gone GEOR 00 seu agen EERSTE wm : Module 005 Formulation of Strategy (B) tthe endof this modal, youareexpected te 1 Copnitver recall enventel tems cencepty and princes of theditferent lvels of sustager and the cnporste level seein 2. Adeccives showsmarertn sudng the dstas af rub yper ofthe dtterertcorporatelevelseatepies 2, Paychomoton poi cutthe when'sand whys ofcorsiderng the Afferent coryoratelevelstatepies Formulation of strategy According to Ordenes,. (n.d) Strategy Levels And How To Apply Them in Your Business Recieved November 26, 2019, fom Atpad /wnmusseatertateasnes/seg/watee irae swategy comes in differen sizes and shapes. A mul-satioral company strategy wil contrast one fawn taveap but sll the pomeiplr namain Srategy cov be = thes levels fictional lore, ‘basngs lave and orporste lve dee sea land ogg thn Yr nate Ree ‘+ Funcionallevel-asuategylevelat the busines organization sopersting end. Ine level enssoyecs deazions are rrunllyderoibed as taal cecsens and concmed with how diferent Gusiss orgaiseten's SinesensA guide uescots: coosthute 1 the ther level: f cuategr. The sal fancions may studs nance matketng human resources, manufacuring and others Funcaonal strategy a's wih a fainyresricove plan which aves the sbjectves fer each speci funcion. Informing the day to day employees’ work and ulnmately Seeping the business creanaston mormng ir the night direcion become yosnibe because cfehesratepiclevs ‘Busines level ~ inthe herarchy of rate, the business level srategs isthe second ter. Thislevel's under the corporate strategy and 2 means fo goa ‘Sthievemen: of pests unitin She business ergeneston. Implementation of this strategy level is ony signfcamt for business fms wth muluple {usinss unis that may sel podcs andrendesernsesormay sel maple roduc and series in ferent busines industries, Azood example i ‘Eig tank tat sls mutiple serves in aerent tastes, in Dsines ite vwealh ranagement cororate banking, pial rising nd sk uanagemen: Business unitneads and omer mladie matages Wimin each ‘nit ae the ones who conswuct the businesr-ieve steeples There ‘sons why a renge ef manager rom each int shows persipete Se ‘sins: level sratgy proces because ofthe folowng essone increases by-in- hang + chance for tanager: fo contribute % creseng swategie feels ncided in making decisions Because oat Shoat teenaton — completion becase the oppertniy is ven b them i te formation oftuswaeey, Conporatelevel~ te toy stratagy lerelin a business organization The sveral rection that the busmess arganzation wil move in and the highlevel (erporne svateny plans ville defined, Selac a ststeay grou suche the {Dp management nd C£O creates these plans ‘The sid group is volved leeause ofthe pessesson ofa deep company uncersanding and needed strategic business knovledge so ai to steer te business Sem inthe ight rection. General, is stategy is breader in marure ompared te other [evel of srtegy In tis level staegiesare more tuisie ana concepts ‘aan the functional ousiness level suategies and usualy span @ 3.5 year eriog a corporate strategic plan val ell 1, Fecurares 4 Seat objecttes Ansar the folowing to chack what you learsed fram the discussions so fat. Check your Snsnersfom se provided ancver grat hand ofthis eadule Pave smo nandee sum ‘your answers OFZ 1 What are the thre eve af ratogy? Define ach 2, Enumerate the tings sat shouldbe indudedin a corporate suategicplan.GAOENElocd Seige Hagens ny ‘SwrategesinCorporateLevel ba (9005 ae 2) caeperaneel aap stareaves Renee! re dha oana oat ‘ernmee According to Nishikannvar Follow: (20:8, August 12). Corporate Level Suategies. tps /insishceshare ek mishkentuat/corparase- Remevea November 26,2079, 50m luzalattagies-LOSE1087S, corporate srteny serves asa blueprint forthe business firm's ‘sowahThe overal Grecia efor fr te ala frm ise tough uesestratgies According the same source, cororateleve statgies have diferent yes, and these ae te ‘lloving 4 Sabitiy custay—teshissuatgy the business orgaisationraminsit procant strategy (corporate leve) and contnues to forus on is resem mariets ad ‘product. The ssid basiness organization also has satisfaction in its [nsremental powth Liknvise acconing'o thesamesouree, sab has thee ‘ppes ard these are ‘To change srategy~ consciously, the business irm decides to de noting ‘ged tocontne wh te current burnersdafinton, Unialy, many small ‘bed medium orgaizatons tat operatein a ‘amllar market and ofer oducts through sechnology that is umetested rely on this strategy. ott strategy ~ his srategy is atopted by she business organzaton ‘ter sssesang tie sinumion if tere is 2 situaton of lowering is ‘oftaoliy. bt thesaideas, ‘ne sad busmessfirma