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7,1A

Business strategy is a long term

approach to

implementation a trims business. It is refers to the managerial game plan for a single business. The strategy is helping to achieve its business objectives. A business strategy plan is done when an opportunity or a crisis occurs.

B. Strategy: Strategies help an organization gather, analyze and organize intarnation. B. Strategy is a term used in business planning. It concerns strategic decisions about choice of products, meeting needs of customers, gaining advantage over competitors and creating new opportunities etc.

W is strategy? hat Long term objectives B. Strategies may include geographic expansion, Diversification, acquisition, product development, Market penetration and Retrenchment etc.

Strategy at different levels of Business: Strategies exist at several levels in any organization. (1) Corporate strategy: It is the overall managerial gave plan for a diversities company. Corporate strategy made to establish business positions in different industries. CS is often stated explicitly in a mission statement.

(2)

Business unit strategy: It is concerned more with how a business competes successfully in a particular market. It concerns strategic decisions about choice of products.

(3)

Operational strategy: It is concerned how to manage front line organizational units within a business and how to prefer strategically significant operating tasks. Operating stuntegy therefore focuses on issues of resources processes people etc.

A single Business Company

Responsibility of executive level managers

B Strategy

Heads of mayor fame Lionel activities within a business

Fortional strategy (R & D,m Hance, Marketing human resource etc.)

Plant managers geographic unit managers

Operating strategy Plants, Sales districts, departments within functional areas

The strategy making a pyramid Strategic Mission Fundamental purpose of an organization. Identifying the scope of a firms operations in product and market terms. Ab. mission is the foundation for priorities, strategies, plans and work assignments. Clean B.M. Should have each of the following elements.
Purpose Why the B. exists

Strategy and scope What b.ad how

Values What mgt believes in Standards and Behaviors the rules that guide how the b. operates

Strategic Vision: Intended future state of a specific organization. Fundamental objectives or strategic planning Vision is a roadmap of a companys future. A strategic vision setting objectives, crating a strategy, implementing Strategic intent:

A companys strategic intent is long term The ST of an up-and-coming enterprise may be to overtake

the market leaders. Strategic objectives indicate strategic intent to stake out a particular business position. Strategic control It is the pr4ocess of monitoring. A unitical long term perspective. Various strategic adapted by the organization are haply its internal environment to be matched with the external environment. Care competency: Provides consumer benefit Not easy for competitions to copy. It can be leveraged widely to may products. It should be competitively unique.

So each b. strategy has a individual feature for their business. Mission and vision has to define for going ahead. Care competency competitor analyzer, strategic control have to maintain.

Stakeholder

A stakeholder is a person, group or organization that has direct on indirect stake in an organization. It can be affected by the organization actions, objectives and policies. An stakeholders are not equal and different stakeholders are entitled to different considerations. Types of stakeholder: 1. There are three types of stakeholder. PS are those ultimately affected

Primary stakeholder:

either Positively (beneficiaries) an Negatively. 2. Secondary stakeholder: aid delivery process. 3. Key stake holder: Creditors, customers, directors, SS are the intermediaries in the

employees, government, owners, suppliers etc.

Stakeholder analysis: A SA is a technique and use to identify and assess the importance of key people, groups of people or institutions that may significantly influence the success of year activity or project. Use a stakeholder analysis to: Identify people, groups and institutions that will influence your initiatie. Develop strategies to get the most effective support possible for your initiative.

Reduce any obstacles to successful implementation of your program. Classifications of stakeholder: Thee are three types of stakeholder in organization. (1) Employers as a stakeholder. Increasing or Maximizing profit. Increase of sales development of various department continuous flow of work Expansion organization or business Expansion of goodwill (2) Employee as a stakeholder Increase of salary Increase of various tactility Inspiration for working Increase of skills and responsibility
Expansion of working opportunities.

(3) Government as a stakeholder Increase of tax revues Decrease of unemployment Development of economy Social welfare
Increase of rate of educated person.

Relationship between organization and stakeholder: 1. Entrepreneur The tarmation of company an organization accept Entrepreneur. They provide capital fur formation. 2. Manpower Manpower is a one kind of stakeholder. They work in organization. They are playing a vital role far going ahead.

