Strategic management operates differently in different business conditions and the priorities and expectations of the stakeholders also change accordingly. This presentation is a comparative description of five different types of strategic business contexts.

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Strategic Management in
Different Business Context
Presented By:
Anupam Kumar
Reader,
School of Management Sciences,
Varanasi
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Strategic Management
• Strategy and strategic management varies in
different business contexts.
– The small business context
– The multinational context
– The manufacturing and service organization
context
– Strategy in public sector
– Strategy in Voluntary and not-for-profit sectors.
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Strategy: Small Business Context
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Strategy: Small Business Context
• Scope of operations are less
strategic and more planning
based.
• Unless the firm is a specialist in
the field, it would be under heavy
market pressures.
• Arranging resources & developing
competences may be a big
problem.
• Firm may not have a separate
strategy team.
• Owner is the most important
stakeholder.
Direction & Scope
Long Term
Advantage for Organization
Resources & Competences
Environment
Needs of Market
Stakeholder’s Expectations
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Strategy: Multinational Context
CORPORATE LEVEL BUSINESS LEVEL
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Strategy: Multinational Context
• Products and markets are
diverse.
• The key strategic issues
include:
– Aspects of structure and
control at the corporate level ,
– the relationships at the
various business units level,
– Allocation of resources among
the business units, and
– Coordination of operational
logistics across business units
and geographies.
Direction & Scope
Long Term
Advantage for Organization
Resources & Competences
Environment
Needs of Market
Stakeholder’s Expectations
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Strategy: Service Vs Manufacturing
• Competitive advantage in
service organizations is
much more related to the
extent to which customers
value less tangible features.
Direction & Scope
Long Term
Advantage for Organization
Resources & Competences
Environment
Needs of Market
Stakeholder’s Expectations
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Strategy: Service Vs Manufacturing
• For manufacturing
organizations, the physical
products is the central to
competitivestrategy and
services are merely needed
to support the product.
Direction & Scope
Long Term
Advantage for Organization
Resources & Competences
Environment
Needs of Market
Stakeholder’s Expectations
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Strategy: Public Sector Context
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Strategy: Public Sector Context
• The most powerful stakeholder in
the case of public sector is the
government.
• Scope and direction is determined
by political rather than market
conditions.
• The competition is mainly for the
input of resources rather than
towards the market and
customers.
• Social issues and concerns are
more important environmental
factors rather than business sense.
Direction & Scope
Long Term
Advantage for Organization
Resources & Competences
Environment
Needs of Market
Stakeholder’s Expectations
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Strategy: Not-for-Profit Sector
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Strategy: Not-for-Profit Sector
• The values and ideologies
are central to strategy
development.
• There exists multiple source
of income and revenue.
• They are more susceptible to
lobbying and other political
influences.
Direction & Scope
Long Term
Advantage for Organization
Resources & Competences
Environment
Needs of Market
Stakeholder’s Expectations
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