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Your All-in-One AI-Powered Toolkit for Academic Success.
Available 24*7 on WhatsApp / Email
© 2024  |  Zucol Services PVT LTD  |  All rights reserved.
Discover strategic management types - competitive, business, corporate, functional, and operational strategies and their significance.
Strategic management is the process of developing and carrying out plans to realize a broad business strategy. The goal is to allocate resources, which entails developing a plan of action for how the company will spend resources in order to capitalize on its competitive advantage and accomplish its objectives. Making strategic decisions that harmonize a company's plan with its core strengths also requires monitoring the effectiveness of an organization's strategy over time.
1. Competitive Strategy
Competitive Strategy is one of the first strategies in the process of strategic management. The competitive strategy combines the strength of the current business with the outer resources to optimize the results. The main goal of this strategy is to gain a competitive edge over rivals in the market. Without a competitive strategy, a company may struggle to obtain a distinct advantage over rivals. Finding and creating innovative concepts for goods and services that the company can provide requires a competitive strategy. Implementing a competitive strategy has other benefits, such as:
The monopoly of a business can give a competitive edge over other businesses. A successful competitive strategy can be attained with the sustainable competition. The contrasting strategy, low-cost strategy, and focus or market-niche strategy are a few examples of competitive strategies.
2. Business Strategy
Popularly referred to as the "business-unit strategy," this strategy places a focus on strengthening the company's ability to offer competitive products or services. A competitive and cooperative attitude makes up business strategies.
The activities and strategies used to compete in denial of the competition are all covered by the business strategy. Additionally, behavior management covers a range of strategic issues. Plans of action make up the corporate strategy, as noted by Hill and Jones. The strategic managers of a corporation are those who adapt to use its resources. Additionally, managers alter their individual views to outperform their competitors in a market. Typically, the corporate strategy informs the development of the business strategy. Product development, innovation, integration, market development, diversification, and similar commercial strategies are the key points of emphasis.
Every day, a wide range of strategic issues are faced by Businesses. In order to sustain the market, you need to solve the above-given problems. These concerns are addressed by business strategy in addition to "how to compete."
3. Corporate Strategy
Corporate strategy is a unique long-term plan or framework developed with the intention of outpacing other market participants while keeping both stakeholder and client/customer promises.
Another, far more straightforward definition of corporate strategy is a series of choices where a business would stake its future on them. Every organization must choose how to use its limited resources in light of the fact that each one is finite.
Here are a few components that constitute corporate strategy:
Corporate strategy is crucial because it directs an organization's resources and abilities toward achieving well-defined mid- and long-term goals.
4. Functional Strategy
The method a business function uses to accomplish corporate and business unit objectives and strategies by maximizing resource productivity is known as a functional strategy. It deals with a somewhat constrained plan that lays out the goals for a certain business function.
A functional strategy aids in establishing goals that direct the best distribution of resources among various corporate activities. In order to maximize results, this technique also directs and enables coordination between the functions.
The functional strategy is to support the corporate divisions like marketing, human resources, production, and research and development. This strategy is implemented to manage and answer these issues.
The marketing department should create effective marketing campaigns that target innovators and early adopters through the appropriate channels if the business strategy is to sell new items to customers. The strategies at these levels are also known as functional strategies. These choices are referred to as tactical choices. Since these choices are mostly operational in nature, they are not truly strategic. As a result, using the term tactics instead of strategies is preferred. As a result, using the term tactics instead of strategies is preferred. However, the major goal of a functional strategy is not to attain functional excellence but rather to support the company's strategy.
5. Operational Strategy
An organization's system for achieving its long-term objectives and mission is referred to as its operations strategy. It involves making decisions based on a variety of variables, including product management, supply chain management, inventory, forecasting, scheduling, quality, and planning and management of facilities. Generally, the operation strategies focus on marketing and human resources that tend to align with the objective of the organization.
Operations management is the process of organizing and delivering a company's products or services, and it calls for thorough planning in the form of an operations strategy. Determining the optimum ways to use labor, resources, and technology for optimal output is a key component of a good management plan.
In terms of operations strategy and management, cost, quality, flexibility, and speed are the four competitive priorities. Your company's expansion and ongoing success will be fueled by thought and strategy around how to differentiate yourself from the competition in some or all of these areas.