© Copyright 2013 Anupam Kumar 1
Strategic Management in
Different Business Context
Presented By:
Anupam Kumar
Reader,
School of Management Sciences,
Varanasi
1© Copyright 2013 Anupam Kumar
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.
2© Copyright 2013 Anupam Kumar
Strategy: Small Business Context
3© Copyright 2013 Anupam Kumar
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
4© Copyright 2013 Anupam Kumar
Strategy: Multinational Context
CORPORATE LEVEL BUSINESS LEVEL
© Copyright 2013 Anupam Kumar 5
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
6© Copyright 2013 Anupam Kumar
© Copyright 2013 Anupam Kumar 2
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
7© Copyright 2013 Anupam Kumar
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
8© Copyright 2013 Anupam Kumar
Strategy: Public Sector Context
10© Copyright 2013 Anupam Kumar
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
11© Copyright 2013 Anupam Kumar
Strategy: Not-for-Profit Sector
12© Copyright 2013 Anupam Kumar
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
13© Copyright 2013 Anupam Kumar

Strategic management in different business context

  • 1.
    © Copyright 2013Anupam Kumar 1 Strategic Management in Different Business Context Presented By: Anupam Kumar Reader, School of Management Sciences, Varanasi 1© Copyright 2013 Anupam Kumar 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. 2© Copyright 2013 Anupam Kumar Strategy: Small Business Context 3© Copyright 2013 Anupam Kumar 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 4© Copyright 2013 Anupam Kumar Strategy: Multinational Context CORPORATE LEVEL BUSINESS LEVEL © Copyright 2013 Anupam Kumar 5 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 6© Copyright 2013 Anupam Kumar
  • 2.
    © Copyright 2013Anupam Kumar 2 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 7© Copyright 2013 Anupam Kumar 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 8© Copyright 2013 Anupam Kumar Strategy: Public Sector Context 10© Copyright 2013 Anupam Kumar 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 11© Copyright 2013 Anupam Kumar Strategy: Not-for-Profit Sector 12© Copyright 2013 Anupam Kumar 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 13© Copyright 2013 Anupam Kumar