undertakes measures course Module‘eat costs reduce investments, increase productivity, raise prices, 4 Feue/yroceed wih enuton stategy- Atemperry sate wherein he neporete leva, Whanif terete anced forsonscidateninterrensg the seategy is essential To let the suatege charges emanate dow the rganzation vels make the system adap to the ev sratgies and it ‘he changes in stuctue occar are the reasons for considerag ths Eats 2. Expansion strategy ~ This strategy is also known a5 intensicaten or grow strutegy andthe most poplar corporate swategy Acts ef the company ae spanded uring ths cate, WWaena usinescrpanisauon wantstonarea mien roth by Sroadening oneofite businesses ssopeintenneofcustoner Anco especie customer groups and aliemative technologies to ehance Is overall performance, this svategyis considered. This kied of strategy is cosen by the svalabiliy arehigh For instance, to nelud producer opted to expandhis busines. Ancther examples = printing company ‘has changer fom tasitonal ter peers pining te detitop publishing f Incase efficiency and inease procicion. Lilswise aceerding to the sam source expanson svategy has sub-ypes and these are the folowisg: Expansion trough concentration 7" dake: penetration ~ te business Sema seks o sel more goods produced tothe same market This strategy is considered by the ‘Sid fir when existing opportunites are present and exlotng Escurentwarketsand curert products sa good cheice Taesail Strategy is adopted, ana grown is acieved tarcugh exisurg produc oy. > Motvatingpreseatcusomersto purchase thes procuctskt Inge: quarbtiesand more requerty. Taiss done trough > Increasing afore to make the coriomere of campattaes be siraced to ther products by providing qualiy products ging atvacive prices and stracive product des, > Targeting sew customers isis preset market rough ‘beter customer services, price coteessions and inceasing publi. Marke: devdlopment inthis strategy, te business fem sells the same product to new group of customers TATOURh th, sles inevenie and some ofthe metiods employed ae ‘ie busines rt moves fe elrnt products Ino nev Seopaphial ares by appaning ew camel pres ‘Slesforee ana Panchsingis cpersuon “=ontine ation SF seater Masageant Formataton of Seategy (8) . course Module 1 The busines firm attrans new make segments that make done in the existing products, making aew market segues etracedand coincedto buy the sid product: Product development ~ In tis strategy, the business firm cell anew products tothe same customer group. Development and Improvement of new produces ‘or it present markets Te Involved inthis srategy, The possible methods fr tis suateg? sete folloning > Development ofsew producs > Creme improvac or deren cuventproductversions 1 SiBtenecesaryshangerin te anstngpreduct so arte sat ‘he ier aad csthes ef consumers > Expansion through integration ~ tntepration according to the same. source refers to combumg afferent accrues related tothe Dusines fem'sacuvties. Te said combinaton may be done on the value chain sualyss basis, Uewise according wo Toung F. ¢ (2018). srungie Hanageman: fede Simple Firs). Mania: Rex Publishing Compan Page sour invertmantin cther busines firms to ahiave grow gous The [ec cestegnr are belly agunton rosteperanathere arena ehe fest tv ypes of expansion trough intepaton: Y Honsantl integration «refers. rstgy hare the burinast ‘rm anqures ancther dynamic business, Thereare differest essous forunderaking horzonta integration andhese are fhe folowing ‘ Elmination of the potential cr real competitors (olibee [purchased ex Mang lnssal for far of loang thir fast-food {ndusay mazket share) + Atdesve of business frm © simply expand its market Gemographialy, expand its reach and maintain thelr satus coallenger companies tat are involved ial poductand sevice processes Integrsted growth srategy adopted oy «basins orgenization to ‘Sansacion and imentory cos, increase te company's marketshare and ensure real stores’ adequate stocks, There are sw subtypes ef vericalimegration aud these ae the fillovang: ‘ aceard integration ~ In this vertical integration, 2 ‘usnes frm purchases oneofits suppers. A busmess frganatior can beter contol te suply claim and 2 ‘nore costaffezure or relate mput sappy cat be ensured by carrying out bacand tegration. hneffiencis cn be eliminated ty 2 buses crgenzationto Secure quality output oroutpt Whi = scoring 3 randarde Business im can apply prosess and product strategies fp that theright goods wilbe produced and the right rise ‘il ee tendered Forward integration ~ Thi vertialintegrationis cate cut en a busines fim purchases dstsbutin Companies tat are patof ts istmouton chain ‘Because ofthis the