of ways. Distinctive capabilities can lead to a competitive advantage. Any major value-creating capabilities organizations have that are essential to their business are core competencies. Although an organization’s capabilities are the source of its core competencies, the core competencies also contribute to improving and enhancing other organizational capabilities. Every organization has processes and routines to get work done. Any core competencies of an organization are created out of these routines and processes, accumulated knowledge, and actual work activities. If core competencies are established, they can, in turn improve and enhance other organizational capabilities and contribute to developing distinctive capabilities, which is what leads to competitive advantage. Past performance trends is one criterion that could be used to determine strengths and weaknesses. Looking at the trends could assess any organizational area that is measurable. Another criterion is how actual performance measures up against specific performance goals. Comparison against competitors will let the organization know how they stack up against those with whom they are competing for consumer dollars.