Principle of management
- 1. Sonargaon University Course Name: Principles Of Management Course Code: MGT 223
- 2. Topic Name: Managing Strategy and Strategy Planning Presented By: Lighting Sunshine Tabassum Islam Anika BBA2102023073 Fazlul Karim BBA210202360 FARIHA ZAMAN TANHA BBA2102023027
- 3. Strategy : -A comprehensive plan for accomplishing an organization’s goal. Strategic Management : -Strategic management is the process of setting goals, procedures, and objectives in order to make a company or organization more competitive and a way of approaching business opportunities and challenges. Effective Strategy : -Strategic effectiveness is an organization's ability to set the right goals and consistently achieve them. The Nature Of Strategic Management
- 4. Strategy Distinctive Competence: An Organizational strength possessed by only a small number of competing firms. Scope: The scope of a strategy specifies the range of markets in which an organization will compete. Resource Deployment: The primary goal of a well-structured resource deployment process is to optimize the utilization of resources across the organization. Distinctive competence Scope Resource Deployment
- 5. Business Level Strategy: Business level strategy is the strategic planning and implementation activities that occur to set and steer the direction of an individual business unit. These activities will generally include gaining a competitive advantage and creating customer value in the business unit’s specific market. Corporate Level Strategy: A corporate-level strategy is a multi- level plan used by the leaders of companies and organizations to define, outline, and reach their business direction and objectives. Types Of Strategic Alternatives Business level strategies Corporate Level Strategies
- 6. Strategy Formulation and Implementation Strategy Formulation: Strategy Formulation is an analytical process of selecting the best suitable course of action to meet the organizational objectives and vision. Strategy Implementation: Strategy implementation is the process of turning plans into action to reach the desired outcome. Deliberate Strategy: Deliberate strategy is one that arises from conscious, thoughtful, and organized action on the part of a business and its leadership. It helps to implement specific goals. Emergent Strategy: An emergent strategy is one that arises from unplanned actions and initiatives within an organization.
- 7. Using SWOT Analysis to Formula Strategy S-Strengths W-Weakness O-Opportunities T- Threats An organization’s fundamental purpose or mission: SWOT Analysis External Analysis Opportunities Internal Analysis Strengths Avoid weakness Neutralize its threats
- 8. Evaluating an Organization’s Strengths: A skill or capability that enables an organization to conceive of and implement its strategies. Common Strengths: A skill or capability held by numerous competing firms. Strategic Imitation: The practice of duplicating another organization’s distinctive competence and thereby implementing a valuable strategy. Sustained competitive advantages: A competitive advantage that exists after all attempts of imitation have creased.
- 9. Evaluating An Organization's weakness Weaknesses stop an organization from performing at its optimum level. They are areas where the business needs to improve to remain competitive: a weak brand, higher-than-average turnover, high levels of debt, an inadequate supply chain, or lack of capital. Evaluating An Organization’s opportunities An area in the environment that is exploited and May generate higher performance. Evaluating An Organizations threats An area in the environment that increase the difficulty Of an organization achieving higher performance.
- 10. Identify and describe various alternative approaches to corporate-level strategy formulation. What is Strategy? A strategy refers to an organization's long-term goals and how it plans to reach them. Let's review the different types of corporate-level strategies that we can employ: Diversification Diversification is when you notice that you need to change the market you're operating in. Moving into new markets allows you to create new business opportunities with clients. It can give you the chance to build a long-lasting relationship linked to the execution and satisfaction of the products and services you render. If you have enough capital, you can try rebranding on shifting your services to a new target audience eager to try a new product.
- 11. Forward or backward integration Forward integration is when you take the position of a company that served a previous role in your supply chain. And Backward integration means that you start in the supply chain business and you move to be a supplier of goods and services. You may have to produce more products to adapt to the change in your business. Horizontal integration Horizontal integration happens when a business merges with another in the same vertical. If you merge with another company, you'll need to make sure you have the operational capacity to handle the merger and work with new employees eager to learn your process and how they differ from the company you acquired. Profit This strategy is only dedicated to having more capital to spend once you take out your expenses. You may need to reduce costs or expenses, selling investments like stocks and bonds, increase the price of services you sell to your customer based and cutting back on non-essential services. Turnaround Turnaround refers to increasing the effectiveness of existing products, so you can sell more more of them. This may require you to boost your testing processes.
