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Foundations of Planning, Summary of Different Strategies:
Corporate:
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Foundations of Planning
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Competitive Strategy
- This strategy focuses on how an organization will compete in its business or businesses.
- The specifics of an organization’s competitive strategy depend upon an organization’s competitive advantage.
- Competitive advantage is what sets an organization apart from others.
- It is what an organization can do and yet others can not, or what an organization does better than anyone else. Organization can have more than one competitive advantage. In addition, some organization’s competitive advantages are obvious and some are not.
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- Having a competitive advantage to create a successful competitive strategy is great. However, change is a natural phenomena, so keeping the advantage is very important.
- Using strategic management helps organizations to keep their competitive advantage and continue successful competitive strategies.
Functional Strategy
- These are the strategies used by an organization’s various functional departments to support the organization’s competitive strategy.
- These strategies can and will vary, depending on the departments’ purpose and activities.
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Summary of Different Strategies:
- Corporate:
——Growth (Concentration, Horizontal Integration, Vertical Integration, Diversification),
——Stability,
——Renewal (retrenchment, turnaround).
- Competitive:
——Cost Leadership,
——Differentiation,
——Focus.
- Functional: various.
As managers plan, they develop both goals and plans.