busmess Sr is able eraicate the uterediry whsenm sara elmingte cos rlzea to Gisuituton Aeinvanton ofthe busines: organisation's sarkong oxuoor and recesgungis marcenng ‘srategas wil be posite through his verucal, ‘tegeuon, Forissance a busines fm that ‘anuficrures garments can purchase retail outs that (lsplayandsel Ueirotngines wo neeasesales Eapension through dirersifcation ~ According to Nishikantner Fellow, (204s, sugust 20). Corporate Level Seategis Revieved November 26, 2019 from lnips,/insaldesharans/ nian sorpotaiedal ‘Sratgies 109410875, m dversiestion mornginto nev business ines ‘ake: place when new prosucts are made for new markets There are Seo ppessfairemfitonand these are the olonan, > Retitd (Concentric) diversification kappess wan the business congunizaton does ar aciuty ina manner related to te existing detnison of burner Sub per ofthe sieeniaton sceorsing ‘pte sane source ne thefolowang ‘Example. A company which profucessewirg machine iversfesintohousehald appliances and chen Technology related diversification ‘Example. Insurance company which offers insurance fe sisutonal cusmimars also stars #2 ote insuanceteindindial caxomate ¥) Markzting and technology rated diversification ‘Example A company which manufarmares synthetic®BoONtine, GAAS |o€d evap eugene ; Se ss synthetic windows and doce: through f= andere suppliers network 2 Unrelce (Conglomerate) aiversieaton Isa strategy wherein a ‘musings organization kes up activites that are notrelated othe arkes are added to its existing busness and prodos 22 eserally troduced unng diferent new marie tesinolopes ‘amples: agribusiness hotels 1 tyres andotels “@-Adisys Hila Group operates ifort unrelated acivies sich as outsourceg chemical’ ahuminun, cement gas. copper. mining softvare retail tee Sd tlecommunication Expansion trough cooperation ~ cere is termwhich refers to this tre ofexpassion and this is" o-opettion’ which expresses the smulaneons ompetton ana cooperauon idea among the competing business fms formutual bereft Likewise i this sratexy, mutual ooperation amos compettors and atthe some tne competng wih them i considered so asthe espanson ofmariet potential becomes possible and materiized Ceoperstve suategy har diferent sub-pper ascording tie sane source and these a > Mergers and aquisition (akeovers) - What is 2 merger? ‘According te the same source a merger refersto the combination ¢f two or more business orgenizaons in which ons acquires all ‘me omer's sets ana Lapilbes m exchange o cash OF Snares, oF ‘oth the busines firms are distolved and their assets and Eeblites ate combinedand new sock isissued. an organzatien ‘hat anquines ancther company is an acquistion and for the sub-gpes of veges and equision were piven by same companies are of the same busines industry and similar Example: Garments compa merging with another orments company. course Module¥ Verccal merger - when tvo business organizations are mazafacuring the sume products, but ae at diferent sags, Eranple: Garments company merging with fabrstintng ‘company. ¥ Concentric merger - when no busines organizations are feuted to auch other time of sustoer groupe oF customer Snewone merge. Bangle: ‘Garments company merging with another SpeCalty garments company Conglomerate merger - wen two business organizaens operate indifferentindustres. ‘Garments company merging with hermaceuio company. > The joint vente can be considered an entty resulting from 2 jong‘erm sgresent enveen fe or more partes an ants i formed beoveen pares to perform 2 specified sctity together Through coxtributing equityand sharing of expenses,revenueand terre contre pares Geate anew entiy. ‘The Venture may be fora spenfic poem or a consnuing rlatonship im business Ex Sony Encsson Liaise aeordingto the seme source, there se some conditions for jointventres aed these aethe felling {1 When a business acuity is not economical fora business ongazizaton todo alone redused forthe particpating business rms. ‘nen te auerene competence of so or more busts |, cyasteom a bebrougiengehe, surrounding bariers lke tarts matonalisie ~ cultural roadblock impors quotes end peitica interest, Moreover there xe fivetrgges fora joint venmure and these aretha teloweg Geoerashr Regulator Tecnology [npelemod exchange Shanng ofceptal andrisk R688 > Surategic aliances - According 10 the same source, strataic jane veers to sform ofafiaton thatinveles mutual resource ‘harieg or ‘paring to improve efficiency. This appens when ‘neo ef more business firms ume to pursue & mul goal butGLOLNEoed [education setegic Management * Formalaton ofStatey @) Course Module independence remans te the alliance formation There are