Submit Search
Upload
Chpt07
•
Download as PPT, PDF
•
0 likes
•
109 views
A
Arman Hassani
Follow
Managers and their role in Strategic decision making
Read less
Read more
Leadership & Management
Report
Share
Report
Share
1 of 27
Download now
Recommended
Business Math Chapter 7
Business Math Chapter 7
Nazrin Nazdri
Business strategy mc graw hill
Business strategy mc graw hill
frank45
Crafting And Executing Strategy
Crafting And Executing Strategy
Aygun Suleymanova
Teaming is Growing
Teaming is Growing
José Luis Muñoz
Ge Evo V11
Ge Evo V11
Sutarjo Sutarjo
Hrm10e ch03
Hrm10e ch03
kamelliachaichi
Strategic management-multiple-choice-questions SIDDANNA M BALAPGOL
Strategic management-multiple-choice-questions SIDDANNA M BALAPGOL
Siddanna Balapgol
Strategic intent
Strategic intent
Neha Monga
Recommended
Business Math Chapter 7
Business Math Chapter 7
Nazrin Nazdri
Business strategy mc graw hill
Business strategy mc graw hill
frank45
Crafting And Executing Strategy
Crafting And Executing Strategy
Aygun Suleymanova
Teaming is Growing
Teaming is Growing
José Luis Muñoz
Ge Evo V11
Ge Evo V11
Sutarjo Sutarjo
Hrm10e ch03
Hrm10e ch03
kamelliachaichi
Strategic management-multiple-choice-questions SIDDANNA M BALAPGOL
Strategic management-multiple-choice-questions SIDDANNA M BALAPGOL
Siddanna Balapgol
Strategic intent
Strategic intent
Neha Monga
Strategic intent By simran grewal
Strategic intent By simran grewal
SimranGrewal33
Stretegic intent final@ppt
Stretegic intent final@ppt
Ekhlaque Ahmed
Lo1
Lo1
Waleed Ad
Module 2
Module 2
Raju Raj
Conducting a Business Simulation
Conducting a Business Simulation
ScottMadden, Inc.
Bs 24dsfh
Bs 24dsfh
Rajib Rahman
Introduction to Strategy
Introduction to Strategy
Teaching Excellence
Ch 1 edited
Ch 1 edited
Mona AlOtaibi
Strategy Map Templates
Strategy Map Templates
Clive Keyte
Planning
Planning
Chandra Pandey
Keeping Business Momentum (PMI 2008)
Keeping Business Momentum (PMI 2008)
Hans Winterink
Bab 1 (p1)
Bab 1 (p1)
kim rae KI
global warming
global warming
MGM Model School,Ayiroor,Varkala,Kerala,India
Big data
Big data
Amin Salimian
training and development manager certification
training and development manager certification
Vskills
Adv402 application text
Adv402 application text
John C. Besley
Train station-instruction
Train station-instruction
Andrea Santibañez
Excellente-vrouwen
Excellente-vrouwen
BertJandeVisser
at Novo Nordisk
at Novo Nordisk
Mohammad ElAwady
Sxsw entrepreneur mindset v3
Sxsw entrepreneur mindset v3
MCHGBA
TBI 2014
TBI 2014
Regina Randall
ENGLISH IV
ENGLISH IV
Bryan Mejia
More Related Content
What's hot
Strategic intent By simran grewal
Strategic intent By simran grewal
SimranGrewal33
Stretegic intent final@ppt
Stretegic intent final@ppt
Ekhlaque Ahmed
Lo1
Lo1
Waleed Ad
Module 2
Module 2
Raju Raj
Conducting a Business Simulation
Conducting a Business Simulation
ScottMadden, Inc.
