1. Focus strategy in the present competitive environmentIt is a generic marketing strategy. The firm has a few segments and niche markets it concentrates on. The products of this organization can satisfy the needs of this segment. A geographic market, product line, or buyer group may define a particular segment.Examples of focus strategyFocused cost-leadership – affordable solutions; competing with low prices in a target segment; Netflix and Claire are two organizations that have used the focus strategy for video-streaming and inexpensive jewelry.
·Focused differentiation – A particular sales channel or demographic group with an emphasis on unique features that appeal to consumers; Example, Mercedes Benz and Whole Foods Market for safety-innovations and cutting-edge technology; organic & natural products respectively.2. Relationship between strategy & structureStrategy: Plan for the whole business to achieve set targetsStructure: Manner in which internal resources get connected; concerned with different groups.
Strategy decides the structure of an organization.An organization with a diversified product portfolio has a functional structure. It operates through marketing, manufacturing, and, finance structures.Example: Coca-Cola has an M-form structure. Geographic operating segments function as Strategic Business Units.
The organization’s structure is in line with its strategy. Large-scale production controls costs. Technology is being used to drive efficiency and growth.Matching structures for business-level strategy are product team, matrix, functional, and, product, geographic or market structure. Vertical integration and diversification are strategies that also drive the structure of an organization. Strategic priorities determine an organization’s structure.
Coca-Cola has six SBUs. The structure may be strategic, based on a product or process.3. SWOT is used to find out key external and internal resources.
Strengths are matched to opportunities. Matching is done and conversion strategies are applied to find new markets. Weaknesses are minimized when a transition is not possible.Matching external opportunities to internal resources creates a competitive advantage for the organization. Maximum usage of resources comes about through external and internal environments of firms. The strategy can be implemented when there is consistency relative to internal and external environments. Porter’s five forces and Pestle framework are models that analyze and measure external environment.
Strategic principles are derived from the external environment and internal value chain. Internal resources are the support and primary activities. External environment includes the labour markets, the economy, the regulatory environment, technology, and, markets. Strategic analysis derives principles that leverage strengths and bring profits to the organization.4. It is important to understand a firm’s strategy even if you are not a senior manager as there is a disconnect between strategy execution and formulation employees do not understand the organization’s strategy. On an average, more than 90% of a firm’s employees do not understand the strategy that the firm has created for making the products and services order qualifiers and winners. Employees who operate processes and are closest to customers cannot project the services as qualifiers and winners if they do not understand and cannot effectively implement its strategy.
In the last two-decades performance breakthroughs have come through balanced scorecard, communication, and, associated tools to monitor and guide the execution of the organization’s strategy. Units responsible for execution cannot implement as communication units disseminate information by Q3. HR coordinates personal development to strategy by Q4. The organization’s strategy is thus not implemented as it should be.