...STRAMAGIC 23 November 2004 THEME : Strategy Policy Management Marketing Finance Dang Dinh Tram Master of Marketing Strategy & Management Human Resource CÁC CẤP ĐỘ CHIẾN LƯỢC Chiến lược có thể được xây dựng trên ba cấp độ khác nhau : • • • Chiến lược tổng thể của doanh nghiệp Chiến lược đơn vị kinh doanh Chiến lược bộ phận hay chức năng. Chiến lược có thể được xây dựng để nâng cao tính cạnh tranh hoặc đảm bảo sự tồn tại của doanh nghiệp, trong khi đó các sản phẩm và dịch vụ lại được phát triển ở cấp độ các đơn vị kinh doanh. Vai trò của doanh nghiệp là quản lý các đơn vị kinh doanh và phát triển sản phẩm sao cho các hoạt động sản xuất kinh doanh có tính cạnh tranh và có khả năng đóng góp vào việc thực hiện mục tiêu tổng thể của doanh nghiệp. Textron là một công ty thực hiện chiến lược đa dạng hóa. Sự thành công của Textron có được là do việc thực hiện tốt một nhóm các hoạt động kinh doanh ở nhiều ngành công nghiệp khác nhau. Textron đã phát triển bốn phân đoạn thị trường cơ bản : • • • • Chế tạo máy bay chiếm 32% doanh số. Sản xuất ôtô chiếm 25% doanh số Công nghiệp khác chiếm 39% doanh số Hoạt động tài chính chiếm 4% doanh số. Trong khi doanh nghiệp phải quản lý danh mục các hoạt động kinh doanh để tăng trưởng và tồn tại, thì sự thành công của doanh nghiệp đa dạng hóa lại phụ thuộc vào khả năng quản lý các dòng sản phẩm riêng biệt. Tương tự, khi mà trên thị trường có nhiều đối thủ cạnh tranh với Textron, thì doanh nghiệp cần phải chú ý đến các đối thủ cạnh...
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...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 in a research design. Second...
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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 inherently...
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...Corporate Level Strategy: SIPCHEM identified its vision which state as "Challenging assumption every day to discover and develop responsible solution, enhancing quality of life for generation to come". The mission of SIPCHEM is "To grow our capability and reach by constantly pushing the boundaries that inspire, enhance and sustain excellence". The vision and the mission of SIPCEM give us idea of how the company sets its strategy and plan to achieve its objectives. SIPCHEM sets its strategy depending on the following elements; * Increasing the production capacity and optimizing operation capability for affiliate plant. * Developing long-term relationships with vendors and clients to minimize the operational costs gaining competitive advantage. * Continuity of development and improvement in quality of products through R&D operations and applications by the best international standards. * Reducing costs to enhance competitiveness among the competitors. * Long-term investment by increasing the efficiency and capability to work of Saudi manpower which reflects positively on company’s performance. * Expansion in the variety of SIPCHEM products via investments in downstream projects and other projects associated with the industry. The main strategy of SIPCHEM is focusing on enhancing core competence, building new capability and extending geographically while maintaining the quality and efficiency in production. SIPCHEM analyzes available investment...
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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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...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 strategies that are used...
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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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...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 and furnishings...
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...Business Level Strategy Terdapat 2 kategori pilihan strategik (Strategic Choice) yaitu: 1. Business-Level Strategy, yaitu tindakan yang diambil perusahaan untuk memperoleh keunggulan kompetitif dalam pasar atau industri tunggal. 2. Corporate-Level Strategy, yaitu tindakan yang diambil perusahaan untuk memperoleh keunggulan kompetitif dengan beroperasi dalam berbagai (multiple) pasar atau industri dalam waktu yang bersamaan. Kedua business level strategi ini sering juga diistilahkan dengan generic business strategies. Cost Leadership Perusahaan yang memilih strategi bisnis cost leadership fokus unutk memperoleh keunggulan kopetitif dengan cara mengurangi komponen biaya dibawah semua kompetitornya. Sumber – sumber cost advantages: 1. Size differences and economies of scale Economies of scale baru disebut ada ketika peningkatan dalam ukuran perusahaan (diukur dalam term volume produksi) diasosiasikan dengan biaya yang menurun (diukur dalam term biaya produksi rata-rata per unit produksi). Sumber-sumber economies of scale: a. Volume of production and specialized machines b. Volume of production and the cost of plant and equipment c. Volume of production and employee specialization d. Volume of production and overhead cost 2. Size differences and diseconomies of scale Sebagaimana halnya economies of scale dapat membangkitkan cost advantages untuk perusahaan yang lebih besar, diseconomies of scale yang penting pada dasarnya dapat meningkatkan biaya jika perusahaan...
