RUNNING HEAD: STRATEGIC MANAGEMENT AND STRATEGIC COMPETITIVENESS 1

Strategic Management and Strategic Competitiveness

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Strayer University

BUS 499 Business Administration Capstone

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April 18, 2013
STRATEGIC MANAGEMENT AND STRATEGIC COMPETITIVENESS 2

With offices in more than 30 countries, Red Hat, founded in 1993, is the world's leading provider of open source solutions, using a community-powered approach to provide reliable and high-performing technologies ("Red hat company," 2012). The five technologies are cloud, operating system, storage, middleware and virtualization. Globalization and technology have positively impacted Red Hat.
Some of the major suppliers of Red Hat are Adobe, Citrix, IBM and Apple. Building lasting relationships with suppliers is just as important as those with customers. If Red Hat cannot acquire supplies timely and at a good rate, they cannot meet deadlines and produce a product customers can afford. Media, such as The News & Observer, a Raleigh NC newspaper or another news outlet such as WRAL TV or WRAL radio are important secondary stakeholders for Red Hat. They will monitor and report to the public information about Red Hat. The company will strive to make sure the information given to the public is that of a positive nature. The communities STRATEGIC MANAGEMENT AND STRATEGIC COMPETITIVENESS 5 where we are located are also secondary stakeholders. Red Hat strives to hire locally to develop that area. Customer satisfaction as well as employee satisfaction can influence success and profits for the future. Turnover of employees cost a tremendous amount of money and will eat into the bottom line. Customer satisfaction is just as important. If you cannot provide a reasonable priced, well produced product, you will lose customers. Supplies will also determine or influence Red Hat’s bottom line. If Red Hat does not have a good, long term relationship with suppliers and cannot meet demands, they will lose customers. If these things happen, stockholders are going to become weary and may abandon their shares which