Strategic Planning (College) Strategic Planning Introduction Business organizations usually formulate strategies depending on the size and nature of their business. However, according to the generic strategy concept, a business firm has two determinants to be followed in the industry…
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He explained that the success of the company depends on the strategy they chose such as cost leadership, differentiation, and focus; and a firm, for its smooth running must chose one of the strategies and work on it. Cost Leadership The cost leadership strategy helps the firm to remain as a low-cost producer in the industry. To achieve the maximum result, this strategy must be utilized on a standardized product by trying to make maximum use of the cost sources. When there is a price war, or when the industry matures, a firm with cost leadership can remain profitable for longer period than the competing firms. Differentiation Strategy Differentiation strategy means uniqueness within the industry, having specific dimensions that buyers are ready to value and willing to pay a price premium. Even if there is an increase in the price of the product, the producer still gets the profitability, because the product has the unique attributes and the consumers are not able to find a substitute product easily. Focus strategy This strategy tries to achieve either cost advantage or differentiation advantage, concentrating on a narrow segment. The focus strategy focuses entirely on the needs of group, and so enjoys a greater customer loyalty. The following part of the paper will discuss how some prominent retail firms have been implementing the above said strategies in their business operation. Tesco Tesco, a world famous retailer firm, refers to generic strategies as a tool to determine the characteristics of retailers’ response to industry structure. Big concerns like Tesco can obtain the reasonable cutthroat benefit by following any one of the three generic strategies of Porter. By utilizing the first strategy of cost leadership, Tesco can try to have the lowest production cost in the whole industry and can offer their products and service to the market at the lowest cost. The cost leadership strategy shows the ability of the firms to control their operating costs so well that they can price their products competitively. Having a greater degree of competitive advantage, they are able to generate high profit margins. If differentiation strategy is to be established, Tesco has to offer products and services which has unique feature that are not offered by any other firm. If so, the firm gets a brand loyalty and inelasticity of price. Between these two strategies, Tesco choose to follow the cost leadership strategy. To select between the strategies, the management had made use of the last porter’s focus strategy. For the implementation of the strategy they introduced different tactics, such as focusing on the internal efficiencies which helped Tesco to resist the outer force from the other firms. On the way to control their cost of production, they had regular communication with the suppliers, government, and the regulatory authorities. They made a policy to supply the specific products to the broad market. These helped them in attaining a high position and profitability. Bang and Olufsen Bang and Olufsen distributes hi quality hi-fi devices in the market. While evaluating B&O’s financial strategies, we find that it make use of the competitive benefit of differentiation. The company offers surprising products to the consumers which set new standards for the company, because it always aims at “
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(Strategic Planning Essay Example | Topics and Well Written Essays - 750 Words - 1)
“Strategic Planning Essay Example | Topics and Well Written Essays - 750 Words - 1”, n.d. https://studentshare.org/music/1427120-strategic-planning.
The use of SWOT analysis is widespread and useful in this context. SWOT analysis helps in strategic planning process by analyzing the business’s success factors, its weaknesses and provides an insight to the opportunities and threats that are prevalent in the industry that it works in.
It is the manager’s responsibility to ensure that the strategic planning of the firm is consistent with the needs of the market and the future expectations of demand from the consumer. The difference between strategic planning and planning is accounting for competitor trends and future demand and planning a strategy that is consistent with it.
Strategic planning may also mean a directed approach which is deliberately created to satisfy the need of the audience. It encourages the sharing of ideas through participation and therefore results into right judgment. As a result efficient decision making can be achieved through thorough analysis and successful implementation of policies and promotion of learning between the stakeholders (Langford & 2001).
1.1. General Environment This environment entails the patterns in the wider society, which influences the banking industry, and especially Wells Fargo Bank. In this case, this environment has seven main segments, which include demographics, economic, political/legal, social cultural, technological, global, and physical environment patterns (Ireland el at, 2009).
r that the capital projects involve high levels of investments and these are mainly used for acquiring asses and also to assist the company increase the size of its operations. The investments that are made have a major affect on the company and the operations of the company.
determination of the long-term goals and objectives, determining the allocation of resources and course of action, Andrews finds that the patterns of decision taken by the company produces the plans and policies to achieve its goals. Hofer and Schendel define it as the pattern
acing failure in developing answers, facing failure in staff coordination, ineffective management, and failure in recognizing board’s limits (Liff, 1997).
Some of the success factors for Kaiser Permanente include overcoming challenges and difficulties, good partnership with
Rudd loses an estimated amount of $106,322.26 annually. The departments of the corporation are welding, painting and shipping.
In spite of Rudd Corporation being a small corporation, it has managed to employ an employee’s number of four
The three C’s i.e. collaboration, cooperation, and coordination play a very important role in the process of strategic planning. Strategic planning is based on consulting the right sources of information at the right time.
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