Title: “Maximizing Competitive Advantage: The Strategic Use of Artificial Intelligence in Organizations” “Exploring Strategic Flexibility: Real Options and Real Assets in Southwest Airlines’ Acquisition of AirTran”

BRIEF ON STRATEGIC
MANAGEMENT PAPER
Submit
a Strategic Management paper on the approved topic below:
# Using Artificial
Intelligence in an Organization
# Write on the Essay with guide from Topics and Strategic Management concepts driven by this approved Book: Strategic
Management & Competitive Advantage [CONCEPTS AND CASES SIXTH EDITION] By
Jay B. Barney and William S. Hesterly
PAPER
GUIDELINES
§  The intent of this
paper is for you to apply the topics of the course to your selected topic. §  You should synthesize
the material in a concise manner and demonstrate critical thinking.
§  It is
about ADDING VALUE to the content. PAPER
GUIDELINES
*  The intent of this paper is for you
to apply the topics of the course to your selected movie. *  You
should synthesize the material in a concise manner and demonstrate critical
thinking. It is about you ADDING VALUE to the content, not repeating it. Think
of it as a mini literature review. This is about you reporting back on what the
literature says – it is not an opinion piece. APA Rules and Guidelines
*  You must have at least 8 academic sources, including Strategic
Management & Competitive Advantage [CONCEPTS AND CASES SIXTH EDITION] By
Jay B. Barney and William S. Hesterly.
*  The paper must have a title page and a separate page for
references at the end. *  It is expected that the introduction comprises no more than 15% of
the paper, the research body is to be roughly 70% of the paper, and the
remaining 15% to be conclusion with application / reflection.
Evaluation for the Individual Paper and rubric is in the attached document.
TOPICS
OF THE COURSE taken from the text above, see attached document. Also see excerpts below.
Topic 1: What Is Strategy and
the Strategic Management Process
§  Review
of Walt Disney Company.
§  Strategy
Formulation and Implementation
Topic 2: Evaluating a Firm’s
External Environment
§  Industry Analysis: The Structure-Conduct-Performance
Model
§  PESTLE ANALYSIS: is
used widely to structure analysis of a company’s external environment, is an
acronym for the political, economic, sociocultural, technological,
environmental, and legal context(s) in which a company operates.
Topic 3: Evaluating a Firm’s
Internal Capabilities §  The
Resource Based View: Financial (cash, retained earnings), Physical (plant and
equipment, geographic location), Human (skills and abilities of individuals)
& Organizational (reporting structures, relationships)
§  VERY IMPORTANT: The Internal Analysis Tool: VRIO Framework Helps Managers Recognize Sources of Competitive Advantage
Topic 4:
Cost Leadership and Competitive Advantage
§ 
Organizational
Structure and Controls
Topic 5: Product Differentiation
Two Generic Business Level
Strategies Cost Leadership: • generate economic value by having
lower costs than competitors. Example: Wal-Mart Product Differentiation: • generate economic value by
offering a product that customers prefer over competitors’ product Example:
Harley-Davidso
Product Differentiation
A business level strategy is
intended to:
• increase the perceived value of the focal
firm’s products and/or services relative to the value of competitor’s products
and/or services • create a customer preference for
the focal firm’s products and/or services
Bases of Differentiation-Three
Categories:
1. Product Attributes • exploiting
the actual product 2. Firm–Customer Relationships •
exploiting relationships with customers 3. Firm Linkages • exploiting
relationships within the firm and/or relationships with other firms
•       A product differentiation strategy
must meet the VRIO criteria…
Is it Valuable?
Is it Rare? Is it costly to Imitate?  Is
the firm Organized to exploit it? …if
it is to create competitive advantage
Topic
6: Flexibility and Real Options
Business Level Strategies Options:
1.Cost leadership
2.Product differentiation (Both 1&2
require focus and commitment)
3.Strategic flexibility
Maintaining multiple strategic
options simultaneously the opposite of focus and commitment.
What Is Strategic Flexibility?
A firm has strategic flexibility when it can choose among
several strategic options. Southwest Airlines’ acquisition of AirTran    •Route expansion   •Geographic expansion
Real Options and Real Assets
A real option exists when a firm has the ability, but
not the obligation to invest in real assets of some type.
Real assets are tangible resources that can have an
impact on a firm’s production, including land, buildings, etc.