Strategic Management- Corporate Level Strategy

Strategic Management- (corporate level strategies)

Corporate level strategies attempts to identify strategies that corporations or organizations decide to pursue for the benefit of the whole organizations.

The various corporate level strategies will be discussed under the following headings:

    1) Grand strategies

         a. growth: next year growth rate is higher than the previous year

         b. stable growth: next year growth rate is the same as the previous year

         c. turnaround: the growth rate is positive as compared to the previous year

         d. combination: organization adopt a few strategies combining some of the three     strategies mentioned above; growth, stable growth and turnaround. 

   2) Secondary level strategies

           a. expand: to increase activities so that the volume of the output is increased in  terms of numbers, weight, size, branches, etc.

           b. integrate: to have more control of the production or services such as through  the control of resources (backward) or the added value of down the line activities as in warehousing, wholesaling and retailing (forward).

           c. diversity: is basically the increase in the number of outputs produced or services rendered.

           d. reduce : that are grouped together as they all represent actions that are commonly used in corporations facing some difficulties on their operations as reflected in their negative performance indicators.   

      3) Tactical level strategies

           a. Organically: to describe tactical strategy where a company would do it through its own strengths and capabilities without the involvement of any other company with similar interest.

           b. Joint venture: A joint venture tactical strategy involves a setting up of a new company with equity participation of all the parties involved (can be more than two)

           c. Merger: a merger will result in the establishment of a new company while the two or more names of those involved in the merger will not exist anymore.

           d. Acquisition/ Takeover: An acquisition and a takeover are almost similar as it involves the buying of the majority equity of the company.

           e. Reverse takeover: A reverse takeover involves a listed company. The company that wants to do a reverse takeover is interested to be listed in the stock market.

           f. Strategic Alliances: just alliances or understanding between two or more parties that describe to work together to achieve their respective objectives without any structural changes.

           g. Licensing/ Franchising: to seek permission to run a business based on that of the licensor. the permission once obtained, allows the company to manufacture or do business on the licensed product or service.

Mamak Restaurant VS Fast Food Chains Restaurant

Mamak Restaurant VS Fast Food Chains Restaurant

(Forum in goals)

Mamak restaurant and fast food chains (KFC, McDonalds, Burger King, Pizza Hut, Dominos, Subway and etc) have a different business strategy.

In your opinion, what kind of business strategy are they deploying? Which restaurant do you prefer to go? Why does it so?

My answer is….in my opinion, for me, I prefer go both of the restaurant. But, if I want go into Mamak restaurant, firstly, I will look into the cleanness of the restaurant, when I go into the restaurant of fast food I will just go through it because the restaurant of fast food already in close place and clean.

Moreover when we go mamak restaurant, sometimes their cashier are not usually use the machine money to pay back customer money, so sometimes they will easily cheat customer and it is happen to my friend. When he check back his balance money was not enough. So it will make customer not satisfied and loss their trustees towards mamak restaurant.

As we know, mamak restaurant and fast food chains have different business strategies. Mamak restaurant use the cheap price and some customer choose to eat mamak restaurant because they have fast services and also commonly preference to Malaysian taste.

While fast food chains use advertising, we can see that ads in billboard, facebook, and their own website. Lastly, I prefer go both of the restaurant but, if I want go into mamak restaurant, I will check the cleanness first. That’s all from me,,,thank you,,,:)

The Business and Functional Level

Assalamualaikum my lovely teacher and my fellow friend...

Today i learn about the business and functional level (lecture, Thursday night)

A) Business level strategies refer to strategies that firms use to build competitive advantage.These   strategies include:

1) Low Cost Leadership
2) Differentiation Strategy
3) Focus Strategy.

1) Cost Level Strategy
     Cost level strategy refers to the firm's ability to produce goods and services at a lower cost  than its rivals. it is not necessary for firms to have the lowest cost in industries but its has lower costs than its competitors. in example, some companies have followed this strategy which is Dell (computers), AirAsia (air travel) and Mydin (grocery stores).