3.

Supplier Huge Raw materials, Instrument, Invest.

4.

Employer Employee as a stakeholder because of his proper ability

and responsibility. A organization Depend on Employee.

Stakeholder Mapping: SM is the process of creating such pictures to clarify the position of the stakeholders of the organization.

One example of such map is called power, legitimacy and urgency Model. This model is described by Mitchell and wood. Stakeholder behavior in to 7 types. depending on the combination of true characteristics.

(1)

Power: Power of the stakeholder to influence the organization.

(2)

L of the relationship and actions of the stakeholder with the organization in terms of desirability an

appropriateness.
(3) urgency: U of the requirements being set far the

organization by a stakeholder in terms of criticality.


(i)

Number 1, 2 and 3 in the picture are derived as the latent stakeholders. They are sub classified.

(ii)

Number 4, 5 and arte defined as Expectant the stakeholders showing all 3 characteristics are called definitive stakeholders.

Environmental audit: Definition of environment: Circumstances, stresses, competitive, demographic, economic, political, regulatory and technological factors that effect the survival operations and growth of an organization.

Environmental audit: EAs are systematic and objective assessments of the environmental status and performance of properties, facilities, process and operations. It is also can be used to a sees the quality of the existing environmental mgt system. self initiated audits are the best practical means to ensure that environmental

problems are identified. It can be more effective when their use is voluntary and not mandated. Audits should be conducted by trained, experienced environmental professionals.

The Environmental protection agency states that an effective environmental auditing system operating in todays business world indeed the following elements.

Five forces Model of Porter This is the outside business strategy tool. It is used to mave an analysis of the attractiveness of an industry structure. The 5 Fundamental competitive forces are discussed below.

1.

Threat of new entrants New entrants to an industry can raise the level of

competition. As a result reducing its attractiveness. New entrants depends on the barriers to entry. Key barriers to entry include Economics of scale Capital Access to tech lay 2. Threat of substitutes To ts products depends on 3 years willingness to substitute

The Relative price and performanance of 3. Power of suppliers Supply materials and others products into the industry. They bargaining power of suppliers will be hign when. Many buyers and few dominant suppliers Undifferentiated and highly valued products. Role of quality and service. 4. Power of Buyers

Buyer are the people who create demand in industry. The power of buyers greater when.
Many sellers and few dominant buyer in the industry. Buyers theaters to integrate backward into the industry Profitability of buyers.

5.

Intensity of Rivalry The I of R between competitors in an industry will depend

on: The structure of completion The structure of industry costs Degree of differentiation Switching cost Exit Barriers

Five tares model, which is described below:

New Entrants

Supplier

Industry competitor Intensity of Rivalry

Buyers

Substitutes

Organizational audit: The organization audit is based on the size and complexity of the organization. It is provided a sensible cross functional

structure to calculate business Performance. When make the we have to evaluate these elements. Verity the organizations strategy Identify key business unit grieves Design core work teams Allocate unit support resource Design the Mgt structure Design coordination and development system Implementation the new design.

Benchmarking: Process of identifying Understand and evaluate the current position. To determine the best pretices among competing firms

Application of Bench making in valves four key step: 1. Underfed and existing business processes 2. Analyze the business process of others 3. Compare own business performance with that of others analyzed. 4. Implement the steps necessary to close the performance gap.

Types of Benchmarking:

1. Strategic B 2. Performance or competitive B 3. Process B 4. Functional B 5. Interval and External B 6. International B SW analysis: OT Swat analysis is an important tool for auditing the overall strategic position of a business and its environment. Some of the key areas to insider when identifying and evaluating strengths, weakness, opportunities and threats. Strengths and weaknesses positive and Negative effect Both are internal factors:

Strengths 1. Technological Skills 2. Leading Brands 3. Distribution channel 4. Customer loyalty 5. Management Opportunities and tarents effect: Strengths 1. Technological 2. Lawer personel taxes 3. New distribution channel 4. Changcim population age

W eaknesses 1. Meak brands 2. Poor access to distributions 3. Sub-Scale 4. Low customer Retention

W eaknesses 1. Chranging ceatoner tastes 2. Tax increases 3. Closing of geographic markets

structure Value chin analysis Analysis of the competitive strength of the business.

