Week 4
Strategic Choice and Evaluation In today’s businesses it is important that companies evaluate all areas of operation to ensure their success. Each area of a business should implement some type of strategic plan that sets the platform of how the company will be successful. Innovative ideas are an important part of making certain the company remains a leader in the market. Being innovative requires Progressive Insurance to strategize in all departments. In order to meet objectives for the Progressive Insurance evaluation of different strategies will be analyzed. Value disciplines, generic strategies, and grand strategies will be analyzed to determine which is best for the success of Progressive.
Value Discipline Value discipline is the belief that a company must strategize while “delivering superior customer value through three value disciplines: operational excellence, customer intimacy and product leadership” (Pearce & Robinson, p.198). Value discipline is mostly important to valuing the customers that utilize the company. One discipline that is expressed is operation excellence. Operational excellence are strategies that focus on distribution of products and services. Companies who utilize this discipline main focus is to reduce overhead cost and reducing internal expenses to focus on efficiency and reliability (Pearce & Robinson, 2013). Another value discipline is customer intimacy. Customer intimacy formats products and services to meet the needs of the consumer utilizing the product. “Companies excelling in customer intimacy combine detailed customer knowledge with operational flexibility” (Pearce & Robinson, p.198). This process is used to help companies gain customer loyalty. The last value discipline is product leadership. Product leadership focuses on the producing a “continuous stream of state-of-the-art products and services” (Pearce & Robinson, p.199). This discipline has three challenges that are attained in order to reach the company’s
Value Discipline Value discipline is the belief that a company must strategize while “delivering superior customer value through three value disciplines: operational excellence, customer intimacy and product leadership” (Pearce & Robinson, p.198). Value discipline is mostly important to valuing the customers that utilize the company. One discipline that is expressed is operation excellence. Operational excellence are strategies that focus on distribution of products and services. Companies who utilize this discipline main focus is to reduce overhead cost and reducing internal expenses to focus on efficiency and reliability (Pearce & Robinson, 2013). Another value discipline is customer intimacy. Customer intimacy formats products and services to meet the needs of the consumer utilizing the product. “Companies excelling in customer intimacy combine detailed customer knowledge with operational flexibility” (Pearce & Robinson, p.198). This process is used to help companies gain customer loyalty. The last value discipline is product leadership. Product leadership focuses on the producing a “continuous stream of state-of-the-art products and services” (Pearce & Robinson, p.199). This discipline has three challenges that are attained in order to reach the company’s