Strategic Insights for Business Growth and Competitive Advantage

CAPSIM PRESENTATION NAME INSTITUTION COURSE

Business Strategy  Business strategy are the tactic actions an organization implements to positively impact both the corporation and its stakeholders and obtain an edge over competitors. The strategy must be in existence before the production and provision of goods and services for the betterment of business operations.  The success of an organization is positively correlated with the business plan for it enables the leaders to set objectives that are after countering stiff competition from its rivals.. It through the business plan that elements of business such as price, suppliers, resource allocation, and hiring of employees is decided upon.

 Corporate-level strategy was the choice of the firm.  A corporate-level strategy is a long-term plan created by the top officials of the management that focuses on all aspects of the business organization such that success is met through proper coordination.  It is a strategy that simply lays the foundation of the business with aspects such as stability, expansion, mergers and acquisitions, product differentiation and integration, new investment sectors among others are decided upon.

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

 Collaboration between departments within the corporate case is employed through the corporate level strategy.  These plans help the corporate executives in diversified firm to increase their competitive advantage over their rivals.  The tactics at the business unit level are necessary for the purposes of maintaining or losing the competitive advantage.  Organizations must have a strategic position within their sector in order to achieve competitive advantage.

 Top management is the body at the corporate strategic level in charge of making business decisions projected to have positive outcome. But regarding the general managers , theirs is to make insightful retribution regarding business-level strategy.  The Corporate-level strategy tends to expound on business issues such as the start of new product lines, business growth and expansion, new investments, viability choices among others.  In regard to Business-level strategies, the focus is mainly on strengthening the business in order to counter competition from its rivals.

 The significance of Business strategy for growth in an organization is to position the business in the market.  Its through the Business strategies that a firm registers increased efficiency, accountability in terms of cost, reduction of risks resulting into the achievement of its goals as well as attaining on its vision and mission.  It is important to note that factors such as the monetary and non-monetary goals of an organization are crucial in developing a successful business strategy.  To a larger extent SWOT ( strength, opportunity, weakness, and threat) analysis of an organization majorly contributes on the development of a good business strategy.

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

Diagnosis of Successes and Failures  Among the main reasons why small businesses fail is lack of capital , having an inadequate management team, poor infrastructure or business model, and poor marketing initiatives.  Indeed business success is dependent upon an appropriate amount of investment but other aspects such as talent, proper tactics, determination and commitment should not be overlooked.  Strategic focus, people, operations, marketing, and finances are the main success factors.

• The major factors resulting to the company’s failure include; 1. Substandard cash flow management 2. Losing track of the finances 3. Insufficient strategies and poor planning 4. Poor leadership 5. Overreliance of few big customers 6. Inadequate resources

 The overall goal of the visioning component is to position the high-level inclination of the business firm such as its vision, mission, objectives and the corporate values. The ability to visualize the organization’s future is an important aspect of corporate leadership that should not be overlooked.  The basis for objective setting is the unfolding of the visioning aspects brought about and their transition into high-level objectives for the organization, usually spreading over three to five years in length.  The Strategic goals are the organization’s big-picture purposes for they help in the definition of what the company will do to attempt to realize its mission.

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

 Resource allocation involves planning, managing, and distribution of resources in a way that facilitates the achievement of an organization’s strategic objectives.  Leaders must decide upon on how to locate these resources to the various businesses and business units in order to strengthen as a whole than in parts and thus maximize the value of the entire company.  Prioritization, or determining strategic compromises, is quite a difficult aspect of company strategy because it is not always possible to take advantage of all available prospects, and the presence of some level of risks in every business decision made.

Functional Strategies and Tactics Product Market • Product marketing is simply the strategic advertising and selling of a product to a buyer/customer. It is the link between product creation and multiplied market awareness. • Product-oriented marketing comprises several teams, not limited to product, marketing, sales, and customer support, for the improvement of the product and ensuring that it meets and satisfies the expectations of the marketed group.

Production and Operations  An operations strategy is an assembly of decisions made by an organization concerning the production and delivery of its goods.  Companies may take each step toward manufacturing or delivering a product as an operation, and all decisions regarding the various operations as the operations strategy.  Operations strategy acts as a leading principle used to plan, analyze, and carry out the firm operations. Operations strategies help organizations to identify and implement cost-effective processes for creating and distributing products and services.

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

 Operations resources encompasses a broad variety of organization resources like equipment, individuals, accompaniments, vendors, and technology. Operations managers supervise the scope of a firm’s operations resources and monitor how these resources facilitate products or services.  Market requirements refer to business goals and operational plans on how to achieve the market needs. Market requirements are important to any operations strategy as they establish the cost, quality, and formation of product or service in order to achieve the customer expectations.

Finance • Finance strategy is the process that is based on well defined visions, strategies and guidelines for the development of the planned finance function. • Focusing on prospects that generate value requires building on discernment from the business surroundings, shareholder expectations, and own performance & capacities.

