Business Level Strategies & Functional Level Strategies

2. Presentation Topic Business Level Strategies & Functional Level Strategies

3. Presented by Arbab Rahim Ayyaz Mehmood

4. Assigned by Madam Mehwish Aziz

5. What is strategy? A plan of action or policy designed to achieve a major or overall aim.

9. Five Generic Strategies Competitive Advantage Competitive Scope Cost Uniqueness Broad target Narrow target Cost Leadership Differentiation Focused Cost Leadership Focused Differentiation Integrated Cost Leadership/ Differentiation

23. 1. What businesses should the corporation be in? 2. How should the corporate office manage the array of business units? Corporate Strategy is what makes the corporate whole add up to more than the sum of its business unit parts Key Questions of Corporate Strategy

24. Levels and Types of Diversification Low Levels of Diversification Moderate to High Levels of Diversification Very High Levels of Diversification Related linked (mixed) < 70% of revenues from dominant business, and only limited links exist A B C Single business > 95% of revenues from a single business unit A Dominant business Between 70% and 95% of revenues from a single business unit B A Unrelated-Diversified Business units not closely related A B C < 70% of revenues from dominant business; all businesses share product, technological and distribution linkages Related constrained A B C

25. Strategic Leadership involves: Strategic Leadership The ability to anticipate, envision, maintain flexibility and empower others to create strategic change Multi-functional work that involves working through others Consideration of the entire enterprise rather than just a sub-unit A managerial frame of reference

26. Strategic Competitiveness Above-Average Returns Effective Strategic Leadership influence shapes the formulation of Successful Strategic Actions Formulation of Strategies Implementation of Strategies Strategic Leadership and the Strategic Management Process and Strategic Intent Strategic Mission

27. Managerial Discretion Factors Affecting Managerial Discretion External Environment Industry Structure Rate of market growth # and type of competitors Political/Legal constraints Product differentiation Interpersonal skills Tolerance for ambiguity Commitment to the firm Aspiration level Self-confidence Characteristics of the Manager Employee interaction Organizational Characteristics Resource availability Size and age Culture

28. Exercise of Effective Strategic Leadership Establishing balanced organizational controls Emphasizing ethical practice Developing human capital Exploiting and maintaining core competencies Sustaining an effective organizational culture Determining strategic direction Effective Strategic Leadership