Bs 24dsfh
Bs 24dsfh
Rajib Rahman
Introduction to Strategy
Introduction to Strategy
Teaching Excellence
Ch 1 edited
Ch 1 edited
Mona AlOtaibi
Strategy Map Templates
Strategy Map Templates
Clive Keyte
Planning
Planning
Chandra Pandey
Keeping Business Momentum (PMI 2008)
Keeping Business Momentum (PMI 2008)
Hans Winterink
Bab 1 (p1)
Bab 1 (p1)
kim rae KI
What's hot
(12)
Strategic intent By simran grewal
Strategic intent By simran grewal
Stretegic intent final@ppt
Stretegic intent final@ppt
Lo1
Lo1
Module 2
Module 2
Conducting a Business Simulation
Conducting a Business Simulation
Bs 24dsfh
Bs 24dsfh
Introduction to Strategy
Introduction to Strategy
Ch 1 edited
Ch 1 edited
Strategy Map Templates
Strategy Map Templates
Planning
Planning
Keeping Business Momentum (PMI 2008)
Keeping Business Momentum (PMI 2008)
Bab 1 (p1)
Bab 1 (p1)
Viewers also liked
global warming
global warming
MGM Model School,Ayiroor,Varkala,Kerala,India
Big data
Big data
Amin Salimian
training and development manager certification
training and development manager certification
Vskills
Adv402 application text
Adv402 application text
John C. Besley
Train station-instruction
Train station-instruction
Andrea Santibañez
Excellente-vrouwen
Excellente-vrouwen
BertJandeVisser
at Novo Nordisk
at Novo Nordisk
Mohammad ElAwady
Sxsw entrepreneur mindset v3
Sxsw entrepreneur mindset v3
MCHGBA
TBI 2014
TBI 2014
Regina Randall
ENGLISH IV
ENGLISH IV
Bryan Mejia
CMA-415-AEN
CMA-415-AEN
R. Todd Christner
IV Mostra Cultural e Educativa
IV Mostra Cultural e Educativa
Ana Silva
Storyline (PLOT)
Storyline (PLOT)
Joeselle Nicole Cruz
Don xuan 2012
Don xuan 2012
Minh Anh Nguyen
Viewers also liked
(14)
global warming
global warming
Big data
Big data
training and development manager certification
training and development manager certification
Adv402 application text
Adv402 application text
Train station-instruction
Train station-instruction
Excellente-vrouwen
Excellente-vrouwen
at Novo Nordisk
at Novo Nordisk
Sxsw entrepreneur mindset v3
Sxsw entrepreneur mindset v3
TBI 2014
TBI 2014
ENGLISH IV
ENGLISH IV
CMA-415-AEN
CMA-415-AEN
IV Mostra Cultural e Educativa
IV Mostra Cultural e Educativa
Storyline (PLOT)
Storyline (PLOT)
Don xuan 2012
Don xuan 2012
Similar to Chpt07
Crafting and Implementing Strategy Plan
Crafting and Implementing Strategy Plan
soenarto soendjaja
Organizational structure,Group Structure
Organizational structure,Group Structure
Aashray For Everyone
Chapter 7
Chapter 7
Sitco
Chapter 02 Charting a Company's Direction-Its Vision, Mission, & Objectives.pptx
Chapter 02 Charting a Company's Direction-Its Vision, Mission, & Objectives.pptx
MehediHasan944698
CHAPTER 6Planning, Strategy, and Competitive Advantage.docx
CHAPTER 6Planning, Strategy, and Competitive Advantage.docx
mccormicknadine86
Chpt09
Chpt09
Mahadi Hasan Anonto
The strategic management process(an overview)
The strategic management process(an overview)
jawalala
Chapter 1
Chapter 1
Dikshit Singh
Lesson 2 part 1
Lesson 2 part 1
Dr.Manishankar Chakraborty
SIT- Chapter 1
SIT- Chapter 1
贤敬 张贤敬
International Competitive StrategyChapter 91.docx
International Competitive StrategyChapter 91.docx
normanibarber20063
5. Comprehensive Strategic Business Plan Template
5. Comprehensive Strategic Business Plan Template
Earl Stevens
HR StrategiesHR StrategiesMaurice HillHR Strategies1201.docx
HR StrategiesHR StrategiesMaurice HillHR Strategies1201.docx
pooleavelina
Chap011 budiling resource strength and capabilties
Chap011 budiling resource strength and capabilties
Ajit Kumar
Phea ch.10
Phea ch.10
DavinMon
When Worlds Collide by Karl Scotland
When Worlds Collide by Karl Scotland
Rally Software
