Learn (Exploring Corporate Strategy - by Gerry Johnson & Kevan Scholes)
Self Review for Group SALP assignment (Pg 10 & 11)
Strategy is the direction and scope of an organisation over the long term: which achieves advantage for the organisation through its configuration of resources within a changing environment, to meet the needs of markets and to fulfil stakeholder expectations.
Levels of strategy
3 levels:
1) Corporate strategy - overall purpose and scope of the organisation; may involve consideration of diversification and acquisition; influenced by the overall mission of the organisation.
2) Competitive or Business Unit Strategy - how to compete successfully in a particular market: the concerns are how advantage over competitors can be achieved; what new opportunities can be identified or created in markets; which products or services should be developed in which markets; and the extent to which these meet customer needs in such a way as to achieve the objectives of the organisation - profitability, market growth or measures of efficiency.
It is therefore very important that there is a clarity about the needs of customers and who competitors are for a particular SBU.
3) Operational strategies - which are concerned with how the component parts of the organisation in terms of resources, processes, people and their skills are pulled together to form a strategic architecture which will effectively deliver the overall strategic direction.
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Reading from the above, the context that could be applied to IKEA is:
Corporate Strategy - IKEA mission was to provide good-value home furnishings around the whole at prices that the majority of people were able to afford.
Business Unit Strategy - at IKEA, each store is a separate SBU; but realistically it may be that specific competitive strategies need to differ, perhaps by national geographic markets.
Operational strategies - in IKEA, it is crucial importance that design, store operations and sourcing operations dovetailed into higher-level decisions about product range and market entry.
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2 comments:
Fine, but why IKEA ?
IKEA because it's rather easy to apply what i have learnt in theory to IKEA concept.
For Pfizer, yes, if you had heard about ourlatest development, we're moving into business unit (BU) concept too. Our new corporate BU mission, unit's structure and objective will be announced too. We will apply it in our GSALP.
Thanks for your feedback.
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