The document outlines various business strategies including value chain analysis, supply chain management, market penetration, product development, low cost leadership, differentiation, and operational effectiveness. It also discusses lifecycle strategies of product introduction, growth, maturity, and decline. Corporate strategies include integrative growth through acquisitions, global strategies treating the world as one market, and considering market share and growth when developing strategies.
The document outlines various business strategies including value chain analysis, supply chain management, market penetration, product development, low cost leadership, differentiation, and operational effectiveness. It also discusses lifecycle strategies of product introduction, growth, maturity, and decline. Corporate strategies include integrative growth through acquisitions, global strategies treating the world as one market, and considering market share and growth when developing strategies.
The document outlines various business strategies including value chain analysis, supply chain management, market penetration, product development, low cost leadership, differentiation, and operational effectiveness. It also discusses lifecycle strategies of product introduction, growth, maturity, and decline. Corporate strategies include integrative growth through acquisitions, global strategies treating the world as one market, and considering market share and growth when developing strategies.
A. BUSINESS STRATEGIES VALUE CHAIN ANALYSIS – LOOKING AT EVERY PHASE OF THE BUSINESS FROM PROCUREMENT OF RAW MATERIALS TO THE TIME PRODUCTS REACH ITS CONSUMERS OR END USERS
SUPPLY CHAIN MANAGEMENT – BROAD CONTINUUM OF SPECIFIC ACTIVITIES EMPLOYED
BY A COMPANY
1. SUPPLY MANAGEMENT (ACTIVITIES: SOURCING AND ORDERING, INVENTORY
MANAGEMENT) - FOCUS ON MANAGING SUPPLIER RELATIONSHIPS, IDENTIFYING STRATEGIC SOURCES, ACCURATELY FORECASTING DEMAND REQUIREMENTS, UNDERSTANDING INVENTORY MANAGEMENT - GOAL IS TO OBTAIN THE RIGHT MATERIALS BY MEETING QUALITY REQUIREMENTS IN THE RIGHT QUANTITY FOR DELIVERY AT THE RIGHT TIME AND THE RIGHT PLACE, FROM THE RIGHT SOURCE, WITH THE RIGHT SERVICE, AND AT THE RIGHT PRICE.
2. PRODUCTION AND OPERATION (ACTIVITIES: MANUFACTURING, ASSEMBLY)
- FOCUS ON QUALITY RAW MATERIALS AND PARTS, EFFICIENT PRODUCTION LAYOUTS AND PROCESS, AND EMPLOYEES WITH SKILLS AND MOTIVATION WHICH ARE ESSENTIAL TO EFFECTIVE TRANSFORMATIONAL PROCESSES.
- GOAL IS TO MINIMIZE COSTS OF SAFEKEEPING AND TRANSFERRING INVENTORY UNITS BY CONSIDERING LOCATION SITE, EASE, GRAVITY OF TRAFFIC, SAFETY AND LABOR REQUIREMENTS
4. MARKETING AND SALES (ACTIVITIES: PROMOTION, SELLING)
- FOCUS ON OFFERING COMPETITIVE PRICING, SPECIAL OFFERS, QUANTITY DISCOUNTS, AND VOLUME SALES THROUGH ADVERTISEMENTS - DEVELOPING SALESPEOPLE THROUGH RESULT-ORIENTED SALES TRAININGS, GIVING COMPETITIVE SALARIES
B. GROWTH STRATEGIES – INCREASING IN VOLUME AND TURNOVER
1. MARKET PENETRATION – SELLING MORE OF ITS PRODUCTS/SERVICES TO CURRENT CUSTOMERS (EX. SELLING YAKULT IN 6 PACKS, THEN 12,ETC) 2. MARKET DEVELOPMENT – SEEKING AND TAPPING NEW MARKETS (EX. SELLING PASTEL TO VISAYAS AND LUZON) 3. PRODUCT DEVELOPMENT – SELLING NEW PRODUCT TO EXISTING MARKET (EX. DOWNY WITH PERFUME SCENT) 4. DIVERSIFICATION – CREATING NEW AND DIFFERENTIATED PRODUCTS FOR NEW CUSTOMERS (EX. NIKE +RUN TRACKING SOFTWARE)
