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CHAPTER
4
BUSINESS-LEVEL STRATEGY
Chapter 2
The External Environment
Chapter 3
The Internal Organization
Vision
Mission
Chapter 4
Business-Level Strategy
Chapter 5
Competitive Rivalry and Dynamics
Chapter 6
Corporate-Level Strategy
Chapter 7
Merger and Acquisition Strategy
Chapter 8
International Strategy
Chapter 9
Cooperative Strategy
Strategy formulation
Strategic Competitiveness
Above-Average Returns
Chapter 10
Corporate Governance
Chapter 11
Organizational Structure and Controls
Chapter 12
Strategic Leadership
Chapter 13
Strategic Entrepreneurship
Strategy implementation
Analysis
Strategy
Performance
The Strategic Management Process
A-S-P model
Chapter 4:
BUSINESS-LEVEL STRATEGY
Chapter overview:
Defining business-level strategy
Customers: their relationship with business-level strategies
The purpose of a business-level strategy
Types of business-level strategies (link with Value chain and 5
forces)
3
Introduction
Strategy – increasingly important to a firm’s success and
concerned with making choices among two or more alternatives.
Choices dictated by
External environment
Internal resources, capabilities and core competencies
Examples from gaming industry (King Digital Entertainment vs.
EA)
4
Introduction
Business level-strategy – integrated and coordinated set of
commitments and actions the firm uses to gain a competitive
advantage by exploiting core competencies in specific product
markets
Generic strategy – a strategy that can be used by any
organization competing in any industry
5
Introduction
6
A firm must use a Business Level Strategy
It is not necessary to use all the corporate level strategies,
acquisition, restructuring, international…
From the dry cleaner to the multinational corporation – a firm
must choose at least one business-level strategy
The business level strategy is the core strategy - the strategy
that the firm forms to describe how it intends to compete in the
product market
Introduction
7
In terms of customers, when selecting a business-level strategy
the firm determines:
who will be served,
what needs those target customers have that it will satisfy, and
how those needs will be satisfied
Customers: Their Relationship with Business-Level Strategies
8
8
Strategic competitiveness results when firm can satisfy
customers by using its competitive advantages
Returns earned are the lifeblood of firm
Most successful companies satisfy current customers and/or
meet needs of new customers
Customers: Their Relationship with Business-Level Strategies
9
Five components in customer relationships
1. Effectively managing relationships with customers
Deliver superior value
Strong interactive relationships is foundation
2. Reach, richness and affiliation
Access and connection to customers
Depth and detail of two-way flow of information between firm
and customer
Facilitating useful interactions with customers – viewing the
world from the customer’s eyes
9
Customers: Their Relationship with Business-Level Strategies
10
Five components in customer relationships
3. Who: Determining the customers to serve
Market segmentation
Dividing customers into groups based on differences in needs
Process used to cluster people with similar needs into individual
and identifiable groups
For example, consumer and industrial markets
10
11
Customers: Their Relationship with Business-Level Strategies
12
Five components of customer relationships
4. What: Determining which customer needs to satisfy
What = Needs
Related to a product’s benefits and features
Must anticipate and be prepared: (i.e., High-quality? Low
price?)
Translate into features and performance capabilities of products
5. How: Determining core competencies necessary to satisfy
customer needs
Core competencies: resources and capabilities that serve as
source of competitive advantage for firm over its rivals
How = core competencies
12
Customers: Their Relationship with Business-Level Strategies
13
“All organizations must use their capabilities and core
competencies (the How?) to satisfy the needs (the What?) of the
target group of customers (the Who?) the firm has chosen to
serve”
13
Purpose of Business-Level Strategies
Purpose: To create differences between position of a firm and
its competitors
Firm must make a deliberate choice to
Perform activities differently
Perform different activities
Southwest Airlines principles of strategy
Six areas of strategic intent:
limited passenger service
frequent, reliable departures
lean, highly productive ground and gate crews
high aircraft utilization with few aircraft models
very low ticket prices
short-haul, point-to-point routes between mid-sized cities and
secondary airports
14
Purpose of Business-Level Strategies
Purpose: To create differences between position of a firm and
its competitors
Firm must make a deliberate choice to
Perform activities differently
Perform different activities
Activity map exemplifies a firm’s activities
How they are integrated
Rayanair e.g. limited passengers service (no meals, no seat
assignment and no baggage transfers) form a cluster for a
strategic theme.
