Stragetic Management - an overview
INTRODUCTION:
Corporate Companies are finely structured with building blocks of Ideologies, innovations, objective oriented system and implementations. This finely built system is not only dependent on the above mentioned building blocks. In general, the development of a strategy by any corporate company is based on various factors which induces them to frame a Competent and winning strategy. We have to understand those basics through detailed analysis to know the inadequate descriptions for the development of corporate strategy decisions.
SIGNIFICANCE OF A STRATEGY
A Strategy is so vital for the survival and it is essential to have the correct ideology about framing a strategy in general or for a particular task. This very basic understanding gives the company the edge and the leverage to stay afloat in the business environment.
STRATEGIC MANAGEMENT
It is the process of managing the mix of goals and strategic pathways that serve to define what the organization wishes to be, where it’s going, when it wants to get there and how in general it is to get there. It also includes the process of monitoring and controlling the strategy of the organization.
THE MARKET AND DESCRIPTIONS:
When we discuss about strategy and its significance, the Strategy is projected and developed based on its place in known as "THE MARKET". The market is the ultimate place where every company competes or eliminates its competition to secure their place and cement it firmly.
MARKET DESCRIPTIONS:
Before getting into a detailed analysis of the market and market descriptions, we have to understand that the customers are directly the market. The companies should know who are your customers are and have to choose the right way to approach them. The strategy of a company is the path that leads them and market descriptions show them the right direction.
There are various segments in a Market Description that helps the companies establish a firm knowledge about their market. Sub segments of the Markets can be as follows:
* Range of customers targeted.
* Availability of their product.
* Demand for their product.
* What is the customers limit to afford the company’s product.
* The geographical location.
* Knowledge about the rival companies and their products in the same
* market.
* Resource allocation, customization of work force.
CORPORATE STRATEGIES
When a company has the market description and a strategy is formed based on it, its reliability on changing on a long term basis is debated. Since the market is changing periodically and will ever is changing based on the customer requirements and the edge for technical standards by competitors.
There are wide ranges of sequences where a product is outdated in a short period of time because of the changing customer requirements and a better version of the product being introduced and captures its present market.
There can be various scenarios where the Market descriptions can be inadequate for the companies’ corporate strategies which can be illustrated with relevant cases that would help us know the above said statement.
Some of the main reasons for the inadequacy in the market description may cause due to the following:
Companies objectives:-
On designing the objectives the main three things which is to be looked into is the Macro, Micro and the Internal environment. The macro environment deals with factors which influence externally to the company. The micro environment deals with the potters five forces (new entry threats, rivalry, substitute threats, supplier power, buyer power), and the internal environment deals with the factors internal to the company (strength/weakness, personal ambitions, shared values etc).
The company objective should exactly state what is to be achieved specifically by the company, the objective set should be in such a manner that the company should be able to determine how far is the objective to be achieved, the objective designed for the company should be realistic enough to achieve the objective.
The set objective should be having relevance to the staffs who are responsible for achieving them. And last is that it should be time bound, where the deadlines also need to be realistic. The inadequacy in the company may cause due to not plotting the proper company objective.
Target market:-
The target market in other words called the niche market, involves in breaking up of the market in different segments and focusing the marketing efforts on to one or few key division.
The niche market is the place where the promotion pricing and the distribution of the product becomes more cost effective. This makes available a focus on to the marketing strategy. Target marketing provides a focus to all of your marketing activities.
When looked into the Wimm-Bill-Dan case from the module, the company which was having a very good reputation in their home market, did not categorize their target market as they expanded in Europe and had poor returns on their investments, this was caused due to the misjudgment of the consumer’s reference, and the lack of studying in the pricing of their product.
Some of the most common segmentations of the market are the geographical, demographic and psycho graphic segmentation. Geographic segmentation divides the market place into different geographical units such as region, size of the metropolitan area, population density and climate.
Demographic segmentation is based on the Age, gender, family size, generation, income, occupation, education, ethnicity, nationality, religion and social class.
Psycho graphic segmentation categorizes customers according to their way of lifestyle. Activities, their interests, and their opinions (AIO) surveying is one tool for measuring the lifestyle.
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