strategic management in different business context
TRANSCRIPT
Strategic Management inDifferent Business Context
PRESENTED BY: Narendra kumar2014MCOM009
Strategic Management
• Strategy and strategic management varies in different business contexts.– The small business context– The multinational context– The manufacturing and service organization context– Strategy in public sector– Strategy in Voluntary and not-for-profit sectors.
Strategy: Small Business Context
NAREN
Strategy: Small Business Context• Scope of operations are lessstrategic and more planningbased.• Unless the firm is a specialist inthe field, it would be under heavymarket pressures.• Arranging resources & developingcompetences may be a bigproblem.• Firm may not have a separatestrategy team.• Owner is the most importantstakeholder.
Direction & Scope
Long Term Perspective
Advantage for Organization
Resources & Competences
Environment
Needs of Market
Stakeholder’s Expectations
Strategy: Multinational Contexto CORPORATE LEVEL BUSINESS LEVEL
Strategy: Multinational Context• Products and markets arediverse.• The key strategic issuesinclude:– Aspects of structure andcontrol at the corporate level ,– the relationships at thevarious business units level,– Allocation of resources amongthe business units, and– Coordination of operationallogistics across business unitsand geographies.
Direction & Scope
Long Term
Advantage for Organization
Resources & Competences
Environment
Needs of Market
Stakeholder’s Expectations
Service and Manufacturing
Direction & Scope
Long Term
Advantage for Organization
Resources & Competences
Environment
Needs of Market
Stakeholder’s Expectations
• Competitive advantage inservice organizations ismuch more related to theextent to which customersvalue less tangible features
• For manufacturingorganizations, the physicalproducts is the central tocompetitive strategy andservices are merely neededto support the product.
Strategy: Public Sector Context
Direction & Scope
Long Term
Advantage for Organization
Resources & Competences
Environment
Needs of Market
Stakeholder’s Expectations
• The most powerful stakeholder inthe case of public sector is thegovernment.• Scope and direction is determinedby political rather than marketconditions.• The competition is mainly for theinput of resources rather thantowards the market andcustomers.• Social issues and concerns aremore important environmentalfactors rather than business sense.
Strategy: Not-for-Profit Sector
Strategy: Not-for-Profit Sector
The values and ideologies are central to strategy development.There exists multiple source of income and revenue.They are more susceptible to lobbying and other political influences.
Direction & Scope
Long Term
Advantage for Organization
Resources & Competences
Environment
Needs of Market
Stakeholder’s Expectations