Activity Fit is key to the sustainability of competitive
advantage
15
16
Taken from: Hitt, M. A., Ireland, R. D., and Hoskinsson R. E.
(2017). Strategic management: Competitiveness and
globalization. Cengage Learning. 12th edition, page 126-127
Types of Business-Level Strategies
Two types of competitive advantage firms must choose between
Cost (Are we LOWER than others?)
Uniqueness (Are we DIFFERENT? How?)
Two types of ‘competitive scope’ firms must choose between
Broad target
Narrow target
These combine to yield 5 different business-level strategies
17
18
Competitive
Scope
Competitive Advantage
Cost
Uniqueness
Broad
Target
Narrow
Target
Cost Leadership
Differentiation
Focused Cost Leadership
Focused Differentiation
Integrated Cost Leadership/ Differentiation
Types of Business-Level Strategies
Cost Leadership
Competitive advantage:
The low-cost leader and operates with margins greater than
competitors
Competitive scope: Broad
Integrated set of actions designed to produce or deliver goods or
services with features that are acceptable to customers at the
lowest cost, relative to competitors
Standardized goods
Continuously reduce costs of value chain activities
Inbound/outbound logistics account for significant cost
Low-cost position is a valuable defense against rivals
19
Types of Business-Level Strategies
Cost leaders are in a position to
Absorb supplier price increases and relationship demands
Force suppliers to hold down their prices
Continuously improving levels of efficiency and cost reduction
Can be difficult to replicate and
Serve as significant entry barriers to potential competitors
Cost leaders hold an attractive position in terms of product
substitutes, with the flexibility to lower prices to retain
customers
Examples: TK Maxx, Big Lots Inc., Wal-Mart
20
21
Highly efficient systems to link suppliers’ products with the
firm’s production processes
Use of economies of scale to reduce production costs
Construction of efficient-scale production facilities
A delivery schedule that reduces costs
Selection of low-cost transportation carriers
A small, highly trained sales force
Products priced so as to generate significant sales volume
Efficient and proper product
Installations in order
to reduce the
frequency
and severity
of
recalls
Systems and procedures to find the
lowest-cost (with acceptable quality)
products to purchase as raw materials
Frequent evaluation
processes to monitor
suppliers’ performances
Easy-to-use manufacturing
technologies
Investments in technologies in order
to reduce costs associated with a firm’s
manufacturing processes
Consistent policies
to reduce turnover costs
Cost-effective
management
information systems
Intense and effective training
programs to improve worker
efficiency and effectiveness
Simplified
planning practices to
reduce planning costs
Relatively few
managerial layers in order
to reduce overhead costs
MARGIN
MARGIN
Inbound logistics
Operations
Outbound logistics
Marketing
and Sales
Service
Infrastructure
HRM
Technology
Development
Procurement
Types of Business-Level Strategies
Cost Leadership in relation to the 5 Forces:
Rivalry against existing competitors – Rivals hesitate to
compete on the basis of price (in particular against a company
which is well established and able to produce its private-label
products)
Bargaining Power of Buyers (Customers) – Customers do not
want to force a leader to lower the price much as this will force
other competitors to exit the market leaving the leader almost
alone controlling selling price
Bargaining Power of Suppliers – As long as the company can
keep effective margins greater than those of competitors, it can
absorb suppliers’ price increase – big players like Wal-Mart
may have a power over its suppliers
Potential Entrants – They need to be able to operate at average
return levels till they are able to get into a cost leader position
Product Substitutes – The company needs to be willing to offer
more features to the product/service, or reduce prices more –
while still being able to operate profitably
22
Types of Business-Level Strategies
Competitive risks of the cost leadership strategy
There is a limit to cost reduction
Focus on cost may cause the firm to overlook important
customer preferences
Imitation
23
Types of Business-Level Strategies
Differentiation
Competitive advantage: Differentiation
Competitive scope: Broad
Integrated set of actions designed by a firm to produce or
deliver goods or services at an acceptable cost that customers
perceive as being different in ways that are important to them
Target customers perceive product value
Customized products – differentiating on as many features as
possible
Examples: Apple’s iPod, Nivea deodorants, iPhone SE???
