《商业策略》（英文版） Situation analysis

Business policies and Strategies Situation Analysis and strategy Formulation Dr. Jerry L. huxell

Dr. Jerry L. Huxell Business Policies and Strategies Situation Analysis and Strategy Formulation

Situation analysis Process of finding a strategic fit between external opportunities and internal strengths while working around external threats and internal weaknesses Should we invest more in our strengths or in our weaknesses Dr. Jerry L. huxell

Dr. Jerry L. Huxell Situation Analysis • Process of finding a strategic fit between external opportunities and internal strengths while working around external threats and internal weaknesses • Should we invest more in our strengths or in our weaknesses?

Business Strategy Focuses on improving the competitive position of a companys products or services within the specific industry or market segment that the business serves Can be competitive or cooperative Dr. Jerry L. huxell

Dr. Jerry L. Huxell Business Strategy • Focuses on improving the competitive position of a company’s products or services within the specific industry or market segment that the business serves. • Can be competitive or cooperative

Porter's generic Competitive strategies Competitive Advantage Lower Cost Differentiation Cost Leadership Differentiation 巴≥三z Focused Cost Focus Differentiation Dr. Jerry L. huxell

Dr. Jerry L. Huxell Porter’s Generic Competitive Strategies

Cost leadership Low cost producer Broad mass market Efficient-scale facilities Process engineering skills Focus on cost reductions Tight financial controls Sustained capital investments Dr. Jerry L. huxell

Dr. Jerry L. Huxell Cost Leadership • Low cost producer • Broad mass market • Efficient-scale facilities • Process engineering skills • Focus on cost reductions • Tight financial controls • Sustained capital investments

Differentiation Unique product or service Broad mass market Brand image technology or distribution ability to charge premiums Lower customer sensitivity to price Product engineering skills Strong marketing Dr. Jerry L. huxell

Dr. Jerry L. Huxell Differentiation • Unique product or service • Broad mass market • Brand image, technology, or distribution • Ability to charge premiums • Lower customer sensitivity to price • Product engineering skills • Strong marketing

Corporate Strategy Issues Directional strategy firms overall orientation toward growth, stability, or retrenchment Portfolio strategy - industries or markets in which the company competes Parenting strategy -manner in which management coordinates activities transfers resources, and cultivates capabilities Dr. Jerry L. Huxell

Dr. Jerry L. Huxell Corporate Strategy Issues • Directional strategy – firm’s overall orientation toward growth, stability, or retrenchment • Portfolio strategy – industries or markets in which the company competes • Parenting strategy – manner in which management coordinates activities, transfers resources, and cultivates capabilities

Corporate Directional Strategies GROWTH STABILITY RETRENCHMENT Concentration Pause/Proceed with Caution Turnaround Vertical growth No Change Captive company Horizontal growth Profit Se|outDⅳ estment Diversification Bankruptcy/Liquidation Concentric Conglomerate Dr. Jerry L. huxell

Dr. Jerry L. Huxell Corporate Directional Strategies

Growth Strategy Options Market penetration -increase market share Compete on product/service quality Compete on delivery time Market development-domestic and foreign Product development Diversification Dr. Jerry L. huxell

Dr. Jerry L. Huxell Growth Strategy Options • Market penetration – increase market share – Compete on product/service quality – Compete on delivery time • Market development – domestic and foreign • Product development • Diversification

Reasons for related diversification Control of supplies Control of markets Access to information Cost savings Spreading risks Resource utilization Building on technology Dr. Jerry L. huxell

Dr. Jerry L. Huxell Reasons for Related Diversification • Control of supplies • Control of markets • Access to information • Cost savings • Spreading risks • Resource utilization • Building on technology