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1#'. diversiication 1#'. diversiication 1#(.
1#(. dierentiatidierentiationon 1#). cost leadership 1#). cost leadership 1#+. ocus
1#+. ocus 1#8. glo$ali%ation 1#8. glo$ali%ation 1#,. multidomestic 1#,. multidomestic 1&. transnational 1&. transnational 1&1. leadership 1&1. leadership
1&#. strategic execution 1&#. strategic execution
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1&&. S9:" includes strengths2 weaknesses2 opportunities2 and threats.
1&&. S9:" includes strengths2 weaknesses2 opportunities2 and threats.
1&'. =lo$ali%ation strategy2 transnational strategy2 and multidomestic strategy.
1&'. =lo$ali%ation strategy2 transnational strategy2 and multidomestic strategy.
1&(. "he three ocuses
1&(. "he three ocuses are core competencies2 synergyare core competencies2 synergy2 and 2 and value creation. Core competence is something the organi%ation does very value creation. Core competence is something the organi%ation does very well inwell in
comparison to its competitors. core competence represents a competitive advantage $ecause the company acuires expertise that competitors do not comparison to its competitors. core competence represents a competitive advantage $ecause the company acuires expertise that competitors do not have. Synergy occurs when
have. Synergy occurs when organi%ational parts interact to produce a @oint eect that is greater than organi%ational parts interact to produce a @oint eect that is greater than the sum o the sum o the parts acting alone. "hethe parts acting alone. "he organi%ation may attain a special advantage with respect to cost2 market po
organi%ation may attain a special advantage with respect to cost2 market po wer2 technologywer2 technology2 or 2 or management skill. ?management skill. ?alue creation should $e at alue creation should $e at the heartthe heart o strategy
o strategy. ?a. ?alue is the com$ination o lue is the com$ination o $eneits received and costs paid $$eneits received and costs paid $ y the customer. >anagers help their companies create value $y devisingy the customer. >anagers help their companies create value $y devising strategies that exploit core competencies and
strategies that exploit core competencies and attain synergyattain synergy..
1&). "here are three levels
1&). "here are three levels o strategy in an o strategy in an organi%ationB corporate-leveorgani%ationB corporate-level2 $usiness-level2 and unctional-level. Corporate-level strategil2 $usiness-level2 and unctional-level. Corporate-level strategies involve thees involve the whole organi%ation. "his level o strategy is most
whole organi%ation. "his level o strategy is most concerned with answering the uestionB 9hat $usiness concerned with answering the uestionB 9hat $usiness are we in0 "hese types oare we in0 "hese types o decisions oten decisions oten involve issues o growth2
involve issues o growth2 retrenchment2 andHor @oint ventures. ;usiness-level strategies are concerned with the uestion /ow retrenchment2 andHor @oint ventures. ;usiness-level strategies are concerned with the uestion /ow do we compete0 "heydo we compete0 "hey
ocus on how the individual $usiness unit competes within its industry. "hey may involve such issues as advertising2 product changes2 and
ocus on how the individual $usiness unit competes within its industry. "hey may involve such issues as advertising2 product changes2 and new- product development. Funct
product development. Functional-level straional-level strategies are ctegies are concerned with the uestoncerned with the uestion o /ow do we support the $usineion o /ow do we support the $usiness-level strategyss-level strategy0 3nvolving all0 3nvolving all o the organi%ation!s ma@or unctions2 these types
o the organi%ation!s ma@or unctions2 these types o strategies link the unctional unit o strategies link the unctional unit with the strategic $usiness unit.with the strategic $usiness unit.
1&+. Strategy ormulation includes the planning and decision making that lead to the esta$lishment o the irm!s goals and the development o a 1&+. Strategy ormulation includes the planning and decision making that lead to the esta$lishment o the irm!s goals and the development o a speciic strategic plan. lso
speciic strategic plan. lso2 it includes assessing the e2 it includes assessing the e xternal environment and internal pro$lems and integrating the rxternal environment and internal pro$lems and integrating the r esults into goals and strategies.esults into goals and strategies.
Strategy implementation uses managerial and organi%ational tools to
Strategy implementation uses managerial and organi%ational tools to direct resources toward accomplishing strategic results.direct resources toward accomplishing strategic results.
1&8. "he two dimensions o the matrix are $usiness growth rate
1&8. "he two dimensions o the matrix are $usiness growth rate and market share. 9hen growth is high and share is high2 and market share. 9hen growth is high and share is high2 the S;< has the $estthe S;< has the $est situation and is called a star
situation and is called a star. 9hen growth is low and share is . 9hen growth is low and share is high2 the S;< is known as a high2 the S;< is known as a cash cowcash cow. 9hen growth is high $ut . 9hen growth is high $ut share is low2 the S;<share is low2 the S;<
is a uestion mark. 3n the ourth u
is a uestion mark. 3n the ourth u adrant2 growth and share are $oth low. "his is the worst situation2 and the S;< is a dog. "he strategicadrant2 growth and share are $oth low. "his is the worst situation2 and the S;< is a dog. "he strategic recommendations areB 617 invest in starsG 6#7 milk the cash cowG 6&7 invest in uestion marks to
recommendations areB 617 invest in starsG 6#7 milk the cash cowG 6&7 invest in uestion marks to create stars or divest the uestion marksG and 6'7create stars or divest the uestion marksG and 6'7 divest the dogs.
divest the dogs.
