Corporate Strategy
Introduction
Introduction
Kartei Details
| Karten | 17 |
|---|---|
| Sprache | English |
| Kategorie | BWL |
| Stufe | Universität |
| Erstellt / Aktualisiert | 10.01.2021 / 10.01.2021 |
| Weblink |
https://card2brain.ch/box/20210110_corporate_strategy
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| Einbinden |
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What is strategy ?
Long term direction of an organization, formed ba choices and actions about its ressources and scope, in order to create advantageous positions, relative to competitors and peers in changing environmental and stakeholders contexts.
Operational Effectiveness
Not strategy, simply performing similar activities better than rivals.
Competitive Strategy
Is about being different, choosing a different set of activities to deliver a unique mix of value
Characteristics of strategic decisions
- long term direction;
- scope of an organization activities;
- competitive advantage;
- strategic fit with business environment;
- organisation resources and competences ;
- values and expectations of power players
Strategy Process
Intent: Objectives, focus, motivation;
Analysis: Internal, external;
Decision: corporate, business and functttional level;
Action: Processes, practice, change
Implications of strategic decisions
- Complexity : you ask everybody for a decision to make and everyone has an other opinion, this is conflicting.
- Uncertainty;
- Operational decisions;
- Integration;
- Relationships and networks : companies go to conferences to have some contacts that help to identify new trends, discuss with people you know that can bring you the right answer;
- Change : it is important when you communicate a strategy early or late
It is really difficult to be friends with everybody while making some decisions.
Fundamental goals
- Mission
- Vision
- Goal
- Objective
Mission
describes what you’re doing and how you do it.
Vision
an abstract picture of the future
Levels of strategy
- Corporate level strategy
- Business level strategy
- Functional level strategy
3 levels need to be aligned --> integration in strategy
Corporate level strategy
Strategy that defines all the objectives and positioning of the organisationt, responsible to develop new strategy business units and they decide if they want to outsource a business unit.
Focuses on the head corporate of an organisation that says what they should be doing and what they shouldn’t be doing.
- geographical scope
- diversitty of products/services
- acquisition of new SBU
- How ressources are allocated
- Image of the brand
Business level srategy
Focuses on strategic business units. Where the competition takes place, indirect competition with competitors, define the competitive reality with others, they decide the position to adopt to be competitive with others.
Example : Nestlé, Nescafé, Nesquick that all have their own competitors in their own situation even if they come from the same company
- How to compete?
- Innovation;
- appropriate scale;
- Competitors moves
Functional level strategy
operational strategy, about the different functions of a strategy, need to provide guidelines and suppor for business units.
example: HR help the company to work
Strategic business units (SBU)
a part of an organisation for which there is a distinct external market for goods or services that is different from another SBU.
Strategic management
includes understanding the strategic position of an organisation, making strategy choices for the future, and managing strategy in action.
Why do we call it strategic management ? because corporate strategy is only about corporate level of strategic management.
We call it strategic management because the management of the strategy is related to strategy, it is a about the implementation of strategy
Two views on strategy
- Market-based View - Deliberate strategy;
Point A and you can plan a point B, the better you plan, the better you analyse the situation, the better would be your plan.
- Resource-based view - emerging strategy;
Planning makes no sense, an organisation can learn all the time so there is no sense to make plans for the future it is better to learn over time and then decide or adapt.
Which one is better ? both, you can make plan and then adapt your plans regarding the situation.
Why do we keep the first one ? to attract people, you need to tell them a story to make them believe and strategy is about story telling, we need a plan to attract others.
It is also important for you to know initially what you want to reach.
The role of strategy analysis
- Strategy analysis improves decision processes, but doesn’t give clear answers;
- Strategy analysis assists us to identify and understand the main issues;
- Strategy analysis helps us to manage complexity;
- Strategy analysis can enhance flexibility and innovation by supporting learning;
