Module 5-Levels of Strategy-Patima Lagnason
Module 5-Levels of Strategy-Patima Lagnason
Module 5-Levels of Strategy-Patima Lagnason
LEVELS OF STRATEGY
By: Patima L. Lagnason
When we talk about global strategic management we are referring to the manner in which
organizations expand their geographic footprint and move into other markets. It also
encompasses the typical challenges or roadblocks they face, the steps they need to take
and some broad components that need to be a part of any good global strategy.
Good business strategy certification covers such aspects like the need for specific
resources, the level of existing capability, the extent of competition in the market that an
organization is entering and also the kind of strengths it has.
Key components of global strategic market are as follows:
*Competition-The global strategy should always incorporate the presence of competition
and how to manage around that.
*Talent-This covers talent that will be needed for the strategy to be actually implemented
and the plan to source it as well as retain it.
*Pricing-Many organizations underestimate the role of pricing within the overall global
strategy. However, this can become the key differentiator in a price-sensitive market.
*Product-The competitive advantages of the product and its strengths or USP have to be
discussed when the strategy formulation takes place.
*Market Share-This covers the existing and the one that the organization is aiming for,
either in a new year or new market or even in a new product segment.
Example: Imagine that you want to create a standardization strategy for your luxury purse
company. In this case, you would create a strategy to sell essentially the same purses in
every location. This would allow you to keep your products consistent across locations.
Example:
Using the same scenario, imagine that you decided to create an international strategy for
your luxury purse company instead. Your international strategy would still focus on your
home country, but you would do some business overseas. For example, your physical
production would still occur in your home country, but you could export some purses
overseas.
3. Multinational- When you use a multinational strategy, you can cater your products to
each individual local market. You can also have physical business locations and staff
based in various locations. The key benefit of using a multinational strategy is the ability
to cater your business to individual locations.
Example:
Consider that your luxury purse company wanted to create a multinational strategy. In a
multinational strategy, you could create different luxury purses for each location that you
sell in. This would allow you to cater your business to its different markets.Ex
Corporate level strategy can be defined as the long term goals and objectives of the
organization that can create an impact on all the business units operating under
one umbrella organization. If the company is a large group of companies with several
sub-organizations under the mother company, the corporate level strategies is made for
the long-term benefit of all the sub-organization.
Corporate strategy defines the businesses and the market segments that the company
will operate and customers they are targeting to acquire. The corporate-level strategies
are planned by the top-level management in the group of companies. They created
corporate-level strategies that are then passed down to the organizations under the main
umbrella for the purpose of generating their own strategies aligned with the parent
company.
The corporate-level strategy provides a set of strategic alternatives from which the
management of the organization chooses to continue and achieve in long run through the
operations of the companies in several market sectors and possibly in several industries.
1. Stability Strategies-If the firm continues to serve the public in the same product, service,
market and function sectors as defined in business definition
*No Change Strategies
*Pause/Proceed with caution strategies
*Profit Strategies
2. Expansion Strategies
*Concentration
*Integration
*Diversification
*Cooperation
*Internationalization
3. Retrenchment Strategy
*Turnaround
*Divestment
*Liquidation
4. Combination Strategies
*Simultaneous
*Sequential
*Combination of Both
Finance
This includes the steps to manage your business finance—from raising capital and
seeding funds, budgeting, and investing to acquiring assets and evaluating business
net worth, etc.
Example:
Quality: Minimize errors when inputting information and providing them to other
departments
Efficiency: Automate the accounting process
Delivery: Provide real-time access to data
Human resources
These strategies include recruitment, selection, hiring, training, development, team
building, employee engagement and retention.
Quality: Offer monthly training sessions
Efficiency: Minimize the costs of hiring and onboarding
Delivery: Find effective sources to hire and train employees timely to meet business
demands
Production
Production strategies focus on enhancing product quality and reduce production costs
through managing manufacturing and operating system, as well as logistics and
supply.
Example:
Quality: Improve the quality of the production process
Efficiency: Minimize time wasted in inefficient procedures
Delivery: Minimize delays in production
Quality: Find suppliers that provide reliable and high-quality supply
Efficiency: Establish relationships with suppliers and negotiate the best prices
Delivery: Stock enough and avoid redundancy.
Research and development
Research and Development (R&D) strategies cover steps to improve existing products
and develop new ones.
R&D strategies are often related to Cost Leadership and Differentiation strategies. If
your company intends to occupy a certain segment, you must find out the right product
for that segment and how to beat existing competitors, whether with a unique
difference or with a cheaper price.
Example:
Quality: Design products that bring innovative changes to customer experience
Efficiency: Simplify the research & development processes
Delivery: reduce time to market by implementing parallel design techniques