- 12. Liquidation Liquidation is the final option you can take if you own a company. You'll make this move after you exhausted all options to increase the profits of your business. Concentration Concentration is an expansion strategy approach that adds more market shares to the industry you're operating in. It's viewed as a high-reward strategy because of the market demand for the industry you're getting involved in. Investigation The investigation is the process of testing expansion. You'll know which strategy to move forward with after you decide to prioritize your performance or readjust the scope of your business. No change Lastly, no change is often correlated with your stability strategy. It's important to highlight where you need to upgrade your product to ensure usage and brand loyalty from consumers.
- 13. Implementing Corporate-Level Strategies • Corporate-level strategy focuses on how organizations manage their operations across multiple business and markets. The most important corporate strategy decisions that organizations need to make concerns the type and degree of corporate diversification. • There are various ways that a firm can implement their corporate diversification strategy. These are: 1. Internal development: Internal development means the company develops and launches the new business themselves. To do this, the firm should have a strong entrepreneurial orientation, as this implementation method is the same process as starting a new business. A firm may select this method if they have sufficient resources and capabilities within the firm or can hire the expertise and knowledge to develop this new business unit and achieve the marketing and sales required to be successful.
- 14. 2. Strategic Alliance: Strategic Alliance A firm might implement their corporate strategy by working with another firm, even if that firm is a competitor. A strategic alliance is a mutually beneficial relationship between two organizations. 3. Strategic Alliance: Joint Venture Similar to a strategic alliance, two or more companies form a joint venture when they “birth” a third company, and the joint venture partners are shared owners of the new firm. With a joint venture, a new company is 4. Mergers and Acquisitions: Mergers and Acquisitions A common method for firms to diversify is through mergers and acquisitions. A merger is between two companies of similar size and are less common. Acquisitions occur when one company buys another. Typically, a larger company acquires a smaller one. Mergers and acquisitions (M & A) may occur between competitors, which reduces the competition in the market.
- 15. INTERNATIONAL & GLOBAL STRATEGIES Developing international & global strategy. Strategic alternatives for international business. Global strategy : the 3rd alternative philosophy available for internal firms. Transnational strategy : the transnational corporation attempts to combine the benefits of global scale efficiencies ,such as those pursued by global corporation . International strategy: A firm using a transnational strategy seeks a middle ground between a multi-domestic strategy and a global strategy Global efficiencies: they can capture location efficiencies by locating their facilities. Worldwide learning: these operating environment may also contribute to organization learning.
- 16. FORMULATING BUSINESS-LEVEL STRATEGIES A of frameworks have been developed for identifying the major strategic alternatives that organizations should consider when choosing their business – level strategies . MICHEAL PORTER Cost leadership strategy Differentiation strategy Focused strategy 10/3/2022 16
- 17. Cost leadership strategy Attempts to gain a competitive advantage by reducing its costs of competing firms. By keeping- costs low. The organization sells low prices and profit 10/3/2022 17
- 18. Focus strategy A strategy in which an organization concentrates on a specific regional market ,product line .or group of buyers 18 10/3/2022
- 19. Differentiation 19 A company may use creative advertising, distinctive product features, higher quality, better performance, exceptional service or new technology to achieve a product being perceived as unique differentiation strategy therefore rely largely on customer loyalty. 10/3/2022
- 20. Implement business-level strategies Differentiation and cost leadership can each be implemented thought basic organizations function . 1.Differentitsion strategy 2.Overall cost leadership strategy 10/3/2022 20
- 21. Implementation miles and snow’s strategy No organization would purposefully choose to implement a reactor strategy . Prospector strategy Defender strategy Analyzer strategy 10/3/2022 21
- 22. So, That’s all of our presentation. Thanks for your kind patience. If you have any questions please, free to ask me. Thank you all, Thank you once again.