hating of alianee and control benaite Geoesn parser fms Firm parmars continute continous) in ley srtegic areas ike Produesand ecology, Somereasonforsatagic aliance are Ease of entry into aforeipn market" Ee Seatepe aliance ‘bevaes Artrian iris ane Brith Airy v Stang of expenes and sks “meaty 1990s fm manufacturers Fui and Kedak joist with camera ‘anufaturers Canon, Nit, ard Minolta create fimand cameras for an “Advanced Phot Syrem, Shuergsuc efecs cf shared experuse and mowedge Gaining competitive advantage eduaig cove in manutacureg coe ‘Expansion through inernatonaiaton- International satepesrecire domestic marie There ave tir ets offacors whch afar the dacsion of the Dusen frst adept intemaonel areteges and there are the folloning company ominimizeits unt cost adopts itesratenies sos tomatea enyonseto natonal-eral Gifrencer in srme of factors like sistomer tastes and prefsrencs business pracees or government polcies The Gitfeene pes efimtemational sustegis are 1 nsarnatonal strategy i this strategy the business crraniasionscrestYalueby wansferng producto foreign mariats vere the sud product ate not wailable Sandirdized producs in diferent Gountier tha have no er lie ciferantaton are fered no, Multndomesic strategy - high level of local _esponsivenes is ily te ty to achieve by business crguniasions. Hows it done? Prodacts and service flermgs are matcied (> the national conditons ‘wiich are operating in the ccuntris the business ‘brs operate im With is strategy, ctanencesamong national markets are recognized and mphasied by managers which results in alowing subsidiaries te diferent managemert prarices and produce by county, 4. Global svategy~ A low-cost approach which s based fon reaping the experience curve effect benefits and Joosion ecesomier and ofering standardised product awe aiterem coummues w asoptes OF ‘business firm in his strategy. Industries such as zubmonles, srosyace, metals telesmmunicarons, Computes metals inéustral equipment and (henicals are examples of onal ndususes where ther is 2 repional or 2 wordwice see of the competion. 4. Traronational srategy - this strategy referso a ‘he business orgunzaton stives tm bemare responsive fo Ge loal needs while retuning enough contel (person contre soazto ensure learning andeffcincy. ‘The msjor scrantages of glsbal and mult-domerie _xrategies recombined in vanenetons stetegy vile fhe daasemntager of terns estagie ave manned [nie combined approach of high nel responsiveness, andthe businessfrmsadop: Tow sost 3. Rerenchment strategy This strategy iss response industry and market acing Itaimsatacuvzy concentration through one or ore msportant ‘nusness scope reduction In this suategy, an ateprto determine the rootand cause of the problems and sepsis taken o sore them. Some farors wad t (ecine and these are te following according tthe same source: ‘A INTERNAL FACTORS. 1, Bicess assets and hgh costs Y inefecuve management Y Notappropnatestategies Newbusinas models Rewtecuologies Unfavoratle peices in government Denman seireton < 44 Acombinatonstrategyisan spprosch whereit the business organization Hdope smn sss, epunsion and rotenctmeneetutegies Thc (one either simultaneously in diferent businesses rat deren: periods intheGANA oes Seneca s CE. @ 2B Gude Questions: Ansvar the following w check what you warned fron the scussons 2 far Check your ower from te proved answer ay atthe end of is module There no reed tuba youranswas 0 052 2. Gave te amerence among mestrategies athe corporate eel? 2, Give the diferent expansion statepies which a siness firm can pursue ‘Global Environment strategy According to Yeune F.C. (2015).Seratgic Management Mace Simple (Firs). Mani: ‘Rex ubliuing Company, pp. 7&7. Corness rms purse global suategi: for expensing “ouszess externally in some instances, Global suatgies cover ree main areas and these ‘re Mternationa, muls-nstonal and global Insmnavonal strategies are pursued by ‘busiess companies that may vane to sell exces proauct outside the county, Malo ‘patna sraeges may be engaged by 2 busines company when the sid business is ‘nvoied i the number of mancet outside the Rome eounuyy Seliag diva and {ompeture procuct ana servicer suited to customers cmands tn erent counter 1 challenging in urdertating mult-rationl swategies The company considers or reas the ‘World ab a whole one mariat and one supply soure with sig loca Varalons In giobal uauges, Likerize same source tec the Senefas of global environment sustegy and 1 Larger eumingsandsales 2 Gibal eranatie 4 Increasesarnge Mossover.accerdng tothe same source n building and adopting glotl stretegy, ‘here are some reources tit should be consiteredzo aso aml