Steps in vca
1. Break down a market. 2. Assess the potential for adding value via cost advantage or

differentiation. 3. Determine strategic built around focusing on activities. 4. Law cost advantages and disadvantages.

Product positions: Product positions have to serve to the customer who are use the product. We have to see these elements. Customers position. How use it Satisfaction and unsatisfaction Product durability Customers mind.

Demographic influence: Each organization has a own feature or goals to the going ahead. Forever each organization has a individual strategic positioning techniques. These positioning techniques are applied in current Business position. So we have to observe these positions.

Recently I was visited Beximco Pharmaceuticals Ltd. Bp LTD is well reputed company in Bangladesh. I was observing their SPTs. Now described as below. 1. Marketing Research Recording and analyzing of data about problems relating to the marketing goods and services. MR can uncover critical strengths and weaknesses. 2. Opportunity analysis: Assessing the costs, benefits and risks associated with marketing decisions. 3. Customers analysis: Customer needs, desires and wants. developing customer profiles and analyzing customer information. Monitoring present and potential customers buying patterns. 4. Product and service planning strategy analyzing the test marketing, product and brand positioning, devising warranties, packaging adding extra feature sue as product quality and style, deleting old products. Test alternative marketing plans and to farecast future sales of new products. 5. Selling products/services strategy

selling includes such as advertising, sales prometion, publicity, personal selling, sales force management. 6. Distribution strategy Distribution channels such as, Retinal site locations, inventory levels and locations, transportation system. Sometime this firm some of the most complex and challenging decisions facing a firm concern product distribution. Selective distribution are following 7. Product differentiation Physical product Pertarmance Durability Reliability Reparability 8. High investments 9. Modern technology 10. Competitor analysis 11. Competitive advantages 12. continuous flow of work 13. Working and living faculty 14 R&D they also follow the ans off matrix strategy.

1. Market development 2. Product development

3. M. Penetration 4. Diversification As M is one of the most well know frameworks for deciding upon strategies for growth. At present their overall growth rate in High position there has no stability in this time. Will efficiency worker and employee. They follow the challenger strategy. In this time has no mergers and acquisitions Modern technology are used. In future their business will be expansion info the global Market place.

comment: Their SPTs are systematic and generatic way. They are following these strategies from production to distribution. Their strategies are effective and well planned. Each strategy has a individual features and they are applied this strategy in each section.

As a companys result: Ansoffs Mafris The ansotts frowth Matria is tool that help business decide their product and market growth strategy. This market suggest that a business attempts to grow depend on whether it market new or existing products in new or exiting market. These are decribed below.

1.

Market penetration: The business focuses on selling existing products into

existing Markets. Increase our revenue by promoting the product repositioning the brand. Increase the Market share of current products. 2. Market development: Sell its existing products into new markets. New distribution channels and New product dimensions and new geographical markets.

3.

Products development: Introduce new products into existing markets.

develop and innovate new products offerings to replace existing ones.

4.

Diversification New product in new Market.

Risk strategy because the business is moving into new markets. Related and unrelated Diversification strategy.

Strategic thanking is the one of the most essential part of analysis to the market, customer needs, going and maintaining competitive advantage. Strategic planning have to tartest for future direction of the competition.

Strategic thanking: demonstrate the strategic thanking are described below. 1. Define the mission and vision Mission and vision is the

one of the analytical work. Mission means what is to be done and Fundamental purpose of an organization vision is the desired an intended future state of a specific organization. Microsoft vision a computer in every home, running windows.

2.

Define the goals and objectives without goals you cannot

go ahead. So at first are have to define organization goals and define the objectives. Every unit in a company needs concrete, measurable performance targets that contribute meaningfully tow and achieving company objectives.

3.

Define problem properly You have to must define the problem propurly. Every has a

individual problem.

4.

Making the organization structure fit planning needs. The organization structure have to adpat with fit planning

structure organization structure have to adapt to all section or department. Suitable organization structure have to made.

5.

