Strategic Management and Core Competence
MB0052-Strategic Management and Business Policy 1. Explain the corporate strategy in different types of organization.
A Well-formulated strategy is vital for growth and development of any organization—whether it is a small business, a big private enterprise, a public sector company, a multinational corporation or a non-profit organization.
Small business, for example, generally operates in a single market or a limited number of markets with a single product or a limited range of products. The nature and scope of operations are likely to be less of strategic issue than in larger organizations. Not much of strategic planning may also be required or involved; and, the company may be content with making and selling existing products and generating some profit. In many cases, the founder or the owner himself forms the senior/top management and his (her) wisdom gives direction to the company. In large businesses or companies—whether in the private sector, public sector or multinationals—the situation is entirely different. Both the internal and the external environment and the organizational objectives and priorities are different. For all large private sector enterprises, there is a clear growth perspective, because the stakeholders want the companies to grow, increase market share and generate more revenue and profit. Multinationals have a greater focus on growth and development, and also diversification in terms of both products and markets. This is necessary to remain internationally competitive and sustain their global presence. For example, multinational companies like General Motors, Honda and Toyota may have to decide about the most strategic locations or configurations of plans for manufacturing the cars. They are already operating multi location (country) strategies, and, in such companies, roles of strategic planning and management become more critical in optimizing manufacturing facilities, resource allocation and control. In public
A Well-formulated strategy is vital for growth and development of any organization—whether it is a small business, a big private enterprise, a public sector company, a multinational corporation or a non-profit organization.
Small business, for example, generally operates in a single market or a limited number of markets with a single product or a limited range of products. The nature and scope of operations are likely to be less of strategic issue than in larger organizations. Not much of strategic planning may also be required or involved; and, the company may be content with making and selling existing products and generating some profit. In many cases, the founder or the owner himself forms the senior/top management and his (her) wisdom gives direction to the company. In large businesses or companies—whether in the private sector, public sector or multinationals—the situation is entirely different. Both the internal and the external environment and the organizational objectives and priorities are different. For all large private sector enterprises, there is a clear growth perspective, because the stakeholders want the companies to grow, increase market share and generate more revenue and profit. Multinationals have a greater focus on growth and development, and also diversification in terms of both products and markets. This is necessary to remain internationally competitive and sustain their global presence. For example, multinational companies like General Motors, Honda and Toyota may have to decide about the most strategic locations or configurations of plans for manufacturing the cars. They are already operating multi location (country) strategies, and, in such companies, roles of strategic planning and management become more critical in optimizing manufacturing facilities, resource allocation and control. In public