...Exploring Business Activity Scenario: Tesco’s core purpose is to create value for customers to earn their lifetime loyalty. (Source: www.tesco.com). Tesco is Cancer Research UK Charity of the Year for 2012. They aim is to raise around £10million to help find the cure for cancer but also help keeping families together by prolonging lives. Cancer Research is therefore the leading charity to help patients suffering with cancer. Task 1: There are different aspects of business activity in the United Kingdom’s economy; this involves the Primary sector, Secondary sector and Tertiary sector. Primary sector involves extracting raw products from natural resources for example farming. Secondary sector is the main sector in the economy this includes industrial manufacturers of finishing products from raw material this includes both light and heavy industries. An example of secondary sector involves making plastic from oil. The final business activity is tertiary, tertiary sector is a voluntary or non-profit sector of the economy. These provide services to individuals and businesses. The two organisations I am going to describe the purposes of are Tesco and Cancer Research UK. Tesco’s and Cancer Research Up are two very different types of businesses. Tesco’s is a profit organisation while cancer is a non-profit organisation. Profit organisations rely on keeping running costs to a minimum. These running costs are the day-today costs that are needed to help run the organisation...
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...Business-Level and Corporate Level Strategies General Motors (GM) is a public company based in the United States that is headquartered in Detroit, Michigan. In the year 2011, the company was able to acquire the title of the largest automaker in the world by achieving the highest number of vehicle unit sales since inception (General Motors, 2012). General Motors led global automobile unit sales for 77 consecutive years from 1931 through 2007; however, the company lost its position to Toyota, which has continued to dominate the market with GM standing at second. The core competencies of a corporate corporation are focused on ensuring that the business entity is able to satisfy the needs and preferences of their customers. This stands as the main determinant in realizing above average returns especially in a highly competitive business environment. This is achieved through business level strategies, which are strategies that outline the various actions to be taken in order to ensure that the company is able to provide value to its customers in addition to gaining the critical competitive advantage by utilizing its core competencies in specific, service markets or individual products. Business level strategy therefore pertains to the corporation’s firm position in its operating industry compared to its main competitors and the five forces of competition. One of the fundamental business level strategies that General Motors has employed is cost leadership. The company has...
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...lifestyle/boutique, signature, select services and extended stay. Marriott own chains such as Marriott Hotels & Resorts, Courtyard by Marriott, Residents Inn, Fairfield Inn, and Marriott Vacation Club International, BVLGARI, The Ritz Carlton just to name a few. The commonality between all of the properties that Marriott International owns is that they all have a clear business-level strategy that allows them to focus on particular customer groups. Analyze the business strategies for the corporation you chose to determine the business level strategy you think is most important to the long –term success of the firm and whether or not you judge this to be a good choice. Justify your opinion. Marriott business strategies vary depending on the lodging segment. Examples include the Residents Inn is focused on customers that need amenities that go beyond the average but allow the traveler to have a sense of freedom, like they are at home or the Marriott Vacation Club International, which is classified as a luxury timeshare operation. The Fairfield Inn chain is currently using a focused cost leadership business-level strategy. In Fairfield Inns, there are several things that allow the Marriott Company to control cost and offer accommodations at a reduced rate to customers. There are usually no full-scale restaurants within in the main hotel. This means that the company does not have to employ staff to run it, which is costly to the bottom line. Also, the company uses value linens...
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...fast food restaurants in the fast food industry serving around 68 million people daily, in over 118 countries. McDonald’s has a loyal based of customers who have been patronizing the establishment for many years, operated by a franchise agent, an affiliate or the corporation. McDonald’s business strategies has been said to be the best in the fast food industry, maintaining cost leadership while producing dependable food with great service. Today we see McDonald’s in a mature industry that uses product proliferation to meet many needs in the fast food industry while deterring new entrants (Hill and Jones, 205). McDonald’s prides their strategy by setting the standards with their products and within the industry as well. I feel that the strategy McDonald’s incorporates within the company is the best for them, setting the standard to be the best in the industry promotes the necessary competitive edge needed to ensure the company continues to delivery its winning edge products that keeps customers loyal to the name. McDonald’s is also known for their child meal concepts selling hamburgers French fries soft drinks breakfast items chicken sandwiches and deserts. McDonald’s business level strategy also responds to the competitive dynamics of the industry by innovating new products, such as the Snack Wrap, market penetration, such as into the...
