Strategy
Strategos- Greek word for the art of the general
Levels of strategy
 Corporate strategy- comprises of
decision that give the organization what
industry it will not in and how it will
allocate specific resources
o It fulfills mission and vision of
the company
o Analyses the whole system on
the basis of participation of the
different units
o The whole corporate strategies
establish the framework by
which all other strategies are
formulated and implemented
 Business strategy- sets of decisions that
provide way on how the organization
competes in the industry it chooses to
be in and eventually sustain
competitive advantages. Also called as
positioning strategies
o It also positions the brand and
enables brand awareness to the
customers it also instills loyalty
on the brand
 Functional strategy- comprises of
decisions in the different functions
organization that supports business
strategy
o These functions include
marketing, production, finance,
research and development and
human resources
o Also called operational
strategies they translate the
strategies in the corporate and
business levels to departmental
and functional units
o They are transformed into
specific processes, human and
other resources
Consideration to be followed in corporate level
strategy
 Scope- it means identifying the over
goals of the corporation and the types
of business in which the companies
should get in
 Access to competition- it means
identifying and defining where the
company should be accessible
 Management of relationships- the
strategies should be shared and
coordinated to all employees
 Management practices- a company
should decide how the employees are
to be governed in the achievement of
corporate activities
Functional strategies in marketing
 Customer analysis- analyze the
personalities, economic status, gender
and other demographic aspects to
come up with strategies
 Selling of product and services- other
task that will help in the selling of the
products. Task like advertising and
promotion, media, brochure etc.
 Products or service planning- predicts
future sales of new products and
services
 Pricing- the capacity of the consumer to
buy government control, price of raw
materials in production of the product
 Distribution- includes location of retail
stores sales territories and channels
 Opportunity analysis- equivalent to
cost benefit analysis
Functions in finance
 Investment decision- also called as
capital budgeting. It involves the
allocation of resources including capital
to projects, products or service assets
 financing decision- examines the finds
the best capital structure for the
organization
 dividend decision- the right period or
time frame by which the organization
will issue a percentage of income to
stockholders through dividends
Functions in production
 process- it includes various activities
such as the use of facilities production
flow analysis and physical distribution
system
 capacity- concerns with the
determination of optimal output levels
for the firm without going over and
under the production
 inventory- need to manage the level or
raw materials work in process and
finished goods inventory
Implementing strategies and ecommerce
 e-commerce
 internet- ease for the customer to
compare prices
 product bunch- gives the buyer the
chance not to compare prices
individually but on the whole package
 production of niche products- through
direct access available in the internet
companies can target consumers and
this introduces products and services
that will cater to their needs
 Customer centered strategy- enable
the company to pull out information
from consumers to improve the
company’s performance
 Expansion into related related product
lines- helps companies to share
activities such as promotion and
distribution
 price lining- refers to the practice of
offering on the same products at price
points depending on the consumer
needs
 smart pricing- refers to the practice of
charging various prices from one
market to another depending on the
conditions