Effective Competitive Strategies and Business-Level Planning
Develop a competitive advantage through business-level strategies like low-cost production, differentiation, and focus. Support corporate strategies with functional and operational plans to achieve sustainable growth and ROI. Explore organizational charts and strategic business units for effective management.
Uploaded on | 0 Views
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author. If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
You are allowed to download the files provided on this website for personal or commercial use, subject to the condition that they are used lawfully. All files are the property of their respective owners.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author.
E N D
Presentation Transcript
Business Level strategy /Competitive strategy Business Level strategy /Competitive strategy Competitive Strategy is defined as the long term plan of a particular company in order to gain competitive advantage over its competitors in the industry. It is aimed at creating defensive position in an industry and generating a superior ROI (Return on Investment).
Business Level Strategy Business Level Strategy How do we support the corporate strategy? How do we compete in a specific business arena? Three types of business level strategies: Low cost producer Differentiator Focus Four areas of focus Generate sustainable competitive advantages Develop and nurture (potentially) valuable capabilities Respond to environmental changes Approval of functional level strategies
Functional / Operational Level Strategy Functional / Operational Level Strategy An example. Business L.S.: Become the low cost producer of widgets Functional L.S. (Mfg.): Reduce manufacturing costs by 10% Operational (Plant #1): Increase worker productivity by 15% Functional: How do we support the business level strategy? Operational: How do we support the functional level strategy?
A Simple Organization Chart A Simple Organization Chart (Single Product Business) (Single Product Business) Business Level Strategy Business Research and DevelopmentManufacturing Human Resources Marketing Finance Functional Level Strategy
A Simple Organization Chart (Dominant or Related Product Business) Corporate Level Multi business Corporation Business Level Business 1 (Related) Business 2 (Related) Business 3 (Related) Functional Level Research and Development Human Resources Manufacturing Marketing Finance
An example of an Unrelated Product Business (Note: By itself, an SBU can be considered a related product business) SBU: a single business or collection of related businesses that is independent and formulates its own strategy A Ex.: G.E. (General Electric Corp.) (Multi-business) Corporation Strategic Business Unit 1 S.B.U. 2 Company 1 Co. 2 Co. 3 Division 1 Div. 2 Div. 3
An emergent view Emphasize the uncertainty of the future and suggest that setting out identify purpose and a single strategy and then develop a complete strategic plan may be fruitless task
What is emergent perspective to strategy A set of certain consistent actions that form an unintended pattern that was not initially anticipated or intended in the initial planning phase. For example, although unintended, adopting an emergent strategy might help a business adapt more flexibly to the practicalities of changing market conditions. Strategy Emerged outside the formal plan /Unintended pattern recognizing the changing conditions More planned approached/ Intended strategy
Strategic drift Strategic happens when organization strategy is no longer relevant to the external environment facing it Intended strategy through Deliberate planning process Environment forces ????? Strategic drift
What if you don t redefine your business purpose Strategic drift
Slow response to the market led to strategic drift
CASE STUDY 01- Ceylinco General Insurance Most admired motor insurance brand Most Innovative Motor Insurance solution- 2006 Brand Finance Ranking 2018 Conventional claim settlement process- CSLT I MONTH Brand proposition Hazel free Motor Insurance solution CONSUMER INSIGHTS Life style changes of the target consumer BRAND IMPACT 48% Market Share CUSTOMER PAIN POINTS
CASE STUDY 02- Redefining one day cricket Traditional ONE day cricket 8 hours, 100 overs Consumer Insight Redefine as a game of entertainment Brand proposition 20 /20 cricket International cricketers represent teams Bollywood stars as brand icons Cheer girls Brand Impact IPL Brand value USD 5.3 billon
CASE STUDY 03- Redefining traditional taxi service Traditional taxi service was not changed in last 45 years Consumer Insight Convenience taxi service Brand proposition Mobile taxi App What is next???
Question 01 March 2017 Perspective and emergent strategy can be contrasted by adapting Mintzberg s analogy. Explain the perspective approach to strategy formulation vs emergent approach to strategy formulation. What is the applicability of perspective rational approach over emergent view? Examine the applicability of the emergent approach to strategy formulation in today business context. ( 10 marks) Organization growth can be accelerated either organically or inorganically way. Explain the organization strategic directions as discussed by Igo Ansoff (1965) and expansion policy matrix. (10 Marks)