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...Name: Khanjan Desai Roll Number: J060 Subject: Strategic Management Topic: Summary Article on Business Level Strategy In the pursuit of operationalising the concept of business-level strategy in research, Donald C. Hambrick explains that strategy is generally viewed as a pattern of important decisions that guides the organization in its relationships with its environment, affects the internal structure and processes of the organization, and centrally affects the organization's performance. Numerous variables (e.g., nature of the industry, product life cycle,other environmental attributes) can be introduced to enrich the array of possible strategy-performance theories to be tested. Miles and snow [1978] have systematically examined the linkage between business-level strategy and structure. The range of organizational processes and managerial activities that could be tested for their associations with business level strategies appears to be substantial. Research on business-level strategy has implicated basically four different approaches to operationalising the construct. First, some researchers have seen strategy as a situational art that can best be studied through in-depth case studies. When cases are used in an attempt to build theory, they likewise involve qualitative descriptions of business-level strategies. An attraction of textual characterizations of strategy is that they may be used when strategy is treated as a predictor, mediator, or criterion variable...
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...BUSINESS-LEVEL STRATEGY By Alan S. Gutterman 1 Abstract Growth is a key goal and objective for emerging companies and management must carefully determine the best way to combine the core competencies within a firm’s functional departments to provide the firm with the best opportunity for achieving and sustaining a competitive advantage in its chosen environment. This report focuses on the process of setting business level-strategy, which includes (1) selecting the domain(s) in which the firm will be competing for scarce resources (e.g., capital, personnel, technology, inputs and customers) and (2) positioning the firm in each chosen domain so that its function-based core competencies are most effectively leveraged to establish a competitive advantage. The overall goal of business-level strategy is to protect the firm’s position in its current domain and, if possible, enlarge the domain in which the firm can operate with a competitive advantage. I. Overview Senior executives and managers involved in the development and implementation of business-level strategies are tasked with identifying the core competencies within the various functional departments of the company and combining them in a way that provides the company with the best opportunity for achieving and sustaining a competitive advantage in its chosen environment. The key choices that must be made when setting business-level strategy include: (1) selecting the domain(s) in which the company will...
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...Business Level Strategies The low cost strategy emphasizes having the lowest cost but not necessarily the lowest price in the market. A firm attempting to realize a low cost strategy should stress resources that facilitate efficiency. A firm that has successfully achieved a low cost position will have the lowest cost relative to competitors. It can use such a position to either lower its prices and gain market share and sales from rivals or keep its price at the present market level and make more profit. The key idea is that cost and price are independent and this strategy is focused on cost. The differentiation strategy focuses on developing a unique product or a perception of a unique product that customers are willing to pay a premium for. If a firm is not receiving a premium price for its goods it is not a differentiator. If it is seeking to follow a differentiation strategy it should attempt to develop and enhance its resources that promote customer responsiveness, quality and innovation. Costs are still important because it could possibly be greater than the premium consumers are willing to pay. The focused strategy is serving the needs of a limited group or segment very well. Often times this is a remainder category for firms that clearly don’t have a cost advantage of some type nor receive a premium price for their product. A firm with this strategy must carefully consider its target market and what they desire. None of the three business level strategy is...
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...average returns. This is done through Business-level strategies. Business level strategies detail actions taken to provide value to customers and gain a competitive advantage by exploiting core competencies in specific, individual product or service markets. Business-level strategy is concerned with a firm's position in an industry, relative to competitors and to the five forces of competition. Customers are the foundation or essence of a organization's business-level strategies. Who will be served, what needs have to be met, and how those needs will be satisfied are determined by the senior management. Who are the customers? Demographic, geographic, lifestyle choices (tastes and values), personality traits, consumption patterns (usage rate and brand loyalty), industry characteristics, and organizational size. What are the goods and/or services that potential customers need? Knowing ones customers is very import in obtaining and sustaining a competitive advantage. Being able to successfully predict and satisfy future customer needs is important. (Perhaps one of Compaq's mistakes was not understanding who their real customer was and what that customer -- end user -- wanted.) How to satisfy customer needs? Organizations must determine how to bundle resources and capabilities to form core competencies and then use these core competencies to satisfy customer needs by implementing value-crating strategies. Business-Level Strategies There are four generic...
