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SWOT Analysis & Levels of Strategy

SWOT Analysis & Levels of Strategy. Homework. Richview Mission Statements What are some common themes?. SWOT Analysis. Starbuck’s New Brew http://www.cbsnews.com/videos/starbucks-new-everyday-brew / Let’s do a SWOT Analysis as a class. SWOT Analysis. Hudson’s Bay Example

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SWOT Analysis & Levels of Strategy

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  1. SWOT Analysis &Levels of Strategy

  2. Homework • Richview Mission Statements • What are some common themes?

  3. SWOT Analysis • Starbuck’s New Brew • http://www.cbsnews.com/videos/starbucks-new-everyday-brew/ • Let’s do a SWOT Analysis as a class

  4. SWOT Analysis • Hudson’s Bay Example • “From Fur to Fendi

  5. The 3 Levels of Strategy: • Corporate Level Strategy • Business-Unit Level Strategy • Functional Level Strategy

  6. Corporate Level Strategy • Highest level of decision making • Deals with the overall objective of the firm • Forms the trunk of the strategic decision tree • Market you should compete in • Less concrete – more value oriented • Corporate level strategy is concerned with: 1.Reach 4.Management Practices 2.Competitive Contact 3.Managing Activities and Business interrelationships

  7. Corporate Level New York Knicks • Owner : James Dolan • Businessman, Entrepreneur, Executive Chairman “The Madison Square Garden Company” • Mission : To Make Money

  8. Fast Five • Corporate Level: • Chris Morgan • Script writer of the film Fast Five • Writer and Producer

  9. Business-Unit Level • Second level of the pyramid. • Businesses levels strategies are to secure businesses (themselves) an identity and position in the market. • Business level goals are: → Increase the business value for the corporate and stakeholders. → Increase the brand awareness and value perceived by the customers.

  10. Business Level • New York Knicks • General manager Steve Mills • Oversees all Basketball Operations

  11. Fast Five • Business Level: • Amanda Lewis • Executive Producer who manages finances and ensures people are being paid

  12. Strategic Business Unit • A Strategic Business Unit (SBU) is a major business area that operates with some autonomy. • Focused towards a set of products and are responsible for every strategy to be taken for those particular products.

  13. Example: • Apple’s iTunes! • iTunes doesn't just, it is a gateway to the iTunes Store where people can purchase music, purchase eBooks, and download applications. • It also runs on Windows, so you don’t need to own an Apple device to use it, reaches out to different customers. • Although iTunes is free, it has generated billions of dollars in revenue.

  14. Functional level • This is the third (bottom level) and final level of the pyramid. • Also known as “Operational Level” • Level of the operating divisions and departments. • Primarily concerned with successfully implementing the strategic decisions made at pervious levels. • This level of strategy is extremely significant in shaping the success of other strategies.

  15. Functional Level • New York Knicks • Head Coach – Mike Woodson • To draft/acquire players, to win games, to get fans to attend games

  16. Fast Five • Functional Level: • Justin Lin • Director  makes the movie • Writer, Producer, Director

  17. Advantages & Disadvantages • A firm that successfully implements all 3 business-level strategies should be in a better position to: • Adapt quickly to any new environmental changes • Learn new skills and technologies more quickly • Effectively leverage its core competencies while competing against its rivals • Successfully implementing the strategies will also lead to above-average returns for the firm. • Business-level strategies require the organization to always remain vigilant regarding the needs of customers and the potential encroachment of competition. Today’s highly competitive market can often fail companies to do so and lead them to: • Lose sight in changing customers’ tastes. • Be easily imitated by rival competition • Frequently reduce/raise pricing on products • In order to avoid these disadvantages, a business should always remain up-to-date with new technologies to retain the current customer base and work towards reaching new customers as well.

  18. Interconnection • All strategies have to be in complete harmonization with each other since the success of one level is inseparably linked to the other. • The impact of the node on the others is judged by the flexibility of their relationship which further depends upon the success of the adopted business framework.

  19. Summary • Each level of strategy is a chain • Corporate : Covers full enterprise • Business : Covers the (SBU) • Strategic Business Unit (SBU) : One division of a business • Functional : Covers a specific area of operations in a division

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