BUS 475/DQ Week 3

Question 1
What are the different strategies and what is different about them?
The main strategies commonly referred to as Generic and Grand. Generic strategies are used by companies to gain ground in a competitive market. This type has subcategories, which are cost leadership, differentiation, and focus. Firms that elect to use generic strategies, may offer cheaper prices for the same service as their competitors. For instance, when purchases a plane ticket, they can go with Southwest Airlines, which is a no frills company and get a lower price. Southwest opts to omit the bells and whistles (unlike Virgin Air) to offer low prices and gain a competitive edge within the airline industry. Generic strategies can be used in all industries and on any product type. Whereas Grand strategies are elaborate and over the top and change the course of business, because their focus is long term. This type has subgroups, which are market growth, product development, turnaround, liquidation. Firms that focus on market growth, want a low risk strategy and will growing market interest on a product already being marketed. The opposite of market growth is product development, where firms focus on research and development. Pharmaceutical companies are heavily into research and development. Turnaround strategy is just what it is, firms whose product is performing poorly, will switch how they present their product to generate interest. Liquidation is a desperate strategy, as it is a last resort for firms. When the economy slowed down, it was not uncommon to see furniture stores liquidating and closing their doors, because consumers was buying furniture. Looking the examples presented, I believe generic strategies would be most appropriate for my organization. Considering my company is introducing a product that is not a new invention, they will need to focus on offering a competitive price, to gain a share of the product market.

Question 2
What is the purpose of strategic objectives? What makes an effective strategic objective? What are examples of strategic objectives for your organization or one with which you are familiar?
Purpose of strategic objectives is to tell where the firm aims to go and the mission and vision statements support the objectives. The statements describe the driving force of the firm and its ultimate goals. One can look at the strategic objectives as the steps and accomplishments the firm completes in realizing their short term and long term goals.
An effective strategy is not hard to grasp and is shared by associates in the firm. An effective strategy paints a picture of the long term future of the firm and keeps them on target toward their objectives. Also an effective strategy is flexible, to allow for changes needed. Leadership should encourage input from internal teams (diverse) and identifies areas of competitive advantage. Lastly an effective strategy is developed after a thorough analysis of the internal and external environment.
Examples of strategic objectives are measuring the number of customer service calls within an 8 hour period or any objective the firm set as a goal. When I worked in customer service (many years back), management measured the time it took to disposition a call, and used that information to develop score cards for associates. The ultimate goal was to reduce the hold time for customers and increase the number of calls in an 8 hour shift. Also customers were solicited for survey’s, which allowed management to measure success and performance of individual associates.