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SECTION 9: HOW TO PURSUE STRATEGIES - Coggle Diagram
SECTION 9: HOW TO PURSUE STRATEGIES
CHANGE IN SCALE
types of growth
retrenchment
a business strategy to reduce its overall size or diversity of operations
takeovers
one business aquires control of the assets of another business either by a formal offer that is accepted or by the purchase of a controlling interest of shares
mergers
where two or more businesses join together by mutual consent
economies and diseconomies of scale
economies of scale are the proportionate savings in cost as a result of an increase in the size of an oprating unit
economies of scope are the proportionate savings gained by producing two or more disinct products when the cost of doing so is less than that of producing each seperatley
diseconomies of scale
refers to a situation where the economies of scale no longer occur and unit costs begin to increase rather than decrease
expeirence curve
the idea that the more you do something the better you get at it enabling quicker and cheaper production
synergy
the idea that the value and the perfr=ormance of two busineeses combined will be greater than the sum of the two parts
overtrading
a situation where a business grows too quickly undertaking more business that its working capital can cope with
greiners model of growth
growth through creativity
leadership crisis
growth through direction
autonomy crisis
growth through delegation
control crisis
growth through coordination
red tape crisis
growth through collaboration
growth crisis
growth through alliances
INNOVATION
kaizen
small continuous improvements
intrapreneurship
the practise of entrepreneurship that exists within an established business
benchmarking
a strategic and analytical process of continuously measuring an organisations products services and practices against a recognised leader
innovation
the process of converting an invention into a good, service or proccess that creates value for a business
value
competitive advantage
aligned to stratec positioning
stakeholder value
research and development
essential for innovation
protection
patents
a givernment license that gives the holder exclusive rights to a process deign or new invention
trademark
a recognisable name logo slogan or design that denotes a specific product or service and legally differentiatesw it from others
copyrights
the legal protection provided for the works of authors, composers and artists
INTERNATIONALISATION
methods of entering
exporting
little investment required
possible tarrifs and trade barriers
licensing
quick and low costs which avoids barriers
dependant on local producers
alliances
knowledge and expertise of local partner
means sharing knowledge and technology
direct investment
direct control and avoids barriers and lower costs
high risk with potential for management and control problems
off-shoring and re-shoring
off shoring
the movement of operations of a businees to another country
re shoring
the movement of operations back to the home country
bartlett and ghoushall
presures for local responsivenesss
the taste and preference of the local market - which may be different because of culture
presures global intergration
cost reductionism - likely to stem from the competitive environment
reasons for internationalisation
growth and profit
economies of scale
spread risk
trade liberalisation
tax
factors influencing internationalisation
risk
competition
market potential
legal and political environment
economic factors
cost
culture
methods of entry
DIGITAL TECHNOLOGY
e-commerce
buying and selling goods and services through an electronic medium
benefits
for a cinsumer
allows access to more products at a cheaper price and information is available instantly
for businesses
provides opportunities for sales 365 24/7 and offers a global reach potential cost reductions and supply chain improvements
drawbacks
for consumers
unable to examine products personally, dependant on system reliability, personal information can be stolen
big data
the amount of ever-increasing strucutred, semi-structured and unstructured data that have the potential to be mined for information
volume
the amount of data
velocity
the speed at which new data are generated and moved around
variety
the different types of data that can be used
veracity
the trustworhtiness of data particularly those on social media
data mining
the process used by organisations to turn large amounts of data into useful information
it can be used in marketing analysis and management
ERP
enterprise resource planning
the business management software system by which an organisation manages and integrates the important parts of the business
advantages
better analysis and planning capabilities
better management of resources
greater customer satisfaction
lower costs
value of digital technology
reduce costs
create efficiencies
enable into into new markets
maintain competitiveness
improve overall living standard
drawbacks
higher initial investment
change within an organisation can lead to stress and lower morale
impact in functional areas
financial
monitoring and anaylsis are quicker and easier
costly
marketing
new markets
more targeted promotion
reduced costs
operations
enabled greater automation and efficient inventory control
lower costs
greater flexibility
reduced waste
human resources
more flexible multi skilled workforce
better working conditions
costly