1&,. *orter
1&,. *orter identiied three competitive strategiesB dierentiatiidentiied three competitive strategiesB dierentiation2 cost on2 cost leadership2 and ocus. dierentiation strategy involves the oleadership2 and ocus. dierentiation strategy involves the o rgani%ationrgani%ation attempting to distinguish its product or
attempting to distinguish its product or service rom those o service rom those o its competition. dvertiits competition. dvertising2 product eatures2 and sing2 product eatures2 and customer service are some o customer service are some o thethe ways an organi%ation can successully dierentiate.
ways an organi%ation can successully dierentiate. cost leadership strategy is $ased on cost leadership strategy is $ased on the organi%ation achieving a low-cost position relative tothe organi%ation achieving a low-cost position relative to the competition. c
the competition. company may achieve a ompany may achieve a cost leadership through the operation ocost leadership through the operation o eicient acilities eicient acilities2 cutting costs2 or 2 cutting costs2 or maintaining tight cost control.maintaining tight cost control.
9hen a company uses
9hen a company uses a dierentiation or a cost a dierentiation or a cost leadership strategy in a particular market or $uleadership strategy in a particular market or $u yer group2 they are yer group2 they are employing a ocus strategy. "hisemploying a ocus strategy. "his strategy allows the organi%ation to concentrate on a
strategy allows the organi%ation to concentrate on a narrow market niche.narrow market niche.
1'. "he three types
1'. "he three types o glo$al strategies are glo$ali%ation2 multidomestic2 and transnational. =lo$ali%atio glo$al strategies are glo$ali%ation2 multidomestic2 and transnational. =lo$ali%ation means that a on means that a company!s product designcompany!s product design and advertising strategies are standardi%
and advertising strategies are standardi%ed throughout the world. "his approach is $ased on ed throughout the world. "his approach is $ased on the assumption that a single glo$al market exists orthe assumption that a single glo$al market exists or many consumer and industrial products. "he
many consumer and industrial products. "he theory is that people everywhere theory is that people everywhere want to $uy want to $uy the same products and the same products and live the same way. >ultidomesticlive the same way. >ultidomestic strategies $elieve that competition in each country is handled
strategies $elieve that competition in each country is handled independently o industry competition in other independently o industry competition in other countries. "hus2 marketing2 advertising2countries. "hus2 marketing2 advertising2 and product design is encouraged to $e modiied and
and product design is encouraged to $e modiied and adapted to the speciic needs o each country the company is present in. >any companies re@ectadapted to the speciic needs o each country the company is present in. >any companies re@ect the idea o a
the idea o a single glo$al market. "ransnational strategsingle glo$al market. "ransnational strategies seek to achieve $oth ies seek to achieve $oth glo$al integration and national responsiveness. true transnationalglo$al integration and national responsiveness. true transnational strategy is diicult to achieve2 $ecause one goal reuires
strategy is diicult to achieve2 $ecause one goal reuires close glo$al coordination while the other goal close glo$al coordination while the other goal reuired local lexi$ilityreuired local lexi$ility. /owever2 many. /owever2 many industries are inding that2 although increased competition means they
industries are inding that2 although increased competition means they must achieve glo$al eiciencymust achieve glo$al eiciency2 growing pressure 2 growing pressure to meet local needs demandsto meet local needs demands national responsiveness.
national responsiveness.
1'1.
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"he tools or
"he tools or putting strategy into action include visi$le leadership2 clear roles and putting strategy into action include visi$le leadership2 clear roles and accounta$ilityaccounta$ility2 human resources2 and 2 human resources2 and candid communication.candid communication.
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L ?isi$le ?isi$le leadership leadership is used is used to motto motivate peoplivate people2 shape e2 shape culture aculture and valuesnd values2 and 2 and model desimodel desired $ehaviorsred $ehaviors L
L Clear Clear roles aroles and accounta$ind accounta$ility ility include denclude delegating alegating authority authority and responsi$ilitynd responsi$ility2 creati2 creating teamng teams2 and s2 and deining rolesdeining roles L
L /uman /uman resource tresource tools iools include nclude recruiting recruiting employees2 employees2 providing tproviding training2 raining2 and mand managing tanaging transers ransers and promotand promotionsions L
L Candid cCandid communication ommunication is useis used to d to open lineopen lines o s o communication communication and to and to encourage encourage honesty and honesty and de$atede$ate
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