Business policies and Strategies Situation Analysis and strategy Formulation Dr. Jerry L. huxell
Dr. Jerry L. Huxell Business Policies and Strategies Situation Analysis and Strategy Formulation
Situation analysis Process of finding a strategic fit between external opportunities and internal strengths while working around external threats and internal weaknesses Should we invest more in our strengths or in our weaknesses Dr. Jerry L. huxell
Dr. Jerry L. Huxell Situation Analysis • Process of finding a strategic fit between external opportunities and internal strengths while working around external threats and internal weaknesses • Should we invest more in our strengths or in our weaknesses?
Business Strategy Focuses on improving the competitive position of a companys products or services within the specific industry or market segment that the business serves Can be competitive or cooperative Dr. Jerry L. huxell
Dr. Jerry L. Huxell Business Strategy • Focuses on improving the competitive position of a company’s products or services within the specific industry or market segment that the business serves. • Can be competitive or cooperative
Porter's generic Competitive strategies Competitive Advantage Lower Cost Differentiation Cost Leadership Differentiation 巴≥三z Focused Cost Focus Differentiation Dr. Jerry L. huxell
Dr. Jerry L. Huxell Porter’s Generic Competitive Strategies
Cost leadership Low cost producer Broad mass market Efficient-scale facilities Process engineering skills Focus on cost reductions Tight financial controls Sustained capital investments Dr. Jerry L. huxell
Dr. Jerry L. Huxell Cost Leadership • Low cost producer • Broad mass market • Efficient-scale facilities • Process engineering skills • Focus on cost reductions • Tight financial controls • Sustained capital investments