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SM Finals

STRATEGIC MANAGEMENT - 2 REVIEWER

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33 views19 pages

SM Finals

STRATEGIC MANAGEMENT - 2 REVIEWER

Uploaded by

Asio arjay
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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STRATEGY FORMULATION

Value Chain Analysis

 Value chain - is a general term that refers to a


sequence of interlinked undertakings that an
organization operating in a specific industry engages
in.

 The value chain concept is concretized in supply


chain management.
SUPPLY CHAIN MANAGEMENT

Supply chain management is a broad continuum


of specific activities employed by a company. It
consists the following:

1.Supply management
2.Production and operations
3.Logistics
4.Marketing and sales
1. SUPPLY MANAGEMENT
Supply Management is now a popular term used for purchasing
which was formerly termed as procurement. It is a key business
function that is responsible for:
Identifying material and service needs
Locating and selecting suppliers; negotiating and closing contracts
Acquiring the needed materials; services, and equipment
Monitoring inventory stock keeping units
Tracking supplier performance
A. SOURCING AND ORDERING

- is generated when supplier relationships are created and


managed in delivering quality products on time and
competitive prices.

B. INVENTORY MANAGEMENT

- it includes all unprocessed raw materials, work-in- process,


finished goods and maintenance and repair.
2. PRODUCTION AND OPERATIONS

Production and operations - are processes that transform


operational input into output to satisfy consumer needs and
requirements. This transformational process consists of
manufacturing and assembly.
A. Manufacturing - is the process of producing goods using
people or machine resources. It commonly refers to industrial
production where raw materials are converted into finished goods.
B. Assembly - is the process of putting together raw materials
into desired output. Quality raw materials and parts, efficient
production layouts and processes, and employees with skills and
motivation are essential to effective transformational process.
3. LOGISTICS
Logistic management includes the supervision of certain sequential process.
These includes
A. Warehousing– is the function of physically packing finished goods or
merchandises in a building, room, or any space for temporary storage.

B.Scheduling – Act of organizing these inventory units and booking them


for delivery.

C.Dispatching – Products are for transfer.

D.Transportation – Scheduling and other logistics are necessary to make


dispatching cost efficient.

E. Delivery to the specified site is undertaken. It closes the entire logistics


cycle.
4. MARKETING AND SALES

 A. Promotion
- Promotion is a marketing tool, used as a
strategy to communicate between the sellers
and buyers.

 B. Selling
- give or hand over (something) in exchange
for money.
Life cycle strategies
The life cycle of any product/ service refers to the lifespan that a
commodity/service undergoes from its introduction state to its growth, maturity
and decline stages.

1. Introduction Stage – Period of launching the product/service for


acceptance.

2. Growth Stage – Phase where the product/service gains acceptance by the


consumers.
3. Maturity Stage – Period where the product has reached its penultimate
level.

4. Decline Stage – Period where the product/service begins to reach or is


reaching its lowest point.
G R O W T H S T RAT E G I E S
is a mode adopted by an organization to
achieve its main objectives of increasing
volume and turnover.

16
MARKET PENETRATION

- Suggest that for an organization to increase growth, It can be actualized by selling

more of its current products/services to its current customers or buyers.

MARKET DEVELOPMENT

- the process where a company can sell more of its current products by seeking and

tapping new markets .

PRODUCTS DEVELOPMENT

- Is an internal growth strategy where the company sells "new" product to an existing

market .

DIVERSIFICATION
17
C O M P E T I T I V E S T RAT E G I E S
are essentially long-term action plans prepared with the
end goal of directing how an organization will survive and
compete.

18
1. LOW-COST LEADERSHIP STRATEGY

The objective of the low-cost leadership competitive strategy is to

offer products and services at the lowest cost possible in the industry.

2. BROAD DIFFERENTIATION STRATEGY

The objective of the broad differentiation competitive strategy is to

provide variety of products, services or product/service features that

competitors do not offer or not able to offer to costumers.

3. BEST-COST PROVIDER STRATEGY

It is implemented when the organization gives it's costumers more

value for money by emphasizing both low-cost products and services with
19
unique features.
4. FOCUSED/MARKET-NICHE LOWER COST STRATEGY
This strategy is implemented when the organization
concentrates on a limited market segment and creates a
market niche based on lower costs.

5. FOCUSED/MARKET-NICHE DIFFERENTIATION
STRATEGY
This strategy is implemented when the organization
concentrates on a limited market segment and creates a
market niche based on differentiated features like design,
utility and practicality. 20
Retrenchment Strategies
Sometimes, companies encounter serious difficulties. When a company’s
survival is threatened or when it is not competing effectively. There are
different modes of dealing with this situation. They are the following:
1. Liquidation – Most radical action a company takes when the company is
losing money and thus, is further compounded by a disinterest on the
part of the stockholders to do anything more to save it.

2. Divestment – Implemented when a company consistently fails to reach


the set objectives or when the company does not fit well in the
organization.

3. Turnaround Strategy– Adopted when the organization has reached a


significant level of non-performance, non-productivity, demoralization,
and unprofitability, and therefore has to implement restoration
strategies.
TURN AROUND STRATEGY MODEL

A. CLIMATE AND CULTURE

- the toughest and most challenging area for any organization undergoing

a turnaround strategy if the climate and culture.

B. PRODUCTS AND SERVICES

- is needed ask questions like what products/services are marketable in the

industry, which of this product and services need some improvements or

major redesign, and what distinct features can be introduced to attract

buyers.
28
C. PRODUCTION AND OPERATION

- In the implementation to turnaround strategies, this is the easiest

phase to sort out and manage.

D. INFRASTRUCTURE

- Technology is the best infrastructure strategy that can bring out radical

improvements.

E. FINANCES

- When the organization needs a turnaround strategy, it is because its

finances are waving a "red flag." 29


30

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