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Chapter 13

Control for differentiated Strategies

Learning Points
Corporate Strategy Business Unit Strategy Top Management Style

Strategy
combination of competitive moves & business approaches that managers employ to lease customers, compete successfully and achieve organizational goals The strategy describes the general direction in which an organization plans to move to attain its goals.

A companys strategy consists of the

Types of Strategies Three types: 1. Corporate Level Strategies Top level Management 2. Business Unit Level Strategies Middle level Management 3. Operational Strategies Bottom level Management

Types of Strategies

Top Level Mgt. Middle level Management

Corporate-Level Strategies

Business Unit level Strategies Operational Strategies

Bottom Level Management

Formulation of Corporate strategy

Types of Corporate Level Strategies

Single Industry firm

Product

Market

E.g. McDonalds, Pizza hut, Wrigley, Bata, Ford Motors

Related Diversified Firm


Product (a) Product (b) Product (c) MARKET

e.g. HLL, P&G, Gillette, Nestl, Johnson & Johnson, Vidiocon

Unrelated Diversified Firm


Product (a) Product (b) Product (c) Market (a) Market (b) Market (c)

E.g. Reliance, Tata, ITC, Godrej

Business Unit level Strategy


Popular techniques:

BCG Matrix Portfolio Matrix Competitive Analysis Value Chain Analysis

BCG Matrix

General Electric Planning Model

Porters Five force Model

Value Chain Analysis

Operational Strategies

Merely implementation Target oriented work Fire fighting activities

Thank You

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