Ibhar_cpm_insurance_vertical-Hyperthink_Kenya
Ibhar_cpm_insurance_vertical-Hyperthink_Kenya
Ravikumar Vetrivel
Im1013 Chapter 7
Im1013 Chapter 7
Chanpohlai
Strategic Planning first entry - that everybody should know
Strategic Planning first entry - that everybody should know
Abdullah Ahmed, PMP, RMP
Organiza and management slides
Organiza and management slides
aqua1814
Similar to Chpt07
(20)
Crafting and Implementing Strategy Plan
Crafting and Implementing Strategy Plan
Organizational structure,Group Structure
Organizational structure,Group Structure
Chapter 7
Chapter 7
Chapter 02 Charting a Company's Direction-Its Vision, Mission, & Objectives.pptx
Chapter 02 Charting a Company's Direction-Its Vision, Mission, & Objectives.pptx
CHAPTER 6Planning, Strategy, and Competitive Advantage.docx
CHAPTER 6Planning, Strategy, and Competitive Advantage.docx
Chpt09
Chpt09
The strategic management process(an overview)
The strategic management process(an overview)
Chapter 1
Chapter 1
Lesson 2 part 1
Lesson 2 part 1
SIT- Chapter 1
SIT- Chapter 1
International Competitive StrategyChapter 91.docx
International Competitive StrategyChapter 91.docx
5. Comprehensive Strategic Business Plan Template
5. Comprehensive Strategic Business Plan Template
HR StrategiesHR StrategiesMaurice HillHR Strategies1201.docx
HR StrategiesHR StrategiesMaurice HillHR Strategies1201.docx
Chap011 budiling resource strength and capabilties
Chap011 budiling resource strength and capabilties
Phea ch.10
Phea ch.10
When Worlds Collide by Karl Scotland
When Worlds Collide by Karl Scotland
Ibhar_cpm_insurance_vertical-Hyperthink_Kenya
Ibhar_cpm_insurance_vertical-Hyperthink_Kenya
Im1013 Chapter 7
Im1013 Chapter 7
Strategic Planning first entry - that everybody should know
Strategic Planning first entry - that everybody should know
Organiza and management slides
Organiza and management slides
Recently uploaded
Measuring True Process Yield using Robust Yield Metrics
Measuring True Process Yield using Robust Yield Metrics
CIToolkit
VIP Kolkata Call Girl Rajarhat 👉 8250192130 Available With Room
VIP Kolkata Call Girl Rajarhat 👉 8250192130 Available With Room
divyansh0kumar0
Reflecting, turning experience into insight
Reflecting, turning experience into insight
Wayne Abrahams
LPC Warehouse Management System For Clients In The Business Sector
LPC Warehouse Management System For Clients In The Business Sector
thomas851723
Call Us🔝⇛+91-97111🔝47426 Call In girls Munirka (DELHI)
Call Us🔝⇛+91-97111🔝47426 Call In girls Munirka (DELHI)
jennyeacort
Unlocking Productivity and Personal Growth through the Importance-Urgency Matrix
Unlocking Productivity and Personal Growth through the Importance-Urgency Matrix
CIToolkit
Fifteenth Finance Commission Presentation
Fifteenth Finance Commission Presentation
mintusiprd
原版1:1复刻密西西比大学毕业证Mississippi毕业证留信学历认证
原版1:1复刻密西西比大学毕业证Mississippi毕业证留信学历认证
jdkhjh
sauth delhi call girls in Defence Colony🔝 9953056974 🔝 escort Service
sauth delhi call girls in Defence Colony🔝 9953056974 🔝 escort Service
9953056974 Low Rate Call Girls In Saket, Delhi NCR
LPC Operations Review PowerPoint | Operations Review
LPC Operations Review PowerPoint | Operations Review
thomas851723
Simplifying Complexity: How the Four-Field Matrix Reshapes Thinking
Simplifying Complexity: How the Four-Field Matrix Reshapes Thinking
CIToolkit
Board Diversity Initiaive Launch Presentation
Board Diversity Initiaive Launch Presentation
craig524401
Beyond the Five Whys: Exploring the Hierarchical Causes with the Why-Why Diagram
Beyond the Five Whys: Exploring the Hierarchical Causes with the Why-Why Diagram
CIToolkit
ANIn Gurugram April 2024 |Can Agile and AI work together? by Pramodkumar Shri...
