STRAMNGMT Business Strategies - F. Young

strategic management business administration

1. BUSINESS STRATEGIES CHAPTER 4 Presented by Mylene Galdiano And Kristine Kyle Acosta

2. KEY TOPCS: Value chain analysis Different types of business strategies . -Growth strategies -Competitive strategies -Life cycle strategies -Stability strategies -Turnaround strategies  

3. VALUE CHAIN ANALYSIS The main business definition of any organization is to produce goods and render services,and to achieve these set goals and objectives,It engages in a series of activities.If an organization wants to be profitable,it has to sell value to it's buyer—value that is worth paying for. Value chain is a general term that refers to a sequence of interlinked undertakings that an organization operating in a specific industry engages in. SUPPLY CHAIN MANAGEMENT Is a broad continuum of specific activities employed by a company consists:

4. Supply management A popular term used for purchasing which can formerly termed as procurement.It is a key business function that is responsible for : Identifying materials and services needs,locating and selecting suppliers; negotiating and closing contracts.Acquiring the needed materials,services,and equipment,Monitoring inventory stock keeping units and tracking supplier performance. SOURCING AND ORDERING In sourcing and ordering,value is generated when supplier relationship are created and managed in delivering quality products.

5. Steps to take when an organization needs to source out raw materials or parts: . Specify the need clearly by writing down details. b.) Identify and analyze possible sources of supply. c.) Ask potential suppliers for their respective quotation,proposals,and bids. d.) Compare and evaluate submitted documy,the select the suppliers. e.) Prepare place,follow up,and expedite the purchase order (PO). f.) Confirm the order place has actually arrived in good condition and at the quantity. g.) Invoice clearly and payment follows.  

6. Inventory Management The role of inventory is to buffer uncertainty.It includes all purchased materials and goods, partially completed materials and component parts,& finished goods 4 Broad Categories of Inventories •All unprocessed purchased input or raw materials for manufacturing •Work-in-process(WIP). •Finished goods include all completed products for shipment. •Maintenance, repair,and operating supplies (MRO). Inventory Models Answered: How much to order? When to order? Answered by determining the economic Answered by computing for the order quantity (EOQ).It seeks to determine reorder point (RP). an optimal order quantity where the sum of the annual order costs and annual carrying costs is minimized.

7. PRODUCTION OR ORERATION Processes that transform operational input into output to satisfy consumer needs and requirements. -Manufacturing The process of producing goods using people or machine resources.Commonly refers to industrial production where raw materials are converted into finish goods. -Assembly Process of putting together raw materials into a desired output . INCLUDE: Warehousing –Physically packing finished goods in building,room or any space for temporary storage. Scheduling –Act of organizing these inventory units and booking for delivery. Dispatching –Products are for transfer( posting,mailing,shipping out & transmitting. Transportation –Considerations have to be prioritize in terms of location site,ease,gravity of Traffic,safety,and labor requirements. Delivery-Specified site is undertaken.It closes the entire logistics circle.

8. MARKETING & SALES . Products are produced and services are rendered for Ultimate release to customers.Therefore,there is a need to market these merchandise to interested buyers.Companies can adopt different modes of marketing to attract and sell to customers. Promotion Selling

9. TYPES OF BUSINESS STRATEGIIES

10. 1.)GROWTH STRATEGIES -Internal or integrative.One of the most important consideration for every organization.Growth strategy is a mode adopted by an organization to achieve it's main objectives of increasing in volume and turnover.

11. Internal(Integrative) Growth Strategies Approaches adopted within the company.These broad growth strategies can be: a.) Market Penetration -Suggests that for an organization to increase its growth,market penetration ca be actualize by selling more of it's current products or services to it's current customers or buyers. b.) Market Development -Process where a company can sell more of it's current products by seeking and tapping new market. c.) Product Development -An internal growth strategy where the company sells "new" products to an existing market . d.) Diversification -Product or market mix growth strategy that involves creating differentiated products for new customers.  

12. 2.)COMPETITIVE STRATEGIES . Essentially long-term action plans prepared with the end goals of directing how an organization will survive and compete.These strategies are formulated to help organization to gain competitive advantage after evaluating and comparing their strengths and weaknesses against their competitors.

13. TYPES OF COMPETITIVE STRATEGIES -Low-cost leadership strategy It's objective is to offer products and services at the lowest cost possible in the industry -Broad Differentiation strategy It's objective is to provide a variety of products,services or product/service features that competitors do not offer or are not able to offer to customers. -Best-Cost provider Strategy A combination of low cost leadership and broad differentiation strategy.It is implemented in the original gives it's customers more value of money by emphasizing both low cost products and services with unique features.

14. TYPES OF COMPETITIVE STRATEGIES -Focus/Market niche lower cost strategy Implemented when the original concentrate on a limited market segments and creates a market niche based on lower costs.Being dedicated,the store can purchase stocks and bulk,avail of price discount,and therefore sell at low prices. -Focus/Market niche differentiation strategy Implemented when the original concentrates on limited market segments and creates a market niche based on differentiated features like design,utility,and practicality. OTHER TYPES OF COMPETITIVE STRATEGIES Innovation strategy Operational effectiveness strategy Economic of Scale Technology Strategy

15. 3.)LIFE CYCLE STRATEGIES The life span that the commodity/service undergoes from its introduction stage to its growth,maturity,and declined stages. • Introduction stage – Period of launching products/service for acceptance. • Growth stage – Phase where the product/service gains acceptance. • Maturity stage – Period where the product has reach its penaultimate level. • Decline stage – Period where the product/service begins to reach its lowest point.

16. 4.)STABILITY STRATEGIES Original that doing better in their existing business,they may choose not to implement any growths strategy or not adopting any growth strategies.Stable and comfortable with their current market niche and any long strategy may attract attention of competitors.

17. 5.)RETRENCHMENT STRATEGIES Sometimes companies encounter difficulties.When a companies survival is threatened or when it is not competing effectively. Modes of dealing with this situation: LIQUIDATION -Most radical action a company takes when the company is losing money and thus,is for their compounded disinterest on the part of the stockholders to do anything more to save it. DIVESTMENT -Implemented when a company further to reach the set objectives or when the company does not fit well jn the organization.

18. c. TURNAROUND STRATEGIES -Adopted when the organization has reached a significant level of non-performances, non-productivity, demoralization, an profitability. Climate & Culture -The strategy is to first study the organization and audit job descriptions of each the employees vis-a-vis their functionality and their departments are business unit. B. Products & Services -Review of products offered and services rendered is needed ; as question like what products/services are marketable in the industry, which of does product or services need some improvement,and what distinct features can be introduce to attract buyers.

19. c. TURNAROUND STRATEGIES -Adopted when the organization has reached a significant level of non-performances, non-productivity, demoralization, an profitability. C.Production & Operations The easiest phase to sort out and manage.Finding out whether the processes are lean and efficient need to conduct facility, equipment, production and operation review. D.Infrastructure Turnaround strategies can easily achieve significant improvement in the infrastructure is correctly assessed and appropriate interventions are introduced or reinforced. E.Finances Finances are waving "a red flag".This may meant the organization is losing money or is marginally profitable,causing concerns to investors.

20. THANK YOU!