Michael Porter's Generic Business Strategy

Executive Summary

In the following assignment, we will discuss about Generic Business Strategy, Organizational culture and Organizational structure. These are the three important factors of any organization without which achieving profit and organizational goal will not be possible. Every organization expands and earns profit if the management is working properly. In order to get success without chaos and tension different strategies have been made which are now followed by every organization irrespective of its size and nature. Further, in the assignment we have taken an Australian organization named Telstra, a telle communication organization which also uses the business strategies mentioned below. This Australian organization will make it

He developed these strategies so that any particular organization can gain competitive advantage in this dynamic market world. There are three generic business strategies namely- cost leadership, focus and differentiation. The following strategies states that how an organization practices competitive advantage in the chosen market scope. Porter’s strategies can be used by any form or size of organization. He asserted that an organization should use only one out of these three so that company can achieve organizational goals without wasting its precious resources. The most essential part of these strategies is that it tells about the interaction between product differentiation, cost minimization and market focus strategies. Porter’s strategies are very useful for any type of organization as it helps in decision making and in obtaining future gains in advance. Still many people claimed that use of these strategies leads to lack of flexibility and specificity. (The Economic

• Externally/ internally driven- Externally driven means product is made according to the choice and need of customers but internally driven means that experts feel they know what customer wants.

• Work centered/ employee- In employee centered organization management takes care of their employees more than work and opposite happens in a work centered organization.

• Professional/ local- In professional culture employees are known by their profession or the work they do but in local culture employees are known by their bosses and teammates.

• Strict work discipline/ easy going- Easy going organization means work is done informally without any time limit and restriction but strict work follows everything formally and on time. (Quick base)

Organizational