ANIn Gurugram April 2024 |Can Agile and AI work together? by Pramodkumar Shri...
AgileNetwork
Introduction to LPC - Facility Design And Re-Engineering
Introduction to LPC - Facility Design And Re-Engineering
thomas851723
Pooja Mehta 9167673311, Trusted Call Girls In NAVI MUMBAI Cash On Payment , V...
Pooja Mehta 9167673311, Trusted Call Girls In NAVI MUMBAI Cash On Payment , V...
Pooja Nehwal
Farmer Representative Organization in Lucknow | Rashtriya Kisan Manch
Farmer Representative Organization in Lucknow | Rashtriya Kisan Manch
Rashtriya Kisan Manch
Recently uploaded
(17)
Measuring True Process Yield using Robust Yield Metrics
Measuring True Process Yield using Robust Yield Metrics
VIP Kolkata Call Girl Rajarhat 👉 8250192130 Available With Room
VIP Kolkata Call Girl Rajarhat 👉 8250192130 Available With Room
Reflecting, turning experience into insight
Reflecting, turning experience into insight
LPC Warehouse Management System For Clients In The Business Sector
LPC Warehouse Management System For Clients In The Business Sector
Call Us🔝⇛+91-97111🔝47426 Call In girls Munirka (DELHI)
Call Us🔝⇛+91-97111🔝47426 Call In girls Munirka (DELHI)
Unlocking Productivity and Personal Growth through the Importance-Urgency Matrix
Unlocking Productivity and Personal Growth through the Importance-Urgency Matrix
Fifteenth Finance Commission Presentation
Fifteenth Finance Commission Presentation
原版1:1复刻密西西比大学毕业证Mississippi毕业证留信学历认证
原版1:1复刻密西西比大学毕业证Mississippi毕业证留信学历认证
sauth delhi call girls in Defence Colony🔝 9953056974 🔝 escort Service
sauth delhi call girls in Defence Colony🔝 9953056974 🔝 escort Service
LPC Operations Review PowerPoint | Operations Review
LPC Operations Review PowerPoint | Operations Review
Simplifying Complexity: How the Four-Field Matrix Reshapes Thinking
Simplifying Complexity: How the Four-Field Matrix Reshapes Thinking
Board Diversity Initiaive Launch Presentation
Board Diversity Initiaive Launch Presentation
Beyond the Five Whys: Exploring the Hierarchical Causes with the Why-Why Diagram
Beyond the Five Whys: Exploring the Hierarchical Causes with the Why-Why Diagram
ANIn Gurugram April 2024 |Can Agile and AI work together? by Pramodkumar Shri...
ANIn Gurugram April 2024 |Can Agile and AI work together? by Pramodkumar Shri...
Introduction to LPC - Facility Design And Re-Engineering
Introduction to LPC - Facility Design And Re-Engineering
Pooja Mehta 9167673311, Trusted Call Girls In NAVI MUMBAI Cash On Payment , V...
Pooja Mehta 9167673311, Trusted Call Girls In NAVI MUMBAI Cash On Payment , V...
Farmer Representative Organization in Lucknow | Rashtriya Kisan Manch
Farmer Representative Organization in Lucknow | Rashtriya Kisan Manch
Chpt07
1.
Irwin/McGraw-Hill ©The McGraw-Hill
Companies, Inc., 2000 7-1 The Manager as a Planner and Strategist 7
2.
