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Integrated Case Study 1

A competitive advantage allows a company to outperform its competitors through superior margins. It must be difficult to duplicate. There are three levels of strategy - corporate, business, and functional. Corporate strategy defines the business areas a firm will operate in. Business strategy defines a competitive position within a product market. Functional strategy sets objectives aligned with business strategy in areas like marketing and operations. SWOT analysis assesses internal strengths and weaknesses and external opportunities and threats. It provides visibility on performance and areas for improvement to inform strategic planning and adaptability to market conditions.

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80 views3 pages

Integrated Case Study 1

A competitive advantage allows a company to outperform its competitors through superior margins. It must be difficult to duplicate. There are three levels of strategy - corporate, business, and functional. Corporate strategy defines the business areas a firm will operate in. Business strategy defines a competitive position within a product market. Functional strategy sets objectives aligned with business strategy in areas like marketing and operations. SWOT analysis assesses internal strengths and weaknesses and external opportunities and threats. It provides visibility on performance and areas for improvement to inform strategic planning and adaptability to market conditions.

Uploaded by

FS Bit
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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MUHAMAD FAIEZ BIN AB GHANI

62213218130

1) what is competitive advantage? Why do we need to ensure sustained


competitive advantage

A competitive advantage is an attribute that enables a


company to outperform its competitors. This allows a
company to achieve superior margins compared to its
competition and generates value for the company and its
shareholders.

A competitive advantage must be difficult, if not impossible,


to duplicate. If it is easily copied or imitated, it is not
considered a competitive advantage.

A competitive advantage distinguishes a company from its


competitors. It contributes to higher prices, more customers, and
brand loyalty. Establishing such an advantage is one of the most
important goals of any company.
In today’s world, it is essential to business success. Without it,
companies will find it difficult to survive.

2) what are the 3 level of strategies

Strategy can be formulated at three levels, namely, the corporate level, the
business level, and the functional level. At the corporate level, strategy is
formulated for your organization as a whole. Corporate strategy deals with
decisions related to various business areas in which the firm operates and
competes. At the business unit level, strategy is formulated to convert the
corporate vision into reality. At the functional level, strategy is formulated
to realize the business unit level goals and objectives using the strengths
and capabilities of your organization. There is a clear hierarchy in levels of
strategy, with corporate level strategy at the top, business level strategy
being derived from the corporate level, and the functional level strategy
being formulated out of the business level strategy.
In a single business scenario, the corporate and business level
responsibilities are clubbed together and undertaken by a single group,
that is, the top management, whereas in a multi business scenario, there
are three fully operative levels.

Corporate Level
Corporate level strategy defines the business areas in which your firm will
operate. It deals with aligning the resource deployments across a diverse
set of business areas, related or unrelated. Strategy formulation at this
level involves integrating and managing the diverse businesses and
realizing synergy at the corporate level. The top management team is
responsible for formulating the corporate strategy. The corporate strategy
reflects the path toward attaining the vision of your organization. For
example, your firm may have four distinct lines of business operations,
namely, automobiles, steel, tea, and telecom. The corporate level strategy
will outline whether the organization should compete in or withdraw from
each of these lines of businesses, and in which business unit, investments
should be increased, in line with the vision of your firm.

Business Level
Business level strategies are formulated for specific strategic business
units and relate to a distinct product-market area. It involves defining the
competitive position of a strategic business unit. The business level
strategy formulation is based upon the generic strategies of overall cost
leadership, differentiation, and focus. For example, your firm may choose
overall cost leadership as a strategy to be pursued in its steel business,
differentiation in its tea business, and focus in its automobile business.
The business level strategies are decided upon by the heads of strategic
business units and their teams in light of the specific nature of the industry
in which they operate.

Functional Level
Functional level strategies relate to the different functional areas which a
strategic business unit has, such as marketing, production and operations,
finance, and human resources. These strategies are formulated by the
functional heads along with their teams and are aligned with the business
level strategies. The strategies at the functional level involve setting up
short-term functional objectives, the attainment of which will lead to the
realization of the business level strategy.

3) why SWOT is important?

SWOT is an important acronym for individuals and organizations alike in


the business world and it stands for Strengths, Weaknesses, Opportunities
and Threats. SWOT analysis is a useful technique to assess these four
attributes which play a crucial role in an organization.

Strengths and weakness refer to internal factors such as (current


processes, human resources, physical and financial resources etc.)
while opportunities and threats focus on external factors such as (market
trends, economic trends, pollical and economic regulations etc.).

A SWOT analysis helps evaluate where a company stands in a


competitive market and what steps need to be taken for further strategic
planning, helping decision makers draw a future roadmap for the
company.
Here are some key points that make it especially useful for companies:
 A SWOT analysis helps organizations get visibility on their current
status, letting them understand and measure overall business
performance.
 It lets a business analyze their strength, which in turn can help them
better penetrate the market to meet business targets.
 It lets organizations get visibility on their weaknesses and potential
areas of improvement. This information helps them plan for and
mitigate future roadblocks, ensuring long term growth of business.
 By leveraging its SWOT analysis, a business can create a strategic
plan to meet desired objectives and adapt to changing market
conditions.
 It lets businesses understand and better identify internal and external
factors and their positive and negative impacts on the business. This
information can help businesses be more proactive by helping them
take appropriate actions in a dynamic market to maintain momentum.

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