24
25
Superior
handling of
incoming raw
materials so as
to minimize
damage and
to improve the
quality of the
final product
Consistent manufacturing
of attractive
products
Rapid responses
to customers’
unique
manufacturing
specifications
Accurate and
responsive
order-
processing
procedures
Rapid and
timely product
deliveries
to customers
Extensive
granting of
credit buying
arrangements
for customers
Extensive
personal
relationships
with buyers
and suppliers
Extensive buyer train-
ing to assure high-
quality product
installations
Complete
field
stocking
of repla-
cement
parts
Systems and procedures used
to find the highest-quality
raw materials
Purchase of highest-quality
replacement parts
Strong capability in
basic research
Investments in technologies that will
allow the firm to produce highly
differentiated products
Compensation programs
intended to encourage worker
creativity and productivity
Highly developed information
systems to better understand
customers’ purchasing preferences
Somewhat extensive use of
subjective rather than
objective performance measures
A company-wide emphasis on
the importance of producing
high-quality products
MARGIN
MARGIN
Inbound logistics
Operations
Outbound logistics
Marketing
and Sales
Service
Infrastructure
HRM
Technology
Development
Procurement
Superior
personal
training
Types of Business-Level Strategies
Differentiation in relation to the 5 Forces:
Rivalry against existing competitors
Customers are loyal purchasers of differentiated products
i.e., Bose (electrical products-Headset)
Bargaining Power of Buyers (Customers)
Inverse relationship between loyalty/product: As loyalty
increases, price sensitivity decreases
i.e., Callaway golf clubs
Bargaining Power of Suppliers
Provide high quality components, driving up firm’s costs
Cost may be passed on to customer
Potential Entrants
Substantial barriers (see above) and would require significant
resource investment
Product Substitutes
Customer loyalty effectively positions firm against product
substitutes
26
Types of Business-Level Strategies
Competitive risks of the differentiation strategy
Customers determine that the cost of differentiation is too great
The means of differentiation may cease to provide value for
which customers are willing to pay
Experience can narrow customers’ perceptions of the value of a
product’s differentiated features
Counterfeiting/copying
27
Types of Business-Level Strategies
There are two “Focus” strategies
In general, the firms’ core competencies used to serve the need
of a particular industry segment or niche to the exclusion of
others.