compestvenes level, nd nave ste the folowing > Big capitalization hecauce ofthe fact that requitements for fading can he Genandng > Stsegic and managerial leadership so a5 to come up with the appropriate Sustepes to stain success > Mamagenentand employees capabilies and expertise > Digerensated semererourcer seu Guide Quertont: Answer De fllowing 9 check whas you warned fromthe Ascussons 2 far. heck your answers from sheproviedansiver ay atthe end of hs module There's named 9 submat 1 What re the three main areas covered by global zatepes? Course Module2 Give the siffenent resources whith should beconsiferedin butting and adopting soba ae Surategy and Technology ‘adopting he suatege in king the basins sucennfl techoology plays a smportantvole, aesring to Sisikaatian Follow (20.6, august 10) Corpor Level, Seatepen Retrieved November 26,2019, 0m 2 : the cidinumet suatepes ste E buninety © commerce © commumsacontarsugh M03 Conferencing Web publishing intereet and elephoneand F-olaboration ‘Atecmology strategy refers tothe set of decisions that are related to the willzaton and {evelopmentofsrstepy and ttanded to confer an acrantage to he business onganaation ‘Technologies are the focus of this sategy and in some cases, the people who directly ‘nage the sid snatepes Ts formal vision which guide he seyustuon aloeton ana IT ‘esouree maragement so as 1 help in fling the cbjecives of busmess organzasics. ‘Documentation of planning assumptons and success metic developmeat areinvotred ina successiul technology suategy. A misson-drven strategy is esablshed by Se said Gocumentaton vvnen gives asrurancetatthere wl te an signin ofiniuativas th tha ‘sinessongunisatons pole and objecures With thi aspect he primary sbjesuve of Geveloping a technology strategy isto make sure there val be 2 realzation of basmess ‘Seateges though rechuslogy wil be achieved Of couse, vesting to technology wil be ‘aigneciom meousness D. Guide Questions: “Ansvar folowing cherwhst you learad fro the Azcussonsr fon Cheskyour anowere rom te promced answer hay othe end of is male. Tere sno ed to bm Youranswers to 4, Discus the rl oftechnslogy in business brie: 2, Enumerate some internet strategies that may beadopte in business Answers to the Guide Questions Formulationof Suategies (Quesuon 1: metres eves of strategy aerunctonal pusmess, and corporat lavas. ‘The functional level refers 0 a. suategy level at che business ‘organiziuon’ operanng ena. The nusines level Is under the cnporstesuategy anda mens to posl achiewemen: cf a spentc unit in the bushess organization yvand the corporate level the top strategy level ise business organization (Question 2: Ina comport stategé plan the following should be induded are an (overall business organzatow’s vison, focus ava, corpora Vales and State objecntes: ‘SurategiesinCorporateLevelontine| education O€d ssratege Management Formulation Strategy (&) (qeestcst. Sratagies =the corporate level ae the ssbiy sates) pansion sagy, revenchment seategy and combination svategy. In 2 sablity soteyy, te ‘business anga-ation retains ite present svategy (corporate level). [e ontinss to ocuson its present matkets and product, whie expansion strategy is alsolmown a5 ntensiicaton for growth strategy andthe most popular corporate suategy. The actives ofthe company ‘are expanded using this strategy. Retrenchmenr strategy 5 response to industy and market decline Itamsatiheacieiy concentration trough oneor mere cael business sumpe reduction, Frnally combination swategy isan approach wherein the business the orguizaton adopts a mixture of sabi, expansion, and. retreachment srateges (Question 2: The diferent expansion strategies which business frm can pursue ae epsnson anrough coneanuston capanien ehrough smtagaton expansion through divrsiation expansion ‘hrouga cooperation aid cepanson eough itemanonsioraon (Global Environment Strategy (question. Gstal srategies oversee nin areas and these are Sntrnational subi-natonaland gba (Quests 2: Te dtanentrasources nick shoud be sonscereain bulcing ana adoptinga gota ststegy big sapitdizatio because ofthefact tat ‘eguieman for tancng canbe demancing svatege andmanegera, lesdarshp 2 az to comeup ith the apprepristesstepes to sunin sucess maragement ara employes capabilites ara experuiseand iferentiated and quality products and series (Question Technology lays an inrportant role in making adopting the stateges ‘mmalng the busines access ‘Question 2 Sematemnetstratesiesthathay be adorted in business are Encinas Ecommerce; E-commumiesson through viaee conferencing. We publishng,istemet andtelepaone nd F-claboraton References and Supplementary Materials Books and Journals