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    Jaj Sratg

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    Chintan Patel
    The document discusses different types of business strategies including functional strategy, business strategy, and corporate strategy. Functional strategy focuses on improving operational efficiency through strategies like marketing, HR, production, and R&D. Business strategy aims to gain competitive advantage over competitors through approaches such as cost leadership, differentiation, and market penetration. Corporate strategy focuses on long-term organizational development over 10 years through internal development, takeovers, and strategic alliances.

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    Jaj Sratg

    Uploaded by

    Chintan Patel
    46 views12 pages
    The document discusses different types of business strategies including functional strategy, business strategy, and corporate strategy. Functional strategy focuses on improving operational efficiency through strategies like marketing, HR, production, and R&D. Business strategy aims to gain competitive advantage over competitors through approaches such as cost leadership, differentiation, and market penetration. Corporate strategy focuses on long-term organizational development over 10 years through internal development, takeovers, and strategic alliances.

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    The document discusses different types of business strategies including functional strategy, business strategy, and corporate strategy. Functional strategy focuses on improving operational efficiency through strategies like marketing, HR, production, and R&D. Business strategy aims to gain competitive advantage over competitors through approaches such as cost leadership, differentiation, and market penetration. Corporate strategy focuses on long-term organizational development over 10 years through internal development, takeovers, and strategic alliances.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    46 views12 pages

    Jaj Sratg

    Uploaded by

    Chintan Patel
    The document discusses different types of business strategies including functional strategy, business strategy, and corporate strategy. Functional strategy focuses on improving operational efficiency through strategies like marketing, HR, production, and R&D. Business strategy aims to gain competitive advantage over competitors through approaches such as cost leadership, differentiation, and market penetration. Corporate strategy focuses on long-term organizational development over 10 years through internal development, takeovers, and strategic alliances.

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    Business strategy

    Strategy formerly refers to planning and managing an operation for a


    particular purpose such as in a war.
    A businesss strategy is the pattern of decisions and actions that are
    taken by the business to achieve its goals.
    A business may have a variety of goals or objectives, but for many
    businesses, the major goal is to improve performance so that
    profits increase through designing and implementing strategies.

    Types of strategy
    1.Functional strategy

    Strategies of the functional level developed to improve the


    efficiency of a business operations. It is also called operational strategy.
    Ex.
    Marketing strategy
    HR strategy
    Production strategy
    R&D strategy

    2. Business strategy

    Plans a company uses to gain competitive advantage over


    competitors in a market. It is unlikely that a company can serve an
    entire market all the time. Therefore a company must decide which
    parts of the market to aim at and how to be different from
    competitors.
    Ex.
    Cost leadership strategy
    Differentiation strategy
    Focus strategy
    Withdrawal strategy
    Market penetration strategy
    New product development strategy

    3.Corporate strategy

    Strategies aimed at the long-term development of the organization.


    For example, a company may consider where it will be in 10 years
    time and how it manages to get there.

    Ex.

    Internal development strategy


    Takeover and merger strategy
    Strategic alliances

    3. Forward Integration
    Gaining ownership or increased control over distributors or
    retailers

    Example
    General Motors is acquiring 10% of its dealers.

    4. Backward Integration
    Seeking ownership or increased control of a firms suppliers

    Example
    Motel 8 acquired a furniture manufacturer.

    5.Horizontal Integration
    Seeking ownership or increased control over competitors

    Example

    Palestinian Islamic Bank acquired Cairo-Amman Bank Islamic


    transaction branch.

    6. Market Penetration
    Seeking increased market share for present products or services in
    present markets through greater marketing efforts

    Example
    Ameritrade, the on-line broker, tripled its annual advertising
    expenditures to $200 million to convince people they can make
    their own investment decisions.

    7. Market Development

    Introducing present products or services into new geographic area

    Example

    Khuzendar Tiles maker introduce his product to Gulf markets.

    8.Product Development

    Seeking increased sales by improving present products or services


    or developing new ones

    Example
    Apple developed the G4 chip that runs at 500 megahertz.
    Khuzendar Tiles maker introduce Ceramic as a new product.

    9.Concentric Diversification

    Adding new, but related, products or services

    Example
    National Westminister Bank PLC in Britain bought the leading
    British insurance company, Legal & General Group PLC.

    10.Conglomerate Diversification

    Adding new, unrelated products or services

    Example
    Consultant Construction Engineering acquired Bisects factory.

    11. Horizontal Diversification

    Adding new, unrelated products or services for present customers

    Example
    The El-Awda Co. provide ice-cream product to present customer

    12.Joint Venture
    Two or more sponsoring firms forming a separate organization for
    cooperative purposes

    Example
    Lucent Technologies and Philips Electronic NV formed Philips
    Consumer Communications to make and sell telephones.

    13. Retrenchment

    Regrouping through cost and asset reduction to reverse declining


    sales and profit. Sometimes it is called turnaround or
    reorganizational strategy.

    Example
    A company sold off a land and 4 apartments to raise cash needed.
    It introduce expense effective control system.

    14. Competitive Strategy --------------- Low cost


    Differentiation
    Direct competition
    Focus on niche
    15.Functional/operational Strategies:
    Concern with org. internal resources and processes which
    effectively deliver the corporate and business strategic direction.

    Functional strategies are interrelated.


    e.g.: purchasing & materials management, production, finance,
    R&D, HR, IT, and marketing.

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