A Business level strategy refers to a set of actions a business organization intends to undertake in order to improve on its competitiveness, service delivery and customer relations. It involves identification of competencies in core areas in order to gain comparative advantage over other firms. A business level strategy is key to market possession and penetration to new areas due to low cost of operations.
a. There are four generic strategies that are used to help organizations establish a competitive advantage over industry rivals. Firms may also choose to compete across a broad market or a focused market. We also briefly discuss a fifth business level strategy called an integrated strategy. A firm that successfully uses an integrated cost leadership/differentiation strategy should be in a better position to: a) adapt quickly to environmental changes
b) learn new skills and technologies more quickly
c) effectively leverage its core competencies while competing against its rivals DISADVANTAGES
An integrated cost/differentiation business level strategy often involves compromises.
An approach to aggregate planning that attempts to match supply andoutput with fluctuating demand. Depending on the product or service involved, the approach can incur costs by the ineffective use of capacity at periods of low demand, by the need to recruit or lay off staff, by learning-curve effects, and by a possible loss of quality. The advantages include low storage costs and greater ability to respond to the needs of the customer. Compare level output strategy.
a. Provides for level inventory performance throughout the planning horizon. Product is fresher when inventory builds are avoided. b. Inventory carrying cost is also lower
c. Produce as much as needed
d. Zero inventory is difficult to achieve because work hours may not be flexible e. Low inventory costs, high smoothing costs...
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