Analyzing organizational strangth and weaknesses as brand, distribution chennel and management,

leading

weaknesses means weak brand and poor assess to the distribution.

6.

Personality Dicmention There are the may of personality diemention.


i.

Inductive reasoning step by step Deductive reasoning- think logically (cause and effect)

ii.

7.

Calculative nature We have to nature calculative

8.

The link between strategic planning and control is

sufficient strategic planning have to control without control you cannot success and go ahead.

9.

The intonation for preparing the plans is sufficient for

planning for action.

Information has to sufficient for actions. 10. Continuing to emphasize planning and Implementing

strategy. 11. Communicating strategies to all key decisions making

managers.

12.

Managers are adequately prepared for strategic planning.

So you have to think deeply to implementation and decision making for taking decision about this. Forever information and planning must be curetted and logical.

14.

Future direction.

It is a one kind of leadership part. You have to lead the organization and forecasting power applied.

15.

Needs of customers Customer needs, wants and d4emands have to analyze,

customers are the king of queen in market customers create a demand in any products.

16.

Portfolio analysis

Strategy Formulation technique Sound organizational technique Sound organizational activities should be emphasized Un sound over deemphasized.

The most popular business portfolio tools are the BCG growth share martin. Boston consulting group approach.

A leading mgt consulting firm. The eight circles represent the current sizes and positions of eight business units in a

hypothetical company. The location of each business unit indicates its Market growth rate and relative Market share. The market growth rate on the vertical axis indicates the annul growth rate of the market. A MGR above 10 percent is considered high. Relative Market share is measured on the horizontal axis RMs is dividend into high and low share, using 1.0 as the dividing line. RMS is drawn in log scale, so that equal distances represent the save percentage increase.

The growth share Matrix divided into four cells, each indicate the different types of business. 1. Question Mark High growth markets and low RMSs A lot of cash because the company has to spend money on plant, equipment, personnel. Wants to overfare the Market leaders.

2.

Stars High grown to market

High share business Spend substantial founds to keep up with the high market growth rate.

3.

Cash cows

Low growth rate

High share business or products. Need less investment to hold their MS

4.

Dogs Weak Market shares Low growth markets

Company must determine whether its portfolio is healthy. A unbalanced portfolio would have too many dogs an question market and too few stars and cash cows.

SPACE The strategic position and action Evaluation (SPACE) matrix. Aggressive, conservative, detanhsive or competitive strategies are most appropriate for a give organization. The SPACE matrix represent two internal dimentions and two external detentions these four factors are analyzing the organizations overall strategic positions. The steps required to develop a SPACE Matrix are as1. Define the financial strength, competitive advantages, environmental stability and industry strength.
2. Plot the average scores for FS, IS, ES and C/A and the

appropriate axis in the SPACE Matrix.

Some examples of strategy profiles that can energe from a SPACE analysis.

Ignure Figure Figure

6.5 6.4 6.2 Page-195

Ansoffs growth verture Martix

Strategy evaluation and selection is a one kind of difficult work for any organization. Each strategy evaluation and section is not just a task for top executives. Lower level managers too must be involved in the strategy evaluation and strategic planning process.

Integration strategic: There are four types of integration strategic. Backward, Forward, horizontal and vertical integration strategic. Now we discussed as below. (1) Horizontal integration: A strategy of seeking ownership of or increased control over a firms competitors. Strategic Mgt today is increased use of horizontal Integration as a growth strategy Mergers, acquisitions and takeovers among competitors allow for increased economics of scale.

Vertical integration:

A firm to gain control over distributions, suppliers and competitors. Gaining ownership or increased control over distributors or retailers. Vertical intervention is franchising.

Related diversification: Market and products share some communality with existing products. It builds on assets on activities which the firm has developed This closeness can refuse the risks associated with

diversification. Example: Banks developing insurance products.

Unrelated diversification Growth in products and markets that are completely new. No commonality with existing products and markets It is also now as conglomerate diversification.

Limited Growth strategic: Ansoffs Matrix starategy previouspage

BFC is the challenging food service retailer in the global customers Marketplace. Fifty percent approximately 2000 owner around the world. Its food quality specifications equipments

technology, marketing and training programs, operating systems, site selection techniques and supply system are standard through out the world. Its vision noas to be the worlds best quick service restaurant.

