Capability Building and Enhancement PDF

CQHRM - Assignment 01
[Capability Building and
Enhancement

Table of Contents
1. Sustainable competitive advantage through workforce................................................2
1.1. Concept of sustainable competitive advantage.....................................................2
1.2. Policies and procedures........................................................................................2
1.2.1. Cost Leadership Strategy...............................................................................2
1.2.2. Differentiation Strategy.................................................................................2
1.2.3. Innovation strategy........................................................................................3
1.2.4. Quality enhancement strategy.......................................................................3
1.2.5. Cost reduction strategy..................................................................................3
2. Critically evaluation of management development and succession planning..............4
2.1. Succession planning and management development............................................4
2.2. Importance of succession planning and management development.....................4
2.3. Effective strategies to improve succession planning.............................................4
3. Recommendation and justification of “outline Talent Management strategy”......5
4. References....................................................................................................................6

1. Sustainable competitive advantage through workforce
1.1. Concept of sustainable competitive advantage
The term "sustainable competitive advantage" refers to a competitive advantage that
permits a company to outperform its competitors over time. Porter initially proposed
the idea of "continuous competition" in 1985 to optimize long-term competitive
advantage in a variety of competition systems (price, direction, focus, and focus). Porter,
on the other hand, does not explain what degree of competition is sustainable. Another
interpretation of competitive advantage includes long-term advantage, as well as the
utilization of important creative processes like asynchronous and simultaneous
brainstorming, which cannot be replicated. Industry does not use the word
"sustainable," but it is defined by the drawbacks of the two-way method. This indicates
that the firm might renounce its endorsement worth at any moment, and competitors
may have to reevaluate their creative planning processes in order to support this
organization (Schuler 2011).
Policies and procedures
Porter shows that companies can build sustainable competitive advantage by following
two approaches; financial management policies or
1.1.1. Cost Leadership Strategy
The pricing policy's major goal is to achieve a cheaper price than forecasted rivals.
Decreased costs result in lower costs, which may boost demand for the product or
service; but, if the product or service cannot be provided at a lower cost, its demand is
substantially reduced. Managers must evaluate services, equipment, expenses, and
other costs, as well as operating systems that decrease product or service costs, while
dealing with cost breaches. More investment in staff infrastructure, equipment, and
skills is typically required to reduce expenses.
1.1.2. Differentiation Strategy