it includes, research and development, example, operation strategy its kinds and functions, its kinds and functions,purchasing strategy its kinds and functions,logistics strategy its kinds and functions, , HRM strategy its kinds and functions, Creating the Business Scenario,stages.

1. Research & Development strategy
TechnologyLeadership: leader is calledpioneer
Pioneering an innovation.
That strategy which is to be the first firm to market new technologies. ( exiting and
dangerous strategy).
This strategy involves pioneer firms to develop first version of the new productand
demonstrate that market exists.
Technology leadership fits well with differentiation.
Example:
Nike spends more than most in the industry on R&D to differentiate the
performance of the athletic shoes from that of its competitors.
TechnologyFollower:followeris calledcopy-cat
Imitating the products ofcompetitors. That strategy which is to be innovative
imitator of successfulproducts thus minimizing the risk and coststart-up.
A follower strategy makes sense with costleadership strategy.
Example:
Dean Foods Company, the president Mr.Howard Dean says that;
We are able to have the customer come to us and say, if You can produceX, Y
and Z productfor the same quality and service.
Operation strategies:
Standardization

2. Achieving maximum productivity through standardization of service
product and service design and delivering global economy of scale and
lowest unit cost which is an important tenet of economics ( product and
production orientation)
Standardization means “one size fits all”.
Customization:
On the other hand customization refers to the tailoring of the campaign
according to the needs of an individuals or group of individuals. These
are high margin products where the volumes are low and the buyers are
few
Layout Design:
To achieve through skill imagination and resourcefulness in layout and
work methods, production effectiveness and efficiency while supporting
a high quality of work life.
ProcessSelectionis basically the way goods orservices are made or delivered,
which influences numerous aspects of an organization, including capacity
planning, layout of facilities, equipment and design of work systems. Process
selection is primarily used during the planning of new products orservices that is
subject to technological advances and competition. Process selection is dependent
on the company's process strategy, which has two main components:capital
intensity and process flexibility.
Make-or-buy decision:
The make-or-buy decision is the action of deciding between manufacturing an item
internally (or in-house) or buying it from an external supplier (also known as
outsourcing). Such decisions are typically taken when a firm that has manufactured
a part or product, or else considerably modified it, is having issues with current
suppliers, or has reducing capacity or varying demand.
Full integration:

3. Should be considered only when that activity or functional adds significant value
to the company’s products orservices in addition to providing advantage.
Taper Integration:
A firm should always produceat least some of the activity or function if that
activity has the potential for providing the company competitive advantage.
Partially Integration:
The activity contributes highly to the company’s products orservices. The firm
should purchase it through long term contracts with trusted suppliers and
distributors.
Outsourcing:
A firm should consider outsourcing any activity or function that has low potential
for competitive advantage if that activity constitutes only a small part of the total
value of the firms products orservices, it should be purchased from open market (
assuming that quality providers, of the activity are plentiful)
Purchasing strategy
Purchasing strategy deals with obtaining the raw materials, parts, and suppliers needed to
perform the operation’s functions.
 Vendor selectionand development:
The decision making that occurs when a firm selects a supplier in order to minimize the risk of
choosing the wrong one. Strategies used include the rating of vendors on the scale, the practice
of choosing vendors from an approved list, multiple sourcing, and choosing the lowest priced
vendor to minimize the potential for financial loss.
Vendor development involves four stages
1) Survey stage:
Survey involves collecting information on different suppliers of the desired materials.

4. 2) Enquiry stage:
After a list of possible suppliers complied, the next step is to inquire a few of them further.it
involves a detailed analysis of suppliers activities furnished by vendors or collected by the
company
3) Negotiation stage:
The vendors who are successful in the enquiry stage may be called for negotiations in order to
discuss business possibilities.
 During this stage, various terms namely credit, quantity discount, quality specifications
etc. can be decided.
 Finally a list of approved vendors drawn.
 Accordingly, purchase orders are placed with the approved vendors
 Several aspects of buying techniques are used at third stage.
4) Experience and evaluation stage:
At this stage, the buyer evaluates and appraises the performance of the vendors. The objective is
to improve the performance of the vendors in which they are deficient.
The evaluation is done especially on two counts, namely quality (judge by rejection of lot-size)
and delivery (judge by delay of delivery.
 Parallel sourcing:
“Two suppliers are the sole suppliers of two different parts, but they are also back up suppliers
for each other’s parts.”
Parallel sourcing as defined by RICHARDSON (1993), therefore provides a way to maintain
competition between suppliers that have similar capabilities and deliver the same type of
components.
Parallel sourcing is a strategy where the buyer seeks to keep its option open, exploring other
sources, and thereby putting pressure on the single source supplier.
 Long-term contracts:
After adopted the source for raw material, the firm should purchase it through long-term
contracts with trusted suppliers or distributors.
“In a long term contract, the buyer offers a fixed set of prices to the first supplier, if the supplier
accepts the contract, the buyer switches suppliers only in the event of supplier 1’s bankruptcy”.
Long term contracts financing possible. This legal template is for a supplier to sell products or
materials to a purchaser at pre-determined prices with minimum/maximum annual quantities, all
sales being made against purchase orders.

