STRATEGY FORMULATION
articulates the long term aspiration of the organization outlining what it aims to become in the future
vision statement
defines the organization's purpose and primary objectives focusing on its core activities and target audience
mission statement
core principles and beliefs that guide the organizations behavior and decision making
values
specific measurable goals that a company aims to achieve within a certain time frame to fulfill its vision and mission
strategic objectives
broader targets that guide the company's strategic planning and decision making
goals
formed at the top of the company typically focused on long term objectives but may influence near term activities
corporate strategy
defined at the segment and emphasis products or services and attaining competitive advantage
business unit strategy
designs the approach for functions or departments, how marketing, supply chain, engineering should run their departments
functional strategy
the overall strategy guiding the company's portfolio of businesses and resource allocation it answers the question of which industries or markets to company should compete in
corporate-level strategy
strategy for competing within a specific industry or market. it focuses on how to gain a competitive advantage in that market.
business-level strategy
strategies related to specific functions or departments within the organization, such as marketing, operations, or finance
functional-level strategy
achieving the lowest operational cost in the industry to offer products or services at a lower price than competitors
cost leadership
offering unique products or services that stand out from competitors allowing the premium pricing
differentiation
targeting a specific market segment with tailored strategies
focus
this strategy keep costs low in order to either offer customers lower prices for widen profit margins
low cost
it targets mass markets using economies of scale high capacity utilization and efficient resource management to keep costs very low
cost leadership
it targets niche markets. smaller scale of production can make gaining cost advantages more challenging but can be done by keeping things simple and avoiding r&d costs
cost focus