A strategy is the model or plan that incorporates an organization’s main policies, action progressions, and goals into a dependable whole. Besides that, it is the way and compass of an organization long time ago, which accomplished improvement for the organization during its pattern of resources contained by a demanding situation, convene the needs and wants of markets and fulfill stakeholder prospection. The strategy of the organization is to match between its internal capacities and its external associations. Business Strategy Hierarchy Strategies subsist at some levels in whichever organization and collection from the generally business or grouping of businesses throughout individuals working. 1. Corporate Strategy Corporate Strategy is the general idea and possibility of the business to meet up stakeholder opportunity. This strategy is a critical level as it’s deeply influenced by shareholder in the business and operates to conduct strategic decision making during the dealing. Corporate strategy is frequently Continue reading
Strategic Management Basics
Competitive Differentiation Strategy – Meaning, Areas, Factors and Drivers
An organization that adopts a differentiation strategy seeks to distinguish itself from competitors through the quality of its products or services. Organizations that successfully implement a differentiation strategy are able to charge more than competitors because customers are willing to pay more to obtain the extra value they perceive. For example in case of Rolex they pursue a differentiation strategy, Rolex watches are handmade precious metals like gold or platinum and stainless steel and are subject to strenuous tests of quality and reliability. The firm’s reputation enables it to charge thousands of dollars for its watches. Firms use differentiation strategy to achieve a competitive advantage by providing unique products and these products attributes high quality and innovations. Differentiation is not just limited to the product but it also covers the delivery system and many other factors. Firms provide additional services to its customers with these differentiation characteristics which brings more Continue reading
Strategy Change Cycle: An Effective Strategic Planning Approach
A strategic change cycle is mainly utilized to correlate the planning process of an organization with the vision, mission and values of an organization. This implies that an organization should focus developing its strategies that may assist it to accomplish its long run vision. This will assist the organization in managing the entire organization in a strategic manner in order to gain a sustained growth in the future. The key objective of the strategic change cycle is to make sure that the organization continues to provide maximum value to the stakeholders by undertaking the right strategies at the right time. With the help of the strategic change cycle, the organization should also ensure that a proper vigilance is kept on the internal and external environment to understand the future challenges and opportunities. Hence, this is one of the key concepts that may assist an organization to gain success. 10 Steps Continue reading
Analysis of Resource Based View of Strategy
The relationship between firm’s resources and performance are always the crucial area of interest in strategic management. Resource based view (RBV) highlights the internal environment of the firm in crafting strategy to accomplish a sustainable competitive advantage in it. Resource in RBV can be defined in an extremely broad way. Concepts like dynamic capabilities, entrepreneurship and management are usually regarded as strategic resources. Similarly, RBV also has been defined as stocks of available factors that are owned and controlled by the firm, these factors can be classified into physical, reputational, organizational, financial, human intellectual and technological, which are transformed into final products or services efficiently and effectively. Resource Based View can be treat as the ‘best’ strategy route in the development of a firm strategy, because RBV analyze and explain resources of the firms to grasp how organizations accomplish sustainable competitive advantage. In addition, Resource Based View centralize on the Continue reading
Motives for Mergers and Acquisitions
Mergers and acquisitions are strategic decisions leading to the maximization of a company’s growth by enhancing its production and marketing operations. They have become popular in the recent times because of the enhanced competition, breaking of trade barriers, free flow of capital across countries and globalization of business as a number of economies are being deregulated and integrated with other economies. A number of motives are attributed for the occurrence of mergers and acquisitions. In this section, we consider a number of different motives for mergers and acquisitions. 1. Synergies through Consolidation Synergy implies a situation where the combined firm is more valuable than the sum of the individual combining firms. It is defined as ‘two plus two equal to five’ (2+2=5) phenomenon. Synergy refers to benefits other than those related to economies of scale. Operating economies are one form of synergy benefits. But apart from operating economies, synergy may Continue reading
The Impact of Innovative Culture on Organizations
Growth creates a need for structure and discipline, organisation changes which can strain the culture of creativity that is so vital to future success. To sustain competitive advantage, companies need to institutionalize the innovation process; they need to create an internal environment where creative thinking is central to their values, assumptions and actions. Management changes and management generally is about implementation. When the managers of an enterprise feel pressured, the fear-driven response is generally to implement better and which generally results doing more of the same only quicker or cheaper. While this is great for doing more of the same, it is still the same and meanwhile everything else is changing — customer’s needs, technology, society, macroeconomics and geopolitics are all changing. Innovation is the engine of growth. It is also a mindset — meaning it is influenced by beliefs, values, and behavior. Company culture therefore has a huge influence Continue reading