 A finance strategy merges strategic and financial planning. The final outcome is a functional guideline that evaluates present assets, expenses, and budgets and fix them with the objectives of the business.  It confirms a strategy to hold up organizational objectives and goals for growth and innovation amongst shifting and frequently changeable business conditions.  Setting priorities, positioning trade-off choices, and reducing change costs are the elements of a good financial plan.

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

 Profit creation for the organization and maintaining a sufficient return on investment (ROI) are the objectives of strategic financial management.  Business financial aims, the execution of financial controls, and financial decision- making are used to manage finances.  Among the topics covered under financial strategy are financial resources, accounting operations ,calculating structure analysis and cost structure analysis.

Pro Forma Strategy and Financial Projections  A financial projection whose foundation is pro-forma financial statements is refereed to as a pro- forma forecast.  The objective of the pro-forma forecast is to demonstrate how a company's financial situation would improve in case of an advantageous change.  The rules of generally accepted accounting principles (GAAP) are not applicable to to pro-forma predictions.  A pro forma financial statement utilizes hypothetic information or assumptions about potential values to predict performance over a future period.

 Strategic positioning is a business strategy where a company differentiates itself from its rivals by creating better value for its customers . This helps in the creation of a competitive advantage over other similar companies and, in general, increasing company profit.  Regardless of the industry, attracting customers' attention is crucial for lasting success and growth of any business. This could be a major area of concentration for the product, marketing, and sales teams, from startups aiming to break into a market to established businesses trying to outmatch competitors.  strategic positioning is a good strategy that can help capture customer attention resulting into increased profits.

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

 Strategic positioning is a business tactic where an organization distinguishes itself from competitors through the creation of better value for its clients.  This results into creation of competitive advantage over other similar companies thus registering better profits.  Traditional sales strategies such as improved quality of the product and creation of more time-efficient processes can work well adjacent to strategic positioning.

Cost Leadership  Cost leadership is a business technique of developing the lowest price point possible for a product within an industry. The lower price distinguishes a company from its rivals and this may lead into capturing more customers. As a result the other organizations may eventually adjust their prices accordingly for the maintenance of competitive pricing.  When applying cost leadership, it's necessary to have one of the lowest costs of production in the industry. If the cost that the organization pays to create the product is lower than average, that may help in setting a lower price point for customers while still retaining returns.

Differentiation  The business strategy called differentiation help in the development of a premium good or service and charge more for it. This creates distinctiveness, in some ways, thus contrasting the cost leadership strategy.  Marketing that targets clients who are willing to pay more for what they believe to better quality or experience involves this strategy. This could encompass enhanced product quality, first-rate customer service, or a higher social prestige interconnected to the purchase.  A business may combine marketing strategies with product development advancements to implement differentiation..

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

Focus on Niche Markets  Another example of strategic positioning is finding a niche market that rivals are not interested in and offering a service or a product that is specifically for the customers in that market.  This process requires market research in order to gain knowledge on various potential niche markets and the product or marketing preferences of consumers in such markets for proper allocation and utilization of resources.  moreover, one can decide on whether cost leadership strategy or differentiation strategy would be the most effective when drawing on a specific niche market, and then combine the two strategies accordingly.

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

Financial Projections for the Next 3 Years  To forecast is to predict future sales using the available data. Accurate prediction in Capsim enables players to develop the best business decisions possible and to make large returns without any emergency loans.  Accurate forecast requires accurate data. One can make the estimate during the second year of operations by analyzing the first years operations.  The best information one can acquire usually comes from the business’s performance during the first year of operations. This is because market usually grows about 10% on low-tech products and about 20% on high-tech products, and one may assume that the business will grow by about 15%.  So, its about looking at what one sold last year and adding 15% to it as a starting point. As other teams add products to their inventory, prediction becomes more difficult, and this calls for a change in strategy.

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

Forecasting Methods Market Share Approach Market share × Total industry unit demand × (1 + next year’s growth rate) Customer-Survey Approach Product’s December customer survey ÷ total customer survey • Two forecasts are also needed: • Best case forecast – Plan for the best-case scenario (mitigate the risk of stock out) • Worst case forecast – Plan for the worst-case scenario (mitigate the risk of emergency loans)

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

 Since the majority of teams will only have one or two items, predicting for the first one or two rounds its achievable and the market share technique will be successful.  However, some teams may have four or five products by the fourth round. It is rational to suppose that bit of the market share will go to the new items.  You can no longer count on each of your goods to grow at a 15% pace going forward. You need to analyze each product's performance on the market. At this moment, the customer survey strategy performs better.

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

Strategy for the Next 3 Years  Having a 3 Year Strategic Plan is convenient to make sure the company has a long-term roadmap to achieve success . It helps to clarifying the companies vision and mission, and ensures that all efforts are parallel towards achieving its objectives. The strategies include; 1. Define clear examples of your focus areas 2. Think about the goals that could fall under that focus area 3. Set yourself measurable targets (KPIs) to handle the objective 4. Implement related projects to achieve the set KPIs 5. Utilize Cascade Strategy Execution Platform to see faster results from your strategy

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

CAPSIM PRESENTATION_2

Related Documents