5.3 The Competitive Advantage Model (think best-fit)

Question 1

The Competitive Advantage Model ( Schuler and Jackson (1987) draw on Porters 3 key bases of competitive advantage namely:

Answer 1

1. Cost leadership = Cost reduction strategy
2. Differentiation through quality = quality enhancement strategy
3. Niche Markets = innovation strategy

Question 2

There are 2 perspectives of the competitive advantage model:

Answer 2

1. The needed role behaviours that HR practices and policies should promote are based on each of the strategies (cost reduction, quality enhancement and innovation).
2. Organisations should adopt HR strategies appropriate to their stage of development by asking 2 questions below:
   a. how can HR secure and retain the human resources that are necessary to maintain continued viability
   b. which policies and practices are more likely to contribute to sustained competitive advantage through the life-cycle

Question 3

Innovation strategy

Answer 3

1. Creative behaviour
2. Long term focus
3. Moderate concern for quality
4. Moderate concern for quantity
5. Greater risk-taking
6. High tolerance for ambiguity and unpredictability

Question 4

Quality Enhancement Strategy

Answer 4

1. Relatively predictable behaviour
2. Intermediate to long term focus
3. High quality
4. Modest concern for quality
5. High concern for process
6. Low-risk taking

Question 5

Cost Reduction Strategy

Answer 5

1. Relatively predictable behaviour
2. Short-term focus
3. Modest concern for quality
4. High concern for the quantity of output
5. Low-risk taking
6. High concern for stability