Irwin/McGraw-Hill ©The McGraw-Hill
Companies, Inc., 2000 7-2 The Planning Process Planning is the process used by managers to identify and select goals and courses of action for the organization. The organizational plan that results from the planning process details the goals to be attained. The pattern of decisions managers take to reach these goals is the organization’s strategy.
3.
Irwin/McGraw-Hill ©The McGraw-Hill
Companies, Inc., 2000 7-3 Three Stages of the Planning Process Determining the Organization’sDetermining the Organization’s mission and goalsmission and goals (Define the business)(Define the business) Strategy formulationStrategy formulation (Analyze current situation &(Analyze current situation & develop strategies)develop strategies) Strategy ImplementationStrategy Implementation (Allocate resources & responsibilities(Allocate resources & responsibilities to achieve strategies)to achieve strategies) Figure 7.1
4.
Irwin/McGraw-Hill ©The McGraw-Hill
Companies, Inc., 2000 7-4 Planning Process Stages Organizational mission: defined in the mission statement which is a broad declaration of the overriding purpose. The mission statement identifies product, customers and how the firm differs from competitors. Formulating strategy: managers analyze current situation and develop strategies needed to achieve the mission. Implementing strategy: managers must decide how to allocate resources between groups to ensure the strategy is achieved.
5.
Irwin/McGraw-Hill ©The McGraw-Hill
Companies, Inc., 2000 7-5 Levels of Planning Strategy Implementation Corporate mission & goals Divisional goals Functional goals Corporate-Corporate- level strategylevel strategy Business-Business- level strategylevel strategy Functional-Functional- level strategylevel strategy Design ofDesign of CorporateCorporate StructureStructure ControlControl Design ofDesign of Business-unitBusiness-unit StructureStructure ControlControl Design ofDesign of FunctionalFunctional StructureStructure ControlControl Goal Setting Strategy Formulation Corporate- level Plan Business- level Plan Functional level Plan Figure 7.2
6.
Irwin/McGraw-Hill ©The McGraw-Hill
Companies, Inc., 2000 7-6 Planning at General Electric Corporate Level Corporate Level CEO Corporate Office Business Level Business Level GE Aircraft GE Lighting GE Motors GE Plastics NBC Functional Level Functional Level Manufacturing Marketing Accounting R & D Figure 7.3
7.
Irwin/McGraw-Hill ©The McGraw-Hill
Companies, Inc., 2000 7-7 Planning Levels Corporate-level: decisions by top managers. Considers on which businesses or markets to be in. Provides a framework for all other planning. Business-level: details divisional long-term goals and structure. Identifies how this business meets corporate goals. Shows how the business will compete in market. Functional-level: actions taken by managers in departments of manufacturing, marketing, etc. These plans state exactly how business-level strategies are accomplished.
8.
Irwin/McGraw-Hill ©The McGraw-Hill
Companies, Inc., 2000 7-8 Characteristics of Plans Time horizon: refers to how far in the future the plan applies. Long-term plans are usually 5 years or more. Intermediate-term plans are 1 to 5 years. Corporate and business level plans specify long and intermediate term. Short-term plans are less than 1 year. Functional plans focus on short to intermediate term. Most firms have a rolling planning cycle to amend plans constantly.
9.
Irwin/McGraw-Hill ©The McGraw-Hill
Companies, Inc., 2000 7-9 Types of Plans Standing plans: for programmed decisions. Managers develop policies, rules, and standard operating procedures (SOP). Policies are general guides to action. Rules are a specific guide to action. Single-use plans: developed for a one-time, nonprogrammed issue. Usually consist of programs and projects. Programs: integrated plans achieving specific goals. Project: specific action plans to complete programs.
10.
Irwin/McGraw-Hill ©The McGraw-Hill
Companies, Inc., 2000 7-10 Who Plans? Corporate level planning is done by top managers. Also approve business and functional level plans. Top managers should seek input on corporate level issues from all management levels. Business and functional planning is done by divisional and functional managers. Both management levels should also seek information from other levels. Responsibility for specific planning may lie at a given level, but all managers should be involved.
