Strategy implementation Flashcards
corporate strategy
Defines the overall and scope of the business to meet stakeholder expectations.
divisional strategy
used by a part of the business to help achieve the overall business strategy. E.g google has nest that builds security cameras
Functional strategy
is used by a part of the business to help it achieve the corporate strategy. A function such human resources develop its own strategy to ensure the overall strategy of the business is achieved.
Tactics
The smaller steps and short term goals that help achieve the strategy of the business.
set out the business strategy
Including the mission and vision of the business. This will include looking at opportunities and threats of market and set realistic goals.
help plan and prepare the resources needed
to deliver the objectives for example financial and staffing needs.
set out clearly defined and measurable targets
for the business to ensure the objectives are met within the time limits stated, if targets not met or overachieved , business will have structure in place to deal with this.
Be reviewed each year
to evaluate performance and respond to changes in market the economy to make sure plan remains realistic and achievable
SWOT ?
a method for analysing business its resources and its environment. Internal strengths weakness external opportunities.
Internal strengths weaknesses examples
Brand image, sales and revenue figures, market share and capacity utilisation.
external opportunities and threats
business should focus on areas such as potential market segments, new legislation, technological changes, economic factors.
Advantages of SWOT
encourages business to develop strategy to convert weaknesses into strengths.
Drawbacks of SWOT
may oversimplify the strengths,weaknesses, opportunities and threats facing the business.
Porters five forces framework
a model for analysing the nature of competition within an industry or market.
Threat of new entrants
potential effects of a new business entering the market, rivalry increases. Can increase barriers to entry.
Bargaining power of suppliers
how much power a supplier has, presuming it sells its product at a higher price if possible
Bargaining power of buyers
the extent to which customers are able to exert pressure and drive down prices.
Volume of orders
competition
Threats of substitute product/services
the effect of any product or service from a different industry that meets same needs as one provided by the business.
Rivalry among existing competitors
intensity of competition in market, this is the central factors in porters five force framework as shapes business approach.
Where rivalry is low
few dominate the market
branding is important to customers.
opportunities market growth available for all.
there is little spare capacity
barriers to entry are high
no direct competition from abroard
where rivalry is high
many competitors of roughly same size
products are relatively undifferentiated
market growth slow
capacity utilisation low
barriers to entry are low
businesses face overseas competition directly.
Benefits
Business understands customers better and anticipate wants and needs
can help a business create a product that meets customer expectations, differs from competitors
allows business to look at possible risks and make sure impact is as positive as possible
corporate plans give businesses confidence in future approach to growth and success.
drawbacks
for corporate plans to be effective they must be effective, forecasts based on must be reliable and accurate
need to monitor closely must be able to change strategy to avoid competitors gaining advantage,
corporate plans often predictions so can offer little award, so time and money invested for nothing potentially.
Matrix- market penetration
Where the business focuses on selling its existing products into existing markets
