Strategy, Levels of Strategy

1. Organizational Strategy and Levels

2. Organization Strategy
• Business strategy or Corporate strategy
• The long term action plan of an organization that is focused on
achieving sustainable competitive advantages.
• Formulated and implemented by considering internal resources
and competencies and the external environmental forces and
factors.
• Organization Strategy is the unified, comprehensive and integrated
plan that ties resources, structure, culture, objectives, goals of a
corporation and stakeholders’ expectations together with changing
environment to contribute to the basic objectives.

3. • Long-term horizon
• Future outcomes and uncertainty
• Integrated broad action plan
• Environmental adaptation
• Strategic decisions
• Competitive advantage
• Strategic fit
• Means only
• Stakeholders’ expectation
• Top management oriented
Organization Strategy -Features

4. Sustainable Competitive Advantages
• Competitive advantage indicates to the advantage of a firm
face-to-face with the competitors.
• Sustained competitive advantage depends on the qualities of
resources.
• Valuable
• Rare
• Costly to imitate
• Organization of resources

5. • Understand the nature and dynamics of environment
• Acquisition and utilization of resources
• Grasp business opportunities
• Overcome problems
• Sustainable competitive advantage
• Long term direction and scope
• Stakeholders’ expectations
• Organizational attractiveness
• Future uncertainty and outcomes, etc.
Why Organizations Need Strategy

6. How Strategy Formulated
• Bases
• Directions
• Methods

7. It presents the firm’s strategic intent
The purpose or reason for the firm’s existence
Objectives are the end results of planned activity
The purpose or reason for the firm’s existence
Strategic Elements

8. Strategic / SWOT Analysis
• It refers to the analysis of internal and external
environmental forces and factors of a firm with a
view to develop strategic options.
• It indicates to the careful assessment of the
nature, dynamics and impacts of internal and
external environment of an organization.
• It is focused on business environment and impacts
to a firm.

9. Business Environment
• Environment refers to all forces and conditions having the
power to influence.
• It is the aggregate of all conditions and events.
• Business environment is the set of all the conditions and
events that are directly or indirectly related to the
operations and performance of the business.
• The forces and factors within and outside the business
organization.
• The dynamic factors offering strengths, weaknesses,
opportunities and threats (SWOT) to a firm.

10. Remote Environment
Operating Environment
Internal Environment
Business
Organization
Business Environment

11. Components of Internal Environment
The components / elements of internal
environment are:
• Organizational goals and policies
• Organizational resources
• Organizational structure
• Organizational culture

12. Techniques of Internal Environment Analysis
• Value Chain Analysis
• Cost Efficiency Analysis
• Effectiveness Analysis
• Comparative Analysis

13. External Environment
• Forces and factors outside the organization
• Composed of all the outside factors or
influences that impact the operations of
business.
• Provides opportunities and threats to a firm.
• Consists of:
• operating environment and
• remote environment

14. Operating / Task Environment
• It consists of various stakeholders of business and their
expectations and reactions.
• Affects a firm’s ability to obtain resources and marketing
of products.
• Influences directly to the competing capacity of a firm.
• Consists of:
• Customers
• Suppliers
• Competitors
• Government
• Financial institutions / Creditors
• Labour unions
• Pressure groups
• Media

15. Remote Environment
• The macro or general environmental forces and factors
offering opportunities and threats.
• Located outside the organization
• Can not be controlled by the organization
• It influences to organization and influenced by the
organization.
• Consist of:
• Political environment (P)
• Economic environment (E)
• Socio-cultural environment (S)
• Technological environment (T)
• Natural environment / Ecological (E)
• Legal environment (L)
• Global environment (G)

16. Remote Environment

17. Techniques of External Environment Analysis
• PESTELG analysis / PESTELG framework
• Scenario planning
• Structural analysis of competitive
environment

18. Strategic Options
Alternative Generic
Strategies
Alternative
Directions
Alternative
Methods
• Corporate Strategies
• Stability
• Growth
• Retrenchment
• Combination
• Business Strategies
• Porter’s Competitive
Strategies
• Strategic Clock Strategies
• Protect/Build
• Consolidation
• Market Penetration
• Market Development
• Product Development
• Diversification
• Internal Development
• Mergers and Acquisitions
• Joint Development and
Strategic Alliances

19. Evaluation of Strategic Alternatives
• It is concerned with the analysis of suitability,
acceptability and feasibility of the strategic
alternatives.
• Focused on selection of the best strategy or on the
strategic choice.
• The criteria for evaluation of strategic alternatives
are:
• Suitability
• Acceptability
• Feasibility

20. Strategic Management

21. LEVELS OF STRATEGY IN AN
ORGANIZATION
• Single Business Organizations
• Multi-business Organizations

22. Levels of Strategy
Strategy can be at different levels:
• Corporate Level Strategy
• Stability strategy
• Growth / Expansion strategy
• Retrenchment strategy
• Combination / Mixed strategy
• Business Level Strategy
• Strategic cloak strategy
• Porter’s competitive strategy
• Functional Level Strategy
• Marketing strategy
•Production strategy
• Finance strategy
• HR strategy
• R & D strategy

24. Levels of Strategy

25. Levels of Strategy -Distinction

26. The End