Strategic Management Terms

Difference Between Business Strategy and Corporate Strategy

Business Level Strategy

Business level strategy concentrates on developing a firm specific model that will allow the firm to gain competitive advantage over its rivals in the industry such as in which it operates. Business strategy would focus on improving its competitive position of a company’s or business unit’s products within the specific industry or market segment that the company and/ or its business units serve. The question explored in business level strategy is: How a company can best be competed in the industry that they are in?

For an example Honda motors, Japan has a domestic market for its products and also it operates internationally.… Read the rest

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Strategic Management Process – Stages of the Strategic Management Process

The strategic management process aims at delineating the organization’s strategy. It is defined as the process by which managers make a choice of a set of strategies for the organization to achieve efficient functioning and higher accomplishments. It is a continuous process that appraises the business and industries where organization is involved, evaluates its competitors, defines targets to meet all the present and future challenges and finally assesses each strategy periodically. Strategic management is a particular course of action that is meant to achieve a corporate goal. By and large, the owners, founders of the company take the first step of the process.… Read the rest

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Process Reengineering – History, Definition and Process Steps

The driving force behind all the changes which are taking place in the all the firm of the world are two Cs: customers, competition. The demands of the customers are changing day by day and this change in demand of customers pose new sets of challenges to the firms every now and then and hence firms have to change or modify their offering to customers accordingly. Firms who are able to do it in less time and less cost turn out to be the industry leaders.

Firms set their mission and vision statements on the basis of their short term and long term strategy and to attain those goals firms need to adjust themselves with the constantly changing environment.… Read the rest

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Process Benchmarking – Definition and Steps Involved

Benchmarking involves comparison of one firm’s processes with that of other firm while reengineering is concerned with redesign of operational processes. Benchmarking involves thorough research into the best practices followed by other organisations in the industry where the company operates and it helps in breaking down the organisations’ activities down to process operations and modifies them to the best-in-class for a particular operation.

The word benchmarking has been derived from the set of activities used by cobblers to mark the size of the foot of their customers. For measuring the size of the foot they used to ask the customer to put their foot on the “bench” so that they can “mark” the foot using a pen.… Read the rest

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Learning Organization – Characteristics, Benefits and Limitations

The phenomenon of globalization has turned the business world into a global dynamic village for business exchanges. Indeed, competition is becoming increasingly fiercer and simultaneously using Learning Organization as a strategy has become a MUST for companies’ success and development. Adopting such strategy helps organizations to innovate and acquire knowledge in order to survive and thrive in the current rapid changing environment.

Some key definitions by distinguished writers on Learning Organization are as follows:

  • “The essence of organizational learning is the organisation’s ability to use the amazing mental capacity of all its members to create the kind of processes that will improve its own”- Nancy Dixon
  • “A Learning Organization is one that consciously manages its learning processes through an inquiry-driven orientation among all its members”- Kim D.
… Read the rest
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Strategic Lenses

Organisations strategic issues are commonly analysed from different strategy lenses. Strategic lenses are a concept of strategic management. The lenses are different ways of viewing strategy development. It examines the flow of tasks and information, or how you get things done. Each lens reveals many different traits and qualities. Using the strategic lens, one looks to optimize workflow to meet the goals and objectives of the company. This article  a  will cover four angles from which strategy can be viewed and implemented on a corporate level; they are strategy as design, strategy as experience, strategy as ideas and strategy as discourse.… Read the rest

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