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Business Level strategy /Competitive strategy

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Presentation on theme: "Business Level strategy /Competitive strategy"— Presentation transcript:

1 Business Level strategy /Competitive strategy
Competitive Strategy is defined as the long term plan of a particular company in order to gain competitive advantage over its competitors in the industry. It is aimed at creating defensive position in an industry and generating a superior ROI (Return on Investment).

2 Business Level Strategy
How do we support the corporate strategy? How do we compete in a specific business arena? Three types of business level strategies: Low cost producer Differentiator Focus Four areas of focus Generate sustainable competitive advantages Develop and nurture (potentially) valuable capabilities Respond to environmental changes Approval of functional level strategies

3 Competitive Strategies

4 Functional / Operational Level Strategy
An example. Business L.S.: Become the low cost producer of widgets Functional L.S. (Mfg.): Reduce manufacturing costs by 10% Operational (Plant #1): Increase worker productivity by 15% Functional: How do we support the business level strategy? Operational: How do we support the functional level strategy?

5 A Simple Organization Chart (Single Product Business)
Level Strategy Business Research and Development Human Resources Manufacturing Marketing Finance Functional Level Strategy

6 A Simple Organization Chart (Dominant or Related Product Business)
Corporate Level Multi business Corporation Business 1 (Related) Business 2 Business 3 Business Level Research and Development Manufacturing Marketing Human Resources Finance Functional Level

7 (Multi-business) Corporation Strategic Business Unit 1
An example of an Unrelated Product Business (Note: By itself, an SBU can be considered a related product business) SBU: a single business or collection of related businesses that is independent and formulates its own strategy A (Multi-business) Corporation Ex.: G.E. (General Electric Corp.) Strategic Business Unit 1 S.B.U. 2 Company 1 Co. 2 Co. 3 Division 1 Div. 2 Div. 3

8 An emergent view Emphasize the uncertainty of the future and suggest that setting out identify purpose and a single strategy and then develop a complete strategic plan may be fruitless task

9 What is emergent perspective to strategy
A set of certain consistent actions that form an unintended pattern that was not initially anticipated or intended in the initial planning phase. For example, although unintended, adopting an emergent strategy might help a business adapt more flexibly to the practicalities of changing market conditions. Strategy More planned approached/ Intended strategy Emerged outside the formal plan /Unintended pattern recognizing the changing conditions

10 Henry Mintzberg's emergent strategy

11 Intended strategy through Deliberate planning process
Strategic drift Strategic happens when organization strategy is no longer relevant to the external environment facing it Environment forces ????? Intended strategy through Deliberate planning process Strategic drift

12 Rate of responding to the environmental change

13 What if you don’t redefine your business purpose –Strategic drift

14

15 Slow response to the market led to strategic drift

16 Anglia Ruskin University - External Examiner Induction
CASE STUDY 01- Ceylinco General Insurance Most admired motor insurance brand Brand Finance Ranking 2018 Most Innovative Motor Insurance solution- 2006 Conventional claim settlement process- CSLT I MONTH CONSUMER INSIGHTS Life style changes of the target consumer Brand proposition Hazel free Motor Insurance solution BRAND IMPACT 48% Market Share CUSTOMER PAIN POINTS 18th May 2007

17 Anglia Ruskin University - External Examiner Induction
CASE STUDY 02- “Redefining one day cricket” Traditional ONE day cricket 8 hours, 100 overs Consumer Insight Redefine as a game of entertainment Brand proposition 20 /20 cricket International cricketers represent teams Bollywood stars as brand icons Cheer girls Currently 325 higher education institutions (HEIs) with 53,500 courses within UCAS offering full-time undergraduate courses at UK universities and colleges. Nearly 20% of HE is done at FE Colleges. There are over 500 of these. Great deal of information on the internet and in guidebooks: The Virgin 2005 Alternative Guide to British Universities Push Online Guardian The Times Brand Impact –IPL Brand value USD 5.3 billon 18th May 2007

18 Anglia Ruskin University - External Examiner Induction
CASE STUDY 03- Redefining traditional taxi service Traditional taxi service was not changed in last 45 years Consumer Insight Convenience taxi service Brand proposition Mobile taxi App What is next??? 18th May 2007

19 Question 01 – March 2017 Perspective and emergent strategy can be contrasted by adapting Mintzberg”s analogy. Explain the perspective approach to strategy formulation vs emergent approach to strategy formulation. What is the applicability of perspective rational approach over emergent view? Examine the applicability of the emergent approach to strategy formulation in today business context. ( 10 marks) Organization growth can be accelerated either organically or inorganically way. Explain the organization strategic directions as discussed by Igo Ansoff (1965) and expansion policy matrix. (10 Marks)


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