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Strategic Management in

Different Business Context

Presented By:

Anupam Kumar

Reader,

School of Management Sciences,

Varanasi

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Strategic Management

• Strategy and strategic management varies in

different business contexts.

– The small business context

– The multinational context

– The manufacturing and service organization

context

– Strategy in public sector

– Strategy in Voluntary and not-for-profit sectors.

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Strategy: Small Business Context

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Strategy: Small Business Context

• Scope of operations are less

strategic and more planning

based.

• Unless the firm is a specialist in

the field, it would be under heavy

market pressures.

• Arranging resources & developing

competences may be a big

problem.

• Firm may not have a separate

strategy team.

• Owner is the most important

stakeholder.

Direction & Scope

Long Term

Advantage for Organization

Resources & Competences

Environment

Needs of Market

Stakeholder’s Expectations

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Strategy: Multinational Context

CORPORATE LEVEL BUSINESS LEVEL

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Strategy: Multinational Context

• Products and markets are diverse.

• The key strategic issues include:

– Aspects of structure and

control at the corporate level ,

– the relationships at the

various business units level,

– Allocation of resources among

the business units, and

– Coordination of operational

logistics across business units

and geographies.

Direction & Scope

Long Term

Advantage for Organization

Resources & Competences

Environment

Needs of Market

Stakeholder’s Expectations

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Strategy: Service Vs Manufacturing

• Competitive advantage in

service organizations is

much more related to the

extent to which customers

value less tangible features.

Direction & Scope

Long Term

Advantage for Organization

Resources & Competences

Environment

Needs of Market

Stakeholder’s Expectations

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Strategy: Service Vs Manufacturing

• For manufacturing

organizations, the physical

products is the central to

competitive strategy and

services are merely needed

to support the product.

Direction & Scope

Long Term

Advantage for Organization

Resources & Competences

Environment

Needs of Market

Stakeholder’s Expectations

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Strategy: Public Sector Context

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Strategy: Public Sector Context

• The most powerful stakeholder in

the case of public sector is the

government.

• Scope and direction is determined

by political rather than market

conditions.

• The competition is mainly for the

input of resources rather than

towards the market and

customers.

• Social issues and concerns are

more important environmental

factors rather than business sense.

Direction & Scope

Long Term

Advantage for Organization

Resources & Competences

Environment

Needs of Market

Stakeholder’s Expectations

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Strategy: Not-for-Profit Sector

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Strategy: Not-for-Profit Sector

• The values and ideologies

are central to strategy

development.

• There exists multiple source

of income and revenue.

• They are more susceptible to

lobbying and other political

influences.

Direction & Scope

Long Term

Advantage for Organization

Resources & Competences

Environment

Needs of Market

Stakeholder’s Expectations

13© Copyright 2013 Anupam Kumar