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...Lecture Week 7! Business Level Strategy! 2 ! 1 ! Learning Outcomes – Week 7! Be able to! • Identify Strategic Business units in Organisations! • Explain the different bases of achieving competitive advantage! • Explain the factors influencing the sustainability of competitive advantage! • Explain the relationship between competition and collaboration ! 3 ! Strategic Choices ! Exhibit III.1! 4 ! 2 ! Business Level Strategy - Outline! • Strategic business units! • Competitive advantage (strategy clock)! – Price-based! – Differentiation! – Hybrid and focus! • Sustainability of competitive advantage! • Co-operation and competition! • Game theory in competitive strategy! 5 ! Business Level Strategies! Exhibit 5.1! 6 ! 3 ! Strategic Business Units! A strategic business unit is a part of an organisation! for which there is a distinct external market for goods or services that is different from another SBU! • Opposing pitfalls in identifying SBUs! – Too many different products/markets means lack of focus! – Too few means not reflecting diversity of products/markets! 7 ! Criteria for Identifying SBUs! External! Same customer types! Same channels! Similar competitors! Internal! Similar products/ services! Similar technologies! Similar resources and competences! 8 ! 4 ! Bases of Competitive Advantage! • Competitive strategy! – The bases for achieving competitive advantage ! – The bases for providing best...
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...HELP SHEET 2.11 P1: Describe the recruitment documentation used in a selected organization The desired organisation we shall see regarding this matter is a famous departmental store in bangladesh. Agora is a renouned departmental store which is owned by Rahimafrooz Ltd. Agora founded in 1954 by Late A. C. Abdur Rahim. If agora decides on hiring employees for their many deparmental stores situated accross the whole of bangladesh they have to initially advertise this vacancy. There can be a number of ways to advertise this vacancy, out of the many a few may be via newspaper, posters, website, web adverts and existing employees. Hypothetically if we say the vacancy is for a cashier, in that case the recruitment process would be a lot quicker with a healthy number of curriculum vitae (cv) to choose from. The advert should state the job description and should specify the duties the position holds. It should also state the educational qualification and skills they require in the applicant. After the vacancy has been advertised, interested applicants will send their cv to the given address which will state their name, educational qualification, work experience, career objective and expectation, personal skills, a personal statement etc. on approval of the cv’s the preferred candidates will be notified by the employer for a interview. This is the part were the employer gets to meet up the candidates face to face and have a conversation with them and choose the best fitting...
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...tobacco, alcohol, fruits, vegetables, electrical goods, clothes, organic food. In Newport there are stores based at Spotty and Masalas. The type of ownership that my company has is public limited company. This means it is a large company with many employees. It has shares on the stock exchange and anyone over 18 can invest in a share. This will make anyone who has bought the share a part owner of the joint stock company. As Tesco is a joint stock company the shareholders want a good return on their capital and to receive a dividend each year. If the company went bankrupt then the owners would have to pay off all of their debts, this would even mean selling their houses and cars. The main objective of a business is to make a profit. http://www.markedbyteachers.com/as-and-a-level/business-studies/introduction- (Assessed-03.10.2014) Types of contract in Tesco * Tesco Indefinite contracts require some flexibility to be built into them to enable the employer to change the terms to meet changing conditions. * The term "temporary contract" can be used to describe a contract that is not expected to be indefinite. However, the usual employment rights apply. * A fixed-term contract is one that ends on a specified date or on the occurrence of a particular...
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...Unit 1: Business Environment | Assignment 3: The Impact of Business Environment on Organisations | For the attention of: Tracey baker | In this report I will talk how two businesses operate and function in two different economies. The report will also include a detailed outline on how political, legal, social factors affect both businesses in two economies. The two organisations may face challenges in the future and how political, legal and social factors may impact an organisation. P5 Tesco (UK) What is an economy? An economy is made of millions and millions of people making decisions, trading goods and services. The economy applies to everyone from individuals entities such as corporations and governments. The economy of a particular region or country is governed by its culture, law, history, and geography among other factors. There are three types of economies market economy, command economy and mixed economy. The economy is very influential on how good Tesco do in a financial year; so if there is a good economic environment the confident customers will be more willing to spend money than customers with low confidence, which means that Tesco is more likely to benefit if the customer confidence is high. Stages of high customer confidence can confidence can present opportunities for Tesco to expand or bring new products to the market. Low confidence of customer’s means that Tesco have to cut cost to maintain profits. The UK economy is currently in the...
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...(P4) Explain how both fiscal and monetary policy decisions have affected a selected business In this part of my assignment I will be explaining the use of fiscal and monetary policy and how these policies affect global/international organisation. The organisation I have chosen to refer to in this part of my assignment is Microsoft. Microsoft is an American multinational software corporation headquartered in, Washington that develops, manufactures, licenses, and supports a wide range of products and services related to computing including Laptops, computers, Xbox 360 and Xbox one. The company was famously founded by Bill Gates in 1975. Microsoft is the world's largest software maker measured by revenues and so far has made $77 billion up to now in 2013 alone. Fiscal policy Fiscal policy is the use of government expenditure and taxation to try to influence the level of economic activity. The varied use of raised and lowered fiscal policies can have a number of effects on customers, public sector organisations such as the NHS and Police and private limited organisations such as Tesco and Microsoft. Below I will describe how different fiscal policies will directly affect Microsoft and its customers. Cuts in income tax If the government fiscal committee decide to cut income tax then this has a direct effect on organisations because it means Microsoft will gain more disposable income and capital spending as some of their revenue income which would go to government is being...
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...Explain the role of promotion for Tesco The role of promotion for any business is important because they need make their product/services aware to everyone. Tesco’s methods using in achieving these affects may vary, depending on their goals, markets and industries. Tesco’s promotions include advertising, sales promotions, sponsorships and other strategies. Tesco’s need to make sure that when promoting products/services they target the correct consumers those who are more likely to buy their product. Increase brand awareness Above the line promotions like television, radio and newspapers help business increase brand awareness. This is because these types of promotions target many people, for example in the UK 84% of the population read the national newspapers. If a brand is seen by people on a regular basis then it will stick in their minds and consumers will know more about the product. When Tesco are selling a new product/service then they will be reaching out to a new market they have to explain to customers what they are offering. Brand awareness can be measured by market, regionally or nationally. It takes a lot of time for businesses to build their brand awareness levels that match established competitors. During special occasions like Christmas and Easter their advertising increases as people tend to buy more during these festive periods so they more they advertise their products the more they will sell. This will increase brand awareness because if they are advertising...
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...cash flow statement is concerned with the flow of cash in and cash out of the business. The statement captures both the current operating results and the accompanying changes in the balance sheet Operating Activities This tells how much income you make over the year and from this you can tell if you have a good cash flow and this is how you tell if you can get a loan from the bank because if you have a good cash flow then the bank will accept this with open arms and look to make money back in the process. Also, you can look at attracting investors instead of getting a loan this may work out cheaper for you. Operating activities include the production, sales and delivery of the company's product as well as collecting payment from its customers. This could include purchasing raw materials, building inventory, advertising, and shipping the product. A healthy cash flow means that you can pay for these. Financing Activities If the business has a healthy cash flow then they will be able to get a loan from the bank. Then the bank will look to make more money because they know the business can pay this back if they have a healthy cash flow statement for example if the company ask for £1,000,000 then the bank may look at this and say we will offer you £2,000,000 then this means the bank will make a profit back because of the interest on the money. Other sources of finance grants, finance, loans, business support eg mentoring, consultancy, funding for small and medium-sized businesses...
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