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SM 12

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Sarath Bhushan Kaluturi
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40 views10 pages

SM 12

Uploaded by

Sarath Bhushan Kaluturi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Strategic Management

Class12
Levels of Strategy
Strategy is not the task of Top Executives
Contribution of everybody is necessary
In a large organisation 4 levels and small 3
levels
Understanding and participation are
important for acheiving of strategy by all
levels
Levels of Strategy
Levels of Strategy
Corp
orate
Level
-
CEO
Division level
Vice President
Functional Level Mktg, Finance,
Hr, R&D
Operational level Plant Managers, Sales
Mgrs, Dept Mgrs
Large organization
Varying Performance Mesures by
Organisational level
Corpor
ate
Level -
CEO
Division level Vice
President
Functional Level Mktg, Finance, Hr, R&D
Large organization
75% based on long-term objectives
25% based on annual objectives
50% based on long-term objectives
50% based on annual objectives
25% based on long-term objectives
75% based on annual objectives
Types of Strategies
There are 11 different strategies that a
firm can pursue.

Organizations can pursue combination
strategies

They cannot be carried too long
Alternative Strategies
Strategy Definition Example
Forward Integration
Gaining ownership or
increased control over
distributors or retailers
Alternative Strategies
Strategy Definition Example
Backward
Integration
seeking ownership or
increased control over
suppliers
APPM Ltd and Tree growers
Alternative Strategies
Strategy Definition Example
Horizontal
Integration
seeking ownership or
increased control over
Competitors
1. The formation of Brook Bond Lipton India Ltd. through the merger of Lipton India
and Brook Bond
2. The merger of Bank of Mathura with ICICI (Industrial Credit and Investment
Corporation of India) Bank
3. The merger of BSES (Bombay Suburban Electric Supply) Ltd. with Orissa Power
Supply Company
4. The merger of ACC (erstwhile Associated Cement Companies Ltd.) with
Damodar Cement
Alternative Strategies
Strategy Definition Example
Market Penetration
Seeking increased market
share for present products
or services in present
markets through greater
marketing efforts
1. BSNL trying for market penetration through 3G services and a varied number of
options to the existing customers
2. Face book with ??
Alternative Strategies
Strategy Definition Example
Market Development
Introducing present
products or services into
new geographical areas
1. BSNL trying for market penetration through 3G services and a varied number of
options to the existing customers

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