C. COMPETITIVE STRATEGIES – LONG TERM ACTION PLANS PREPARED TO GAIN COMPETITIVE
ADVANTAGE 1. LOW COST LEADERSHIP STRATEGY – OFFER PRODUCTS AT LOWEST POSSIBLE COST (EX. PISO FARE) 2. BROAD DIFFERENTIATED STRATEGY – PROVIDE VARIETY OF PRODUCTS/SERVICES AND FEATURES THAT COMPETITORS CANNOT OFFER TO COSTUMERS (EX. AMAYA’S PARAGLIDING) 3. BEST COST PROVIDER STRATEGY – COMBINATION OF LOW COST LEADERSHIP AND BROAD DIFFERENTIATED STRATEGIES (EX. KAKING) 4. FOCUSED LOWER COST STRATEGY – CONCENTRATES ON LIMITED MARKET SEGMENT AND CREATES MARKET NICHE BASED ON LOWER COSTS (EX. PURCHASE STOCKS IN BULK, AVAIL DISCOUNTS, TO SELL AT LOW PRICES, ETC) 5. FOCUSED DIFFERENTIATED COST STRATEGY - CONCENTRATES ON LIMITED MARKET SEGMENT AND CREATES A MARKET NICHE BASED ON DIFFERENTIATED FEATURES (EX. BRANDED, HIGH-END PRODUCTS) 6. INNOVATION STRATEGY – NEW AND ORIGINAL PRODUCTS/SERVICES; DIFFICULT TO IMPLEMENT 7. OPERATIONAL EFFECTIVENESS STRATEGY – AVOID FINANCIAL LEAKS AND INEFFICIENCIES, HARNESSING BETTER FACILITY AND EQUIPMENT MAINTENANCE, INCREASING WORK FORCE PRODUCTIVITY 8. ECONOMIES OF SCALE – LOWERS COSTS BECAUSE OF VOLUME IN PRODUCTION 9. TECHNOLOGY STRATEGY – GOING DIGITAL (ACCOUNTING, MARKETING,ETC) - ENTERPRISE RESOURCE PLANNING – FACILITATES PROCESSES TO RADICAL SPEED BY SHORTENING COMPLETION TIME
D. LIFECYCLE STRATEGIES – LIFESPAN OF A COMMODITY OR SERVICE I.E FROM INTRODUCTION
STAGE TO ITS GROWTH, MATURITY THEN DECLINE STAGE 1. INTRODUCTION STAGE – LAUNCHING THE PRODUCT/SERVICE FOR ACCEPTANCE (PROMOTION, GIVING DISCOUNTS, MARKET DEVELOPMENT) 2. GROWTH STAGE – GAINS ACCEPTANCE BY THE CONSUMERS, SALES SLOWLY INCREASE (BRANDING, CUSTOMER LOYALTY) 3. MATURITY STAGE – ESTABLISHED PRODUCTS TENDS TO BE STEADY (REINVENTING, FORMULATE NEW MARKET STRATEGIES) 4. DECLINE STAGE – REACH ITS LOWEST POINT, SALES AND PROFITS DECLINE (AGGRESSIVE MARKETING OR SIMPLY EXIT THE MARKET)
E. STABILITY STRATEGIES – COMFORTABLE WITH CURRENT MARKET NICHE; NOT ADOPTING
ANY GROWTH OR COMPETITIVE STRATEGY
F. RETRENCHMENT STRATEGIES – WHEN A COMPANY ENCOUNTER SERIOUS DIFFICULTIES
1. LIQUIDATION – BUSINESS MAY BE TERMINATED AND ASSETS ARE SOLD 2. DIVESTMENT – WHEN COMPANY DOES NOT FIT WELL IN THE ORGANIZATION, STOCKHOLDERS WOULD SELL IT OR SET AS SEPARATE CORPORATION
G. CORPORATE STRATEGIES – WIDER SCALE OF GROWTH STRATEGIES
1. INTEGRATIVE GROWTH STRATEGY – EXTERNAL GROWTH STRATEGY; INVOLVES INVESTING RESOURCES TO ANOTHER COMPANY; ACQUISITION STRATEGIES
HORIZONTAL INTEGRATION – ACQUIRES ANOTHER COMPETING BUSINESS (JOLLIBEE
BOUGHT MANG INASAL) VERTICAL INTEGRATION – CONSOLIDATION INTO AN ORGANIZATION THE ASPECTS OF A PRODUCT’S PROCESS (BUYING ONE OF ITS RAW MATERIAL SUPPLIERS – BACKWARD INTEGRATION; BUY ITS DISTRIBUTORS – FORWARD INTEGRATION)
2. GLOBAL STRATEGIES – TREATS OR CONSIDER THE WORLD AS A WHOLE, ONE MARKET
AND ONE SOURCE OF SUPPLY WITH SLIGHT LOCAL VARIATIONS (MCDONALDS, JOLLIBEE)
INTERNATIONAL STRATEGY – SELLS EXCESS PRODUCTS OUTSIDE HOME MARKETS (RED
BULL (AUSTRIA) STRATEGY IS HOSTING EXTREME SPORTS EVENTS ALL OVER THE WORLD) MULTINATIONAL STRATEGY – INVOLVED IN A NUMBER OF MARKETS OUTSIDE THE HOME COUNTRY (NESTLE)
2 FACTORS THAT IS CONSIDERED IN CORPORATE STRATEGIES
1. MARKET SHARE – RELATIVE TO SALES PERCENTAGE OF A COMPANY IN RELATION TO TOTAL SALES PERCENTAGE OF THE MARKET CONSIDERED 2. MARKET GROWTH – INCREASE IN DEMAND OVER TIME