Strategy formulation
STRATEGY FORMULATION:
Objectives:
After you have studied this chapter, you should be able to:
1. Know the porter’s generic strategy
2. Describe the 5 powers of P’S
3. Explain the Essentials of Balance Score card
4. Discuss the Strategic Evaluation and Control
Strategy Formulation
- Stage of strategic management that involves planning and decision making that lead to the establishment of the organization’s goals and of a specific strategic plan.
The Five Power P’S
There are five power Ps that spell strategies in the works for a particular organization.
1. Position
- The advantage that an organization gains in the hands of the consumers. It is a position that a company should not allow the snatched by its competitors. Position strategies are the best exemplified by Porter’s Generic- Strategies.
2. Power
- A company should enjoy power over its competitors. It is a competitive edge, a following of some sort that a company should not allow competitors to surpass. There are power strategies that can be used in the company.
3. Pace
- There is timing and intensity of strategy put on the ground. It is the right time for strategy to work. This includes the adaptive methods.
4. Potential
- It is the probability of the success element of a particular strategy. It is necessary to know the important characteristics of a product or service that will spell success.
5. Performance
- It is the effective implementation of a particular strategy. Excellence performance relates to growth strategies.
Power Strategies There are two power strategies available for organizations.
1. Horizontal Integration.
2. Vertical Integration
Forward Integration
Backward Integration
Adaptive Methods
Miles and Snow discussed the need of the company to adapt to a constantly changing competitive environment. With this, they created three approaches of creating a competitive strategy.
THREE APPROACHES OF CREATING A COMPETITIVE STRATEGY
Prospector
Objectives:
After you have studied this chapter, you should be able to:
1. Know the porter’s generic strategy
2. Describe the 5 powers of P’S
3. Explain the Essentials of Balance Score card
4. Discuss the Strategic Evaluation and Control
Strategy Formulation
- Stage of strategic management that involves planning and decision making that lead to the establishment of the organization’s goals and of a specific strategic plan.
The Five Power P’S
There are five power Ps that spell strategies in the works for a particular organization.
1. Position
- The advantage that an organization gains in the hands of the consumers. It is a position that a company should not allow the snatched by its competitors. Position strategies are the best exemplified by Porter’s Generic- Strategies.
2. Power
- A company should enjoy power over its competitors. It is a competitive edge, a following of some sort that a company should not allow competitors to surpass. There are power strategies that can be used in the company.
3. Pace
- There is timing and intensity of strategy put on the ground. It is the right time for strategy to work. This includes the adaptive methods.
4. Potential
- It is the probability of the success element of a particular strategy. It is necessary to know the important characteristics of a product or service that will spell success.
5. Performance
- It is the effective implementation of a particular strategy. Excellence performance relates to growth strategies.
Power Strategies There are two power strategies available for organizations.
1. Horizontal Integration.
2. Vertical Integration
Forward Integration
Backward Integration
Adaptive Methods
Miles and Snow discussed the need of the company to adapt to a constantly changing competitive environment. With this, they created three approaches of creating a competitive strategy.
THREE APPROACHES OF CREATING A COMPETITIVE STRATEGY
Prospector