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Strategy speaks to the reasons why, while the plan is focused on how, when and
where etc
Strategic planning is the determination of the basic long term goals and objectives
in an organization and adoption of courses of action and allocation of resources
necessary for carrying out these goals more efficiently than others in the same
business do.
Levels of Strategic Planning
Functional or Operational
Level e.g. Supervisors, HR Marketing
Department incharge
Levels of Strategic Planning (contd..)
Strategy Involved :
Stability strategy: No change
Diversification: Acquiring a business other than that of its current product/services e.g
Chaudhary Group is bringing out CG Telecom in near future.
Expansion/Growth Strategy: Sales revenue, profit or total assets or geographical
Retrenchment: Divestment of SBU, liquidation(close the business by selling assets)
Strategy Involved :
Cost Leadership: Cut cost through production overhead minimization, choosing the
right suppliers that offer the most competitive prices
For e.g., Dell does not invest heavily in R&D to produce leading-edge computers. Rather, it
sells good machines at a discounted price.
Business Level Strategy (contd..)
For e.g. Rolex watch is differentiated from a Timex watch by superior design,
functions, features, and reliability
A Toyota car is differentiated from a General Motors car by superior reliability (new
Toyota cars have fewer defects than new GM cars);
Strategy Involved:
HR strategy, Marketing Strategy, Production Strategy based on the department dealt
with