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How and why the choice of current strategy likely to be influenced by the past strategy?
"Strategy is the direction and scopeof an organisation over the long-term: which achieves advantage for the organisation through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfil stakeholderexpectations".
In other words, strategy is about:* Where is the business trying to get to in the long-term (direction)
* Which markets should a business compete in and what kind of activities are involved in such markets? (markets; scope)
* How can the business perform better than the competition in those markets? (advantage)?
* What resources (skills, assets, finance, relationships, technical competence, facilities) are required in order to be able to compete? (resources)?
* What external, environmental factors affect the businesses' ability to compete? (environment)?
* What are the values and expectations of those who have power in and around the business? (stakeholders)
Strategy at Different Levels of a Business
Strategies exist at several levels in any organisation - ranging from the overall business (or group of businesses) through to individuals working in it.
Corporate Strategy - is concerned with the overall purpose and scope of the business to meet stakeholder expectations. This is a crucial level since it is heavily influenced by investors in the business and acts to guide strategic decision-making throughout the business. Corporate strategy is often stated explicitly in a "mission statement".
Business Unit Strategy - is concerned more with how a business competes successfully in a particular market. It concerns strategic decisions about choice of products, meeting needs of customers, gaining advantage over competitors, exploiting or creating new opportunities etc.
Operational Strategy - is concerned with how each part of the business is organised to deliver the corporate and business-unit level strategic direction. Operational strategy therefore focuses on issues of resources, processes, people etc.
How Strategy is Managed - Strategic Management
In its broadest sense, strategic management is about taking "strategic decisions" - decisions that answer the questions above.
In practice, a thorough strategic management process has three main components, shown in the figure below:
Strategic Analysis
This is all about the analysing the strength of businesses' position and understanding the important external factors that may influence that position. The process of Strategic Analysis can be assisted by a number of tools, including:PEST Analysis - a technique for understanding the "environment" in which a business operates
Scenario Planning - a technique that builds various plausible views of possible futures for a business
Five Forces Analysis - a technique for identifying the forces which affect the level of competition in an industry
Market Segmentation - a technique which seeks to identify similarities and differences between groups of customers or users
Directional Policy Matrix - a technique which summarises the competitive strength of a businesses operations in specific markets
Competitor Analysis - a wide range of techniques and analysis that seeks to summarise a businesses' overall competitive position
Critical Success Factor Analysis - a technique to identify those areas in which a business must outperform the competition in order to succeed
SWOT Analysis - a useful summary technique for summarising the key issues arising from an assessment of a businesses "internal" position and "external" environmental influences.
Strategic Choice
This process involves understanding the nature of stakeholder expectations (the "ground rules"), identifying strategic options, and then evaluating and selecting strategic options.
Strategy Implementation
Often the hardest part. When a strategy has been analysed and selected, the task is then to translate it into organisational action.
Sujeet - PTU
What else can I help you with?
Should Sony use prototype stores or should it use rationalized retailing?
Either strategy is a good way for a business to go about improving itself. Rationalizing retailing is likely going to be a better way to go.
What is diversified strategy for advertisement?
"Diversified" means different or varied. A "diversified strategy" for advertisement would refer to using lots of different kinds or means of advertising with the hope of reaching many different audiences of potential customers. Most businesses involved in developing advertising strategy for a product or service start by identifying a target population - the age group, interest group, economic or social class they feel are the most likely consumers for whatever they are hoping to sell. Once that audience is determined, a diversified strategy is developed to coordinate delivering advertising about the product or service in many different ways to provide multiple exposures to the potential audience. The company may purchase advertising time on television channels during the time of shows that their audience is likely to watch; create ads to appear on computers of websites likely to be used; send direct mail advertisements to specific addresses or blanket (send to every address) an area; or purchase billboard advertising along roads or on vehicles such as buses. All these ideas and more are possible ways of exposing potential customers to the product or service being advertised.
What are the factors that shape a companys strategy?