11.
Irwin/McGraw-Hill ©The McGraw-Hill
Companies, Inc., 2000 7-11 Why Planning is Important Planning determines where the organization is now and where it will be in the future. Good planning provides: Participation: all managers are involved in setting future goals. Sense of direction & purpose: Planning sets goals and strategies for all managers. Coordination: Plans provide all parts of the firm with understanding about how their systems fit with the whole. Control: Plans specify who is in charge of accomplishing a goal.
12.
Irwin/McGraw-Hill ©The McGraw-Hill
Companies, Inc., 2000 7-12 Scenario Planning Scenario Planning: generates several forecasts of different future conditions and analyzes how to effectively respond to them. Planning seeks to prepare for the future, but the future is unknown. By generating multiple possible “futures” we can see how our plans might work in each. Allows the firm to prepare for possible surprises. Scenario planning is a learning tool to improve planning results.
13.
Irwin/McGraw-Hill ©The McGraw-Hill
Companies, Inc., 2000 7-13 Determining Mission and Goals This is the first step of the planning process and is accomplished by: A. Define the business: seeks to identify our customer and the needs we can and should satisfy. This also pinpoints competitors. B. Establishing major goals: states who will compete in the business. Should stretch the organization to new heights. Goals must also be realistic and have a time period in which they are achieved.
14.
Irwin/McGraw-Hill ©The McGraw-Hill
Companies, Inc., 2000 7-14 Mission Statements Company CompaqCompaq AT&TAT&T Mission Statement Compaq, along with our partners, willCompaq, along with our partners, will deliver compelling products and services ofdeliver compelling products and services of the highest quality that will transformthe highest quality that will transform computing into an intuitive experience thatcomputing into an intuitive experience that extends human capability on all planes --extends human capability on all planes -- communication, education, work, and play.communication, education, work, and play. We are dedicated to being the world’s best atWe are dedicated to being the world’s best at bringing people together -- giving them easybringing people together -- giving them easy access to each other and to the informationaccess to each other and to the information and services they want and need -- anytime,and services they want and need -- anytime, anywhere.anywhere. Figure 7.4
15.
Irwin/McGraw-Hill ©The McGraw-Hill
Companies, Inc., 2000 7-15 Strategy Formulation Managers analyze the current situation to develop strategies achieving the mission. SWOT analysis: a planning to identify: Organizational Strengths and Weaknesses. Strengths: manufacturing ability, marketing skills. Weaknesses: high labor turnover, weak financials. Environmental Opportunities and Threats. Opportunities: new markets. Threats: economic recession, competitors
16.
Irwin/McGraw-Hill ©The McGraw-Hill
Companies, Inc., 2000 7-16 Planning & Strategy Formulation Corporate-level strategy develop a plan of action maximizing long-run value Business-level strategy a plan of action to take advantage of opportunities and minimize threats Functional-level strategy a plan of action improving department’s ability to create value SWOT analysis identifies strengths & weaknesses inside the firm and opportunities & threats in the environment. Figure 7.5
17.
Irwin/McGraw-Hill ©The McGraw-Hill
Companies, Inc., 2000 7-17 The Five Forces Model SubstituteSubstitute ProductsProducts SubstituteSubstitute ProductsProducts Rivalry Among Organizations PotentialPotential for Entryfor Entry PotentialPotential for Entryfor Entry Power ofPower of SupplierSupplier Power ofPower of SupplierSupplier Power ofPower of BuyerBuyer Power ofPower of BuyerBuyer
18.
Irwin/McGraw-Hill ©The McGraw-Hill
Companies, Inc., 2000 7-18 The Five Forces 1. Level of Rivalry in an industry: how intense is the current competition with competitors? Increased competition results in lower profits. 2. Potential for entry: how easy is it for new firms to enter the industry? Easy entry leads to lower prices and profits. 3. Power of Suppliers: If there are only a few suppliers of important items, supply costs rise. 4. Power of Buyers: If there are only a few, large buyers, they can bargain down prices. 5. Substitutes: More available substitutes tend to drive down prices and profits.
