The decisions a company makes on its way to creating, maintaining and using its competitive advantages are business-level strategies. A strategic business unit can consist of a product line, division, or other profit centers that can be planned separately from the other business units of the company. After evaluating the company’s product line, target market and competition, a small business owner can better identify where her competitive advantage lies. The strategy formulation phase at the business level deals with positioning of the business against rivals, strategy need to be changed according to the expected changes in the demand and Influence the nature of competition through vertical integration and political actions. There are three generic strategies which are cost leadership, differentiation, and focus that can be implemented at the business unit level in order to create a competitive advantage for the company.
Strategic planning gives a clear framework with criteria for us to make day-to-day decisions. It also helps to identify fragmentary and unaligned choices and personal value judgments. This strategic planning encourages the commitment of the entire HO in order to achieve the planned results and this is why it is an important element in institutional cohesion. An organization that has better strategic planning and applies it consistently can help to raise up corporate reputation. A strategic plan is the systematic way that describes how your company applies the chosen strategy.
Superficially, there are four types of the competitive strategy that can applied. What are the four types of the competitive strategies? 1. Cost leadership Cost leadership is a type of strategy that make a company to offer a low-cost product or services for the customer and produce a large
Understanding Business Strategies and Corporate Strategies. In every business, whether it is big or small, there will be two strategies that must be implemented at one stage of its existence in the business world. These strategies are known as Business and Corporate Strategies. The Business Strategy is made up of completely different things compared to the Corporate Strategy. A small business working or producing in a single industry must develop a competitive advantage if it is to be profitable you can gain competitive advantage by outperforming your competition in some aspect of business to produce your goods or services at a lower cost.
This requires leaders to allocate the necessary resources and to design the organization to bring the intended strategies to reality. As we will see in the next section, this is an ongoing, evolving process that requires a great deal of interaction among these three processes. Second, the essence of strategic management is the study of why some firms outperform others. Thus, managers need to determine how a firm is to compete so that it can obtain advantages that are sustainable over a lengthy period of time. That means focusing on two fundamental questions: How should we compete in order to create competitive advantages in the marketplace?
Focus Every strategy must have a focus and the organization profile and/or the value curve must clearly show it. 3.4.2. Divergence When the strategy is reactive to keep up with competition, it loses its uniqueness. Applying the four actions, the organizations differentiate their profiles and the value curve will stand apart from competitors. 3.4.3.
Given the five (5) strategic planning models presented by McNamara (1997-2006) and Kriemadis & Theakou (2007), an organisation may adopt one or a combination of these models – Basic, Issue/Goal-based, Alignment, Scenario and Organic/Self-organising, when executing their strategic planning process. While this strategy change cycle serves as a guide, the ownus is with the public manager to apply the most suitable model given the circumstances and goals to be achieved. Strategy Change Cycle or Ten-step process highlighted by Bryson (2004) was an upgrade from the eight-step process put forward by the said Bryson (1988) in an attempt to realise or even revise annaul Corporate or Business Plans. Being party to a recent planning process, this steps involved were executed as follows: 1) Commence and agree upon a strategic planning process – A common goal is the order of the day. To achieve this shared goal a wide cross-section was selected which guaranteed representation of all units, division and branch of the organization.
Growth strategy In the world of business there are different ways to grow and increase your profits in the process. Some examples of growth strategies are market penetration, market expansion, product expansion, diversification and by acquisition. Growth by acquisition for example is out of the question for us, as we don’t have the required funds to do so. So which one could we use as a new company? The most likely strategy for our company would be product expansion.
1.1. Prepare a report describing the typical functional areas that can be found in an organization. (Minimum 500 words) (P1.1) To reach the goal of profitability and manage the information of an organization, The organization management classified in to three hierarchical levels such as Strategic level, Tactical level, Operational level ( Top to Bottom). Organizational Levels Strategic Level Strategic level represents the top level management of the organization. In this level Managers are the main characters who involving to take the main decisions which directly impact with the organization goals.
Strategic level Strategic level decisions have made commercial bank for one of the best bank in srilanka.strategic level managers is examining where our bank is nowadays? As well as they process the bank’s mission and vision and bank’s future aims. Strategic team doing to long term plan and strategic team consists of helping the organization to gather, analyze and organize information. If we see who are coming in the strategic level team first is the Strategic level manager. Strategic level manager: composed of a comparatively small group of people, top management is responsible for the overall management of an organization.