The Factors That Shape StrategyOrganizations do not exist in a vacuum. Many factors enter into the forming of a company's strategy. Each exists within a complex network of environmental forces.These forces, conditions, situations, events, and relationships over which the organization has little control are referred to collectively as the organization's environment.In general terms, environment can be broken down into three areas:the macroenvironment, or general environment (remote environment) - that is, economic, social, political and legal systems in the country;operating environment - that is, competitors, markets, customers, regulatory agencies, and stakeholders; andthe internal environment - that is, employees, managers, union, and board directors.In formulating a strategy, the strategic decision makers must analyze conditions internal to the organization as well as conditions in the external environment, which are described in the following sections.FACTORS SHAPING THE CHOICE OF STRATEGYCompetitive Conditions and Overall Industry AttractivenessAn industry's competitive conditions and overall attractiveness are big strategy-determining factors. A company's strategy has to be tailored to the nature and mix of competitive factors in play : price, product quality, performance features, service, warranties, and so on. When competitive conditions intensify significantly, a company must respond with strategic actions to protect its position.The Company's Market Opportunities and External ThreatsThe particular business opportunities open to a company and the threatening external developments that it faces are key influences on strategy. Both point to the need for strategic action. A company's strategy needs to be deliberately aimed at capturing its best growth opportunities, especially the ones that hold the most promise for building sustainable competitive advantage and enhancing profitability. Likewise, strategy should provide a defense against external threats to the company's well-being and future performance.Company Resource Strengths, Competencies, and Competitive CapabilitiesOne of the most pivotal strategy-shaping internal considerations is whether a company has or can acquire the resources, competencies, and capabilities needed to execute a strategy proficiently. These are the factors that can enable an enterprise to capitalize on a particular opportunity, give the firm a competitive edge in the marketplace, and become a cornerstone of the enterprise's strategy.The Personal Ambitions, Business Philosophies, and Ethical Beliefs of ManagersManagers do not dispassionately assess what strategic course to steer. Their choices are typically influenced by their own vision of how to compete and how to position the enterprise and by what image and standing they want the company to have. Both casual observation and formal studies indicate that managers' ambitions, values, business philosophies, attitudes toward risk, and ethical beliefs have important influences on strategy.The Influence of Shared Values and Company Culture on StrategyAn organization's policies, practices, traditions, philosophical beliefs, and ways of doing things combine to create a distinctive culture. Typically, the stronger a company's culture, the more that culture is likely to shape the company's strategic actions, sometimes even dominating the choice of strategic moves. This is because culture-related values and beliefs are so embedded in management's strategic thinking and actions that they condition how the enterprise does business and responds to external events.
What strategy company like Petco pursuing by entering pet hotel market?
If a company like Petco were or enter into the market if pet hotels, they would most likely hold a monopoly over other establishments. They are a well known pet brand & pet owners are familiar with their stores & products.
Who are primary customer?
They are the ones whom the company is targeting. They are the ones who are most likely to use the products/services. Every firm has its strategy towards identifying a specific group of the market based on any style of segmentation. For Example for Johnson's and Johnson's mothers are the primary customer but this case is a bit different as they are only the buyers not the users.
Are trouts attracted to light?
Trouts are not typically attracted to light. They are more likely to be influenced by factors such as water temperature, current, and prey availability when seeking out habitats to feed in.
Walmarts political marketing strategy?
Strategy is the single most important factor in a political campaign. The right strategy can survive a mediocre campaign, but even a brilliant campaign is likely to fail if the strategy is wrong.
What civilizations were likely influenced by each other?
Who cares
What would be the most likely geological feature that influenced the drawing of the proclamation of 1763?
The most likely geological feature that influenced the drawing of the proclamation of 1763 would be the Appalachian Mountains.
How do you spell inflinced?
The likely word is "influenced" (affected, impacted).
Who is most likely to win a card game?
The player with the best strategy and luck is most likely to win a card game.
Who is most likely to win in a card game?
In a card game, the player with the best strategy and luck is most likely to win.
When you hear your stomach grumble it is most likely influenced by what hormone?
Ghrelin.
What of these cultures was most likely influenced by the Anasazi civilization?
APEX: Hopi
What culture was most likely influenced by the anasazi civilization?
APEX: Hopi
Will there be a 2011 kids choice awards?
Most likely.
Who believe in equal pay for women and fight for programs that benefit children and families would most likely be influenced?
Influenced by (gender).
