A Level Business: When a company is composed of several businesses, business units or companies sometimes choose to develop strategic plans for each of these.
In the book of business planning 12 define key strategic decisions: Determining the areas of business focus, which markets targeted by the product. And the type of product or service that the organization offered in the areas of business you have selected. Once established in a business area, made the business decision approach, companies can follow one of the following generic areas of development:
1. Internal growth: Consists of market penetration, product development, diversification. It is based on experience gained.
2. Conversion: There are alternatives that provide inter-organizational strength. They are based on a mutually beneficial and synergistic strengths and resources. These are strategic alliances.
3. Acquisitions: In mature markets the acquisition is a way to increase the participation of the company, to gain more power and growth, reduction of competition. This strategy serves to remove barriers to entry. So instead of developing products, you choose to purchase products “winners” and thus reduces the risk.
4. 5 The Business Level Strategy This strategy includes the overall competitive theme chosen by a company to give emphasis to the way it is positioned in the market to gain a competitive advantage and positioning the different strategies that can be used in different environments industrialists. The foundation of business-level strategy is the definition of the business process that involves decisions about
1) customer needs, or what is going to meet
It is always important to know the needs of customers, but more importantly, first properly identify who we want them to be our customers.
One of the biggest challenges encountered by organizations today is to properly understand the requirements, needs and concerns of customers, in order to create or generate successful products and services (and which ensure the permanence in a market).
The customer needs are diverse and it is important that we all understand that if we want to improve or create value, users evaluate the performance of our products and services through its features. It is therefore important to analyze these characteristics for each of our products and services:
What are the characteristics (eg a restaurant):
1) Physical determine the quality of my product or service (P / S)? • Smell, size, focus, colors, uniforms, decorations, etc..
2) In determining volume quantity and the quality of my P / S? • Lighting, lots on dishes, menu variety. 3) cost, price and value that determine the quality of my P / S? • Cost of dinner, drinks or services. 4) The health and safety? • Zero dust, zero waste, clean vegetables, fat-free dishes, etc..
5) In service and maintenance? • Short attention, change settings, gifts at the end, and so on.
6) In respect for the environment? • Rational use of water (treatment plant), recycling of garbage, etc..
Sure to review our products and services and their quality characteristics (from the customer perspective), we will find many areas of opportunity and improvement in our organization (we do not do things and we should, and things we do but are not constant).
This information on the quality characteristics can be performed by members of the company or institution, but it is best that the needs, concerns and requirements come directly from the customer’s voice. 2) groups of customers, or who will be satisfied, and Here, then how important is to define in advance Who are our customers really want?, To not make the common mistake of interviewing to be. The recommendation is that the definition of customer information is very precise and specific, that is, market talk of micro segments, rather than the whole market in general (my clients are women of a certain age, at a certain time and using the restaurant to coffee, etc.)..
3) distinctive abilities, or how it will meet customer needs. chap. differential q has the company in a management of resources, compared with competitors. In this spring’s competitive advantages, q are in the mind of the customer and the company are generated x x through distinctive skills. These guide the pol are diversification and the pattern of decision on priorities in the allocation of resources.
3. The company’s competitiveness depends on the ability to build distinctive skills, at lower cost and faster competitors q, pa launch prod. q represent a break with habitulamente available in the market. pa each company must decide which business unit will be the strategic vector (the basic impulse), who wants the company’s long-term pa that business unit.
These three decisions are at the core of the selection of business-level strategy and providing the source of a company’s competitive advantage over rivals and determine how to compete in a business or industry.