The companys future strategy are discussed below. 1. Strategic priorities were cusuring continued growth. 2. Providing exceptional customers care 3. Remaining an efficient and quality producer.
4. Developing at every level of the organization.

5. Sharing best prectices among all units world wide. 6. Reinventing the fast food concept by fostering innovation in the companys new. 7. Marketing and distribution channels are developed. 8. Developing the segmentation. 9. Develop the Human and licensing strategy their another future strategy are marketing and food related. Improve the taste appeal of the items offered. Expand product offerings into new categories of fast food. Restaurant were affirmative and pleasing inside and out. Play areas for children where feasible. Implarove the image of quality services and value globally via . heavy media advertising

Promote more frequent customers visits via the addition of attractive new items. Low price specials.

At present FC is the challenging food service retailer in the global customer market place. There are many future strategies are taking to step for implementing and going ahead.

Each strategy has a individual features. When you start a new strategy for a given organization then you heave to need resource requirements to implement a new strategy. Each strategy implementation has a difficult work for a given organization. When you implementation a new strategy for a organization then you have to need resource time, place etc. Now we discussed as below. 1. Finance: Without finance you cannot start your business.

Minimum finance you have to need to start a business and strategy implementation a business and strategy implementation owners finance have to stay. Therefore you can collect finance from Banking section, investment section and joint menfure. 2. Human Resource

Human resource is a one kinds of core competencies qualified human resource have to collect from different level for every department.

3.

Training Programme Training program have to stay for create a new qualified

workers. Each department has a individual training programme.

4.

Place Place is one of the major subject for new organization.

When we select the place then our revaluate this facality. Transpert system and Road faculity, Elecricity facality, people quality etc.

5.

Materials Materials, Industrial Instrument home to need to produce

Industrial matarials are one of the major subject for starting a business. Moderns Technology and Motarials have to used. 6. Time A business cannot create one day. It is waltigfor much time for starting a business much time you have to spend to implement you strategy. So time is the maintain for implementing a new strategy.

Resource allocation: Resource allocation is central Mgt activity. Resource allocation is often based on political or personal factors. All organization has at least four types of resource allocation physical resource,

Human resource, technological resource and financial resources. It is the process of allocating resources among the various projects or business units.

So wehn you started a new business then you have to need about specific knowledge of resource allocation.

Strategic planning: Strategic planning determines where an organization is going over the rext years or more and how its going to there. The process is organization wide, focused on major function such as a division department or other Major function.

Prepare a strategic plan bused on previous analysis: A satisfactory strategic plan must be resulistic and attainable so as to allow managers and enter prencurs to think strategically and act operationally square pharmaceuticals is well reputed companys in Bangladesh and world. Spharmen is the challenging pharman service retailer in Bangladesh and global Market place. Its pharma Qualify Specifications. Equipment and technology, site selection perating system and supply system are standard through the Bangladesh and world wide.

Their strategic plan Based on previous analysis are given below towards a strategic plan.

1.

The vision The first step to develop a realistic vision previous page.

2.

The Mission P.P

3.

The values Relationship with the society at large customers, suppliers, employees etc.

4.

The objectives P.P

5.

The strategic The companys internal cash flow will found all future group. New products will progressively replace existing ones over the next three years.

6.

The goals Goals should be quantifiable, consistent and realistic.

7.

The programs It is get the implementation plans for the key strategics.

2.

USE Hindsight when stratgie planning Assess the current position Describe the actual strategies follwed over the past two

years in respect of products/services, finance, technology, Marketing etc.

The current vision is being realized.

Develop Drill Down: It is a vsetul technique for exploring performance. Netimcons 3. 4. SWOTs Keys to business strategies pc Develop Business strategic - Build on strengths - Resolve weaknesses - Expolit apportunities - Anaid thrats 5. 6. 7. 8. Assess possible future sowt Set out key long term objectives. Develop strategic planning worksheet. Action Planning Work plan, annual plan, mgt plan. include responsibilities and time lives with each objective.

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