5.  Tender notices:
It is an invitation from the owner to the contractor to execute some work at specified cost in
specified time.it is published in the form of tender notice in newspapers, noticeboards, gussets
etc. according to the cost of works.
For the contract to be valid, there must be an offer from the owner in the form of tender notice to
get some specified work to be executed and there must be an acceptance from the contractor to
execute the work, both the offer and the acceptance must be legal and definite.
Information to be given in a tender notice.
 Name of department inviting tender
 Name of work and location
 Designation of officer inviting tender
 Last date and time of receipt of tender
 Period of availability of tender document
 Cost of tender document
 Time of completion and time o contract
 Earnest money deposit to be paid
 Date, time and place of opening the tender
 Designation of the officer opening the tender
Logistics strategy
 Inbound logistics:
Inbound logistics is an integral element of business operations for a manufacturing firm,
involving the processes of receiving, storing and distributing raw materials for use in
production. It is the first stage in value chain, which business management expert Michael
Porter outlined in his 1985 book "Competitive Advantage." Small business manufacturers
may not manage as much inventory, but should still optimize inbound logistics processes
 Outbound logistics:
The movement of material associated with storing, transporting, and distributing goods to its
customers.
Outbound logistics are the processes involved in moving products from the creating firm to the
firm’s customers. This portion of logistics is completely separate from taking and using raw
materials, otherwise known as inbound logistics. This field relies heavily on transportation and
storage of finished goods. Outbound logistics refers to the product from the seller’s standpoint,
and product may mean different things to different people.

6. Outbound Process:
A business goes through several stages in the outbound logistics process. The sales department
first receives a purchase order from the client. The sales department checks inventory availability
to ensure they can fulfill the order. The sales department then sends the customer order to the
warehouse for picking and packing. The order is shipped and a warehouse clerk updates
inventory levels. The business bills the client and eventually collects cash for the order
HRM STRATEGY:
“A co-ordinate set of actions aimed at integrating an organization’s culture, organization, people
and system in order to get achieve the business goals.”
Human resource Planning (HRP):
HRP also referred to as workforce planning or personnel planning.
“Process of determining the human resource needs of an organization and ensuring that the
organization has the right number of qualified people in the right time”.
Recruitment and selection:
Recruitment:
“Process of seeking and attracting a pool of people from which qualified candidate for the job
vacancies can be chosen”
Sources of recruitment:
Internal sources:
 Employees.
 Job posting and bidding.
External sources:
 Advertising.
 Employment agencies.

7.  Temporary help agencies.
 Employee leasing companies.
 Campus recruiting.
 Internet recruiting.
 Employee referrals.
Selection:
“The process of choosing from among available applicants the individuals who are most likely to
successfully perform a job”.
Steps in the selection process:
1. Completion and screening of the application form.
2. Preliminary interview.
3. Employment testing.
4. Diagnostic interview.
5. Reference checking.
6. Final decision.
Training and development:
“Learning process that involves the acquisition of skills, concepts, rules or attitudes to enhance
employee performance.”
Methods of training:
 On the job training.
 Job rotation/cross training.
 Apprenticeship training.
 Class room training.

8.  Virtual classroom.
Planning and controlling (P&C):
 Human resource planning is a process that identifies current and future human resource
needs for an organization, based on the goals and objectives set by upper management.
Human resource planning serves as a link between human resource management and the
overall strategic plan of an organization.
 Human resource controlling applies the concept, principles, and tools of controlling to
human resource management. HR controlling systems usually provide information such
as staff costs, the costs of the HR function and traditional employee statistics without any
problems.
Industrial and Employees Relations:
Sound industrial relations and effective social dialogue are a means to promote better wages and
working conditions as well as peace and social justice. As instruments of good governance they
foster cooperation and economic performance, helping to create an enabling environment for the
realization of the objective of Decent Work at the national level.
Career management:
Career management is the process through which employees:
 Become aware of their own interests, values, strengths, and weaknesses
 Obtain information about job opportunities within the company
 Identify career goals
 Establish action plans to achieve career goals
Information system strategy:

9. “Strategic information systems (SIS) are information systems that are developed in response to
corporate business initiative. They are intended to give competitive advantage to the
organization.”
Management information system(MIS):
Provide information in the form of prespecified reports and displays to support business decision
making.
For example: sales managers may use their networked computers and web browsers to receive
instantaneous displays about the sales results of their products and access their corporate intranet
for daily sales analysis reports that evaluate sales made by sales persons.
Marketing information system(MkIS):
A marketing information system is a management information system (MIS) designed to support
marketing decision making. Jobber (2007) defines it as a "system in which marketing data is
formally gathered, stored, analyzed and distributed to managers in accordance with their
informational needs on a regular basis."
Human resource information system(HRIS):
Information system that support human resource management activities such as recruitment,
selection and hiring, job placement and performance appraisals and training and development.
Enterprise resource planning:
Integrated cross functional software that reengineers manufacturing, distribution, finance, human
resource, and other basic business processes of a company to improve its efficiency, agility and
profitability.
Knowledge management:

10. Knowledge management (KM) is the process of capturing, developing, sharing, and effectively
using organizational knowledge. It refers to a multi-disciplinary approach to achieving
organizational objectives by making the best use of knowledge.
Creating corporate scenario and strategy implementation:
A Business Scenario describes:
 a business process, application, or set of applications, that can be enabled by the
architecture
 the business and technology environment
 the people and computing components (called "actors") who execute the scenario
 the desired outcome of proper execution
Creating the Business Scenario
The Overall Process
1 - Identifying, documenting and ranking the problem driving the scenario
2 - Identify the business and technical environment of the scenario and documenting it in
scenario models
3 - Identifying and documenting desired objective
4 - Identifying the human actors (participants) and their place in the business model
5 - Identifying computer actors (computing elements) and their place in the technology
model

11. 6 - Identifying and documenting roles, responsibilities and measures of success per actor;
documenting the required scripts per actor, and the results of handling the situation
7 – Checking and refining only if necessary.
Strategy implementation:
Strategy implementation is a term used to describe the activities within an organization to
manage the execution of a strategic plan.