19.
Irwin/McGraw-Hill ©The McGraw-Hill
Companies, Inc., 2000 7-19 Corporate-Level Strategies Concentrate in single business: McDonalds focuses in the fast food business. Can become very strong, but can be risky. Diversification: Organization moves into new businesses and services. Related diversification: firm diversifies in similar areas to build upon existing divisions. Synergy: two divisions work together to obtain more than the sum of each separately. Unrelated diversification: buy business in new areas. Build a portfolio of unrelated firms to reduce risk or trouble in one industry. Very hard to manage.
20.
Irwin/McGraw-Hill ©The McGraw-Hill
Companies, Inc., 2000 7-20 International Strategy To what extent do we customize products and marketing for different national conditions? Global strategy: a single, standard product and marketing approach is used in all countries. Standardization provides for lower cost. Ignore national differences that others can address. Mulitdomestic strategy: products and marketing are customized for each country of operation. Customization provides for higher costs. Embraces national differences and depends on them for success.
21.
Irwin/McGraw-Hill ©The McGraw-Hill
Companies, Inc., 2000 7-21 Vertical Integration When the firm is doing well, managers can add more value by producing its own inputs or distributing its products. Backward vertical integration: the firm produces its own inputs. McDonalds grows its own potatoes. Can lower the cost of supplies. Backward vertical integration: the firm distributes its outputs or products. McDonalds owns the final restaurant. Firm can lower costs and ensure final quality.
22.
Irwin/McGraw-Hill ©The McGraw-Hill
Companies, Inc., 2000 7-22 Vertical Value Chain IntermediateIntermediate ManufacturingManufacturing IntermediateIntermediate ManufacturingManufacturing RawRaw MaterialsMaterials RawRaw MaterialsMaterials AssemblyAssemblyAssemblyAssembly DistributionDistributionDistributionDistribution Customer Backward Forward Figure 7.6
23.
Irwin/McGraw-Hill ©The McGraw-Hill
Companies, Inc., 2000 7-23 Business-level Strategies Low-CostLow-Cost DifferentiationDifferentiation Focused Low-Cost FocusedFocused DifferentiatedDifferentiated Strategy Many Few Low Cost Differentiation Numberof marketsegments Table 7.2
24.
Irwin/McGraw-Hill ©The McGraw-Hill
Companies, Inc., 2000 7-24 Business Strategies Low-cost: gain a competitive advantage by driving down organizational costs. Managers manufacture at lower cost, reduce waste. Lower costs than competition mean lower prices. Differentiation: gain a competitive advantage by making your products different from competitors. Differentiation must be valued by the customer. Successful differentiation allows you to charge more for a product. Stuck in the middle: It is difficult to simultaneously become differentiated and low cost.
25.
Irwin/McGraw-Hill ©The McGraw-Hill
Companies, Inc., 2000 7-25 Business Strategies Firms also choose to serve the entire market or focus on a few segments. Focused low-cost: try to serve one segment of the market but be the lowest cost in that segment. Cott Company seeks to achieve this in large retail chains. Focused differentiated: Firm again seeks to focus on one market segment but is the most differentiated in that segment. BMW provides a good example.
26.
Irwin/McGraw-Hill ©The McGraw-Hill
Companies, Inc., 2000 7-26 Functional-level Strategies Seeks to have each department add value to a good or service. Marketing, service, production all add value to a good or service. Value is added in two ways: 1. lower the operational costs of providing the value in products. 2. add new value to the product by differentiating. Functional strategies must fit with business level strategies.
27.
Irwin/McGraw-Hill ©The McGraw-Hill
Companies, Inc., 2000 7-27 Goals for successful functional strategies: 1. Attain superior efficiency: the measure of outputs for a given unit of input. 2. Attain superior quality: products that reliably do the job they were designed for. 3. Attain superior innovation: new, novel features about the product or process. 4. Attain superior responsiveness to customers: Know the customer needs and fill them.
Download now