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...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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...Case Study I: Chery Automobile Company Situation Analysis Chery Automobile Company, an inexpensive car manufacturer attempt to expand its capacity and enter into a developed country with an expectation to be strong enough to compete internationally and become a global car maker. SWOT Analysis |Strengths |Weaknesses | | | | |Inexpensive car |Un qualified workforce in middle management | |Achieve low cost strategy |Sales satisfaction and customer service are below the industry | |Partner with a global automobile company like Chrysler |standard | |Strong relationship with suppliers |Imitation rather than Innovation | |Strong position in domestic market | | |Opportunities |Threats | | | ...
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...Development in the West Malaysia Most of labor force in Malaysia resides in the east Malaysia rural areas. However, the rural areas are not well developed with problems in health and hygiene sectors. These areas must be developed in order to provide a fully functional workforce. Controlling the growth Growth is always desirable for an industry like this. However, the growth rate must not exceed the limit where it cannot be supported by the infrastructure. Otherwise problems such as environmental degradation may occur. The growth rate in trade should be proportional to the infrastructure development of the country. o Further development of trade policies Trade policies shape the way international business is conducted. At the present time, Malaysia’s trade policies are developing to accommodate the growth of foreign trade. This area must be focused on to a greater extent, the authorities must look to lower more trade barriers, and reduce tariffs and taxes in order to follow an open market philosophy. Conclusion As a final thought, it can be said that investing in a foreign country is by itself a very risky endeavor. Analysis of Political, Social, Economical and Technological factors, measuring the competitive advantage of the host country and finally deciding on an appropriate entry mode are all equally important in the decision making process. Throughout this project, we have tried to analyze the profitability of investing in the palm oil production...
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...Business level strategy of Samsung Introduction Samsung Group (Samsung, 2016) is the largest group or the giant in Korea. Samsung Electronics is the biggest subsidiary of it, which initiated in 2011. A Korean consolidated company generates an average income of $ 150 billion every year. Samsung Electronics has 144 consolidated subsidiaries which 28 were recently combined at the end of 2014. Samsung Electronics contains three core divisions: • Device Solutions, a Business to Business (B2B) division handling semiconductors, various other chips and also Liquid Crystal Display (LCD) and other components.. • Digital Media & Communications (DM&C) is primarily a Business to Consumer (B2C) Company making computers, television sets and phones and also everything in between. • Samsung Advanced Institute of Technology (SAIT) is the research power of Samsung that likewise manages (at the moment) its brand-new companies. The three company divisions deal with nine business level units. Image 1 These all units are regulating by each different ways. Numerous marketing and advertising strategies, various marketing projects, different devices, various PhD owners, in addition to numerous purposes with goals For that reason these products are numerous business devices of Samsung Company. Important point is that there are numerous rivals for each system around the world with suitable competitors that needs to manage each unit by various business unit level techniques. Business Level Strategies ...
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...6 Corporate-Level Strategies Learning Objectives CONTENTS After reading this chapter, you should be able to: Introduction 1. Understand corporate strategy and identify its components. Corporate Strategy 2. Evaluate and identify different approaches to corporate strategy development. The Portfolio Approach 3. Understand how organisations can create and sustain the multibusiness advantage. Corporate Strategy and Adding Value 4. Appreciate how different corporate strategies could add value to a corporation. 5. Appreciate the complexities of developing corporate strategy at the international level. The Core Competence Approach Creating and Sustaining the Multibusiness Advantage Corporate-Level Strategy in the International Perspective Summary Study Questions References and Further Readings 109 110 CHAPTER 6: Corporate-Level Strategies Opening Case The case study organisation is one of the largest international hotel chains operating in more than one hundred countries with its internationally recognised brands. However, the company does not have a culturally diverse workforce at the senior level. It usually recruits executives to the key decision-making positions either from the United Kingdom or the United States. In this respect, it is defined as Anglo-Saxon. Some people argue that the company should get the best from other nationalities involved in the development of an organisation’s strategy. Different nationalities...
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