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Corporate/Business/Functional

Strategy and Planning


 Strategy: Mix of competitive moves and actions for completing a task better than
other

Planning: A list of steps taken to accomplish a future action

Strategy speaks to the reasons why, while the plan is focused on how, when and
where etc

Strategy: Designing a plastic lens rather than glass in spectacles


Planning: How to get the plastic, what type, when etc ?

 Strategic planning is the determination of the basic long term goals and objectives
in an organization and adoption of courses of action and allocation of resources
necessary for carrying out these goals more efficiently than others in the same
business do.
Levels of Strategic Planning

Corporate Level e.g. CEO, Board of Directors Multi business


Corporation..CG

Business Level/Divisional level


SBU2..CG
e.g. General Managers SBU1..CG foods
Electronics

Functional or Operational
Level e.g. Supervisors, HR Marketing
Department incharge
Levels of Strategic Planning (contd..)

 Corporate level : CEO, Board of directors are involved


Setting of the company’s Mission and Manages the portfolio of
Businesses…What Business To Do?

Strategy Involved :
Stability strategy: No change
Diversification: Acquiring a business other than that of its current product/services e.g
Chaudhary Group is bringing out CG Telecom in near future.
Expansion/Growth Strategy: Sales revenue, profit or total assets or geographical
Retrenchment: Divestment of SBU, liquidation(close the business by selling assets)

Major Functions: Developing SMART Objectives and establishing SBUs to


accomplish them
Levels of Strategic Planning (contd..)

 Business Level(Divisional Level): General


Managers are involved.

Actions that create value to customers either by


 performing different activities or
 Performing activities differently

Strategy Involved :
Cost Leadership: Cut cost through production overhead minimization, choosing the
right suppliers that offer the most competitive prices
For e.g., Dell does not invest heavily in R&D to produce leading-edge computers. Rather, it
sells good machines at a discounted price.
Business Level Strategy (contd..)

Differentiation: Make product/services unique, superior reliability(it breaks down


less often or not at all), better design, superior functions and features, better point-
of-sale service, better after-sales service and support, better branding etc

For e.g. Rolex watch is differentiated from a Timex watch by superior design,
functions, features, and reliability
A Toyota car is differentiated from a General Motors car by superior reliability (new
Toyota cars have fewer defects than new GM cars);

Focused: Segmentation….focusing your products and marketing on a very specific


audience

Major Functions: Competitive Advantage


An Important management tool of SBU is the SWOT Analysis
Levels of Strategic Planning (contd..)

 Functional Level: First line managers and supervisors are involved.


Daily operational jobs…particular functional areas like marketing, production, human
resource, research and development, finance and so on.

 HR: increase hiring of highly-trained employees


 Marketing: improve brand identification
 Production: reduce rejections

Strategy Involved:
HR strategy, Marketing Strategy, Production Strategy based on the department dealt
with

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