May lack resources to compete in the broader market
May be able to more effectively serve a narrow market segment
than larger industry-wide competitors
Firms may direct resources to certain value chain activities to
build competitive advantage
Large firms may overlook small niches
28
Types of Business-Level Strategies
Focus strategy examples
Buyer groups
Youths/senior citizens
Product line segments
Professional painter groups
Geographic markets
West vs. East coast
29
Types of Business-Level Strategies
Focused Cost Leadership
Competitive advantage: Low-cost
Competitive scope: Narrow industry segment
Focused Differentiation
Competitive advantage: Differentiation
Competitive scope: Narrow industry segment
i.e., in the outdoor recreation business a firm that caters to fly
fishing is following a focused differentiation strategy (as
opposed to discount stores that carry general fishing gear)
High quality equipment
Knowledgeable personnel
Guided tours
Fly tying classes
30
Types of Business-Level Strategies
Risks of using “Focus” strategies
A competitor may be able to focus on a more narrowly defined
competitive segment and "outfocus” the focuser
A company competing on an industry-wide basis may decide
that the market segment served by the focus strategy firm is
attractive and worthy of competitive pursuit
Customer needs within a narrow competitive segment may
become more similar to those of industry-wide customers as a
whole
31
Types of Business-Level Strategies
Integrated Cost Leadership/Differentiation
Efficiently produce products with differentiated attributes
Efficiency: Sources of low cost
Differentiation: Source of unique value
Can adapt to new technology and rapid changes in external
environment
Simultaneously concentrate on TWO sources of competitive
advantage: cost and differentiation – consequently…
…must be competent in many of the primary and support
activities
Three sources of flexibility useful for this strategy
32
Types of Business-Level Strategies
Three flexible sources include
Flexible manufacturing systems (FMS)
Computer controlled process used to produce a variety of
products in moderate, flexible quantities with a minimum of
manual intervention
Goal: eliminate ‘low cost vs. product variety, tradeoff inherent
in traditional manufacturing technologies
Information networks
Using technology to link suppliers, distributors and customers
Total Quality Management (TQM) systems
Emphasizes firm’s total commitment to the customer and
continuous improvement of every process through data-driven,
problem-solving approaches based on empowering employees
33
Types of Business-Level Strategies
Competitive Risks of Integrated Strategies
Although becoming more popular the RISK is getting ‘stuck in
the middle’
Cost structure is not low enough for attractive pricing of
products and products not sufficiently differentiated to create
value for target customer – therefore, fail to successfully
implement either low cost or differentiation strategy
Result: Don’t earn above-average returns
34
35
(Student Name)
Date of Encounter:
Preceptor/Clinical Site:
Clinical Instructor:
Soap Note # Main Diagnosis ( Exp: Soap Note #3 DX:
Hypertension)
PATIENT INFORMATION
Name: Mr. DT
Age: 68-year-old
Gender at Birth: Male
Gender Identity: Male
Source: Patient
Allergies: PCN, Iodine
Current Medications:
· Atorvastatin tab 20 mg, 1-tab PO at bedtime
· ASA 81mg po daily
· Multi-Vitamin Centrum Silver
PMH: Hypercholesterolemia
Immunizations: Influenza last 2018-year, tetanus, and hepatitis
A and B 4 years ago.
Preventive Care: Coloscopy 5 years ago (Negative)
Surgical History: Appendectomy 47 years ago.
Family History: Father- died 81 does not report information
Mother-alive, 88 years old, Diabetes Mellitus,
HTN
Daughter-alive, 34 years old, healthy
Social History: No smoking history or illicit drug use,
occasional alcoholic beverage consumption on social
celebrations. Retired, widow, he lives alone.
Sexual Orientation: Straight
Nutrition History: Diets off and on, Does not each seafood
Subjective Data:
Chief Complaint: “headaches” that started two weeks ago
Symptom analysis/HPI:
The patient is 65 years old male who complaining of episodes of
headaches and on 3 different occasions blood pressure was
measured, which was high (159/100, 158/98 and 160/100
respectively). Patient noticed the problem started two weeks ago
and sometimes it is accompanied by dizziness. He states that he
has been under stress in his workplace for the last month.
Patient denies chest pain, palpitation, shortness of breath,
nausea or vomiting.
Review of Systems (ROS)
CONSTITUTIONAL: Denies fever or chills. Denies weakness or
weight loss. NEUROLOGIC: Headache and dizziness as
describe above. Denies changes in LOC. Denies history of
tremors or seizures.
HEENT: HEAD: Denies any head injury, or change in LOC.
Eyes: Denies any changes in vision, diplopia or blurred vision.
Ear: Denies pain in the ears. Denies loss of hearing or drainage.
Nose: Denies nasal drainage, congestion. THROAT: Denies
throat or neck pain, hoarseness, difficulty swallowing.
RESPIRATORY: Patient denies shortness of breath, cough or
hemoptysis.
CARDIOVASCULAR: No chest pain, tachycardia. No orthopnea
or paroxysmal nocturnal
dyspnea.
GASTROINTