Chapter 6 Business Level Strategy Page 221 – 253 Bowman Strategy Clock Most Important. Sample Question: ← Identify strategic business units (SBUs) in organizations. ← Explain bases of achieving competitive advantage in terms of ‘routes’ on the strategy clock. ← Assess the extent to which these are likely to provide sustainable competitive advantage. ← Identify strategies suited to hyper-competitive conditions ← Explain the relationship between competition and collaboration
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Core Competencies A core competency is a concept in management theory originally advocated by CK Prahalad‚ and Gary Hamel‚ two business book writers. In their view a core competency is a specific factor that a business sees as being central to the way it‚ or its employees‚ works. It fulfills three key criteria: 1. It is not easy for competitors to imitate. 2. It can be re-used widely for many products and markets. 3. It must contribute to the end consumer’s experienced benefits. C.K. Prahalad and
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order to gain competitive advantage. The strategies relate to the extent to which the scope of a business’ activities are narrow versus broad and the extent to which a business seeks to differentiate its products. The differentiation and cost leadership strategies seek competitive advantage in a broad range of market or industry segments. By contrast‚ the differentiation focus and cost focus strategies are adopted in a narrow market or industry. Cost leadership With this strategy‚ the objective is to
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product differentiation. Distribution is the most important because Sara Lee is widely globalized corporation‚ good distribution is necessary to remain competitive. Low cost is vital when competing in foreign markets against local and regional competitors with fewer costs. Higher capacity utilization will lead to improvement in economies of scale. Brand recognition allows companies to generate sales in current and new markets based on reputation. The importance of product differentiation is largely
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environmental science and engineering‚ other domain sciences‚ business‚ design‚ public policy‚ public health and information technologies—to translate research ideas into practical developments to help both the university and the world address a broad range of complex and pressing environmental issues. Background and motivation The Harvard community currently lacks any other such translational research effort at the intersection of computation and the environment. Two main Harvard entities have
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A business-level strategy is an integrated and coordinated set of commitments and actions that firms use to gain a competitive advantage by exploiting core competencies in specific product market. Only firms that continuously upgrade their competitive advantages over time are able to achieve long-term success with their business-level strategy. Effective management of customer relationships help the firms answer questions related to the issues of who‚ what‚ and how. Customers are the foundation
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Chapter 4: BUSINESS-LEVEL STRATEGY (chapter 5 in the textbook) 1 “I surf to where hockey balls will be there…. not where it has to roll over.” - Wayne Gretsky 2 Strategic model Company Environment Strategy 4 levels of strategy • Function-level strategy • Business-level strategy • Corporate-level strategy • International strategy 3 Business Strategy - BUSN 162 1 Business-level strategy Business-level strategy: an integrated and coordinated set of Businessstrategy:
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and margins squeezed c. Barriers i. Economies of scale à decline per unit cost while production per unit increases. ii. Product differentiation à uniqueness. Achieved as a result of unique product attributes or effective marketing communications‚ or both.
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unit sold. 3. The major avenues for achieving a cost advantage over rivals include A. eliminating or curbing non-essential cost-producing activities and performing essential value chain activities more cost-effectively that rivals. 4. A differentiation-based competitive advantage E. often hinges on incorporating features that (1) raise the performance of the product or (2) lower the buyer’s overall costs of using the company’s product or (3) enhance buyer satisfaction in intangible or non-economic
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a distinct advantage by capitalizing on the strengths of the organization and the industry it is in. He has argued that a firm’s strengths ultimately falls into either cost advantage or differentiation‚ which applied either broadly or narrowly results in three generic strategies: cost leadership‚ differentiation‚ and focus. They are called generic strategies because they are not firm or industry dependent and are applied at the business unit level. The first generic strategy is cost leadership
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