2) Differentiation Strategy
    Differentiation strategy is a business level strategy based on providing buyers with a unique on special product or service that distinguishes the firm's products on services from its competitors. Firms can differentiate themselves through product features, product customization or the level of services and support provided to the customers. For example, in the production and technology related activities, firms can develop flexible manufacturing system that allow different different models to be made or different option to be added on the same assembly line.

3) Focus strategy 
     Focus strategy refers to the business level strategy based on providing products or services to a specific niche within and industry. Focus strategies can occur in two forms: cost-based focus and differentiation-based focus.  

• Cost focus: a firm strives to create cost advantages in its target market segment. for example, Gap aims its Old Navy clothing line at customers who are cost conscious.

• Differentiation focus: a firm seeks to differentiate in its target market. For example, Porsche is a focused differentiators that markets its sports cars-only to the most affluent customers. 

B) Functional Level Strategies
     Functional level strategies are actions taken at the functional or operational level and they must be in line or contribute towards the overall strategy of the corporation. Functional strategies address problem commonly faced by lower-level managers, and handle activities considered relevant to achieve the business level and corporate level strategies.
     The value chain or the value chain analysis (VCA) is a systematic approach to examine the development of competitive advantage.
      Value chain activities can be classified into two main categories: primary activities and support activities. 

• Primary activities: are the activities involved in bringing materials into the business.operating on them, sending them out, marketing them and servicing them.
• Support activities: are the activities that improve the effectiveness or efficiency of the primary activities and other support activities in helping the organization achieve its competitive advantage. 

     
   

Hebat Gagah Swot Analysis, case study

Swot analysis for Hebat Gagah, case study (tutorial)

1)    Conduct a swot analysis for Hebat Gagah in assisting Yahya to attract a potential       venture capital
 

Strength:

-          Imported of halal gelatin for local market

-          Have research and development (RnD)

-          Well training and experience staff

-          Got assist by government agency

Weaknesses:

-          Lack of security

-          High capital involve in (RnD)

-          Lack in internal control of insurance and security

-          Limited source of raw materials

-          Limit of senior advisor or counselor

Opportunities:

-          Leading halal gelatin in Muslim world

-          Not enough supply from halal gelatin for Muslim market

-          Can make a sell in pharmaceutical

-          May supply to another Muslim country

-          Can attract Muslim investor

Treat:

-          Lacking of expertise

-          Lacking of awareness among customer

-          Have competitors among non-Muslim

-          Have limited suppliers

-          Hard to convince sponsor to get fund

2)   Recommend strategy for Yahya to be deployed in order to fulfill his mega project.

The strategy that Yahya can use to deployed in order to fulfill his mega project is he can using professional consultant for advise him about the process of halal gelatin. Moreover, he also can improve the research and development process in building or halal gelatin plant. Then, after the research and development, he can export to another country and show to the customers his good  product to convince venture capital.

ICEPS10 Swot Analysis

Assalamualaikum my blogger friend..

       October 10, 2014 (lecture)

       What I have learn today is about to do SWOT analysis in our ICEPS10.

 Swot Analysis have four criteria, which is strength, weakness, opportunities, and threats

strength :  
 •strategik  location in nilai, negeri sembilan

 •wide rage target market

 • get experience  and information from business

 • high commitment in every event and department

opportunities  : 

•can promote ICEPS10 internationally with student from chienease, Indonesia,etc

• get more experience on business studies

• get more profitability

threats  :  

•less networking with people outside

• not easy to get sponsorship

• political issues

• no seller or buyer from any event

Weaknesses : 

• lacking in marketing target for every event

• lack of asset and equipment

• the profit from every event still not achieve

• lack  of management in every event and department. 

Here are some picture that we have present in our lecture..

Say cheesss…:) 

 strengths in Iceps10

 weaknesses in Iceps10

 opportunities in Iceps10

threats in Iceps10

 After we do the Swot analysis, we can know about the the strength, weaknesses, opportunities, and the threats about the Iceps10. Then, with the Swot analysis also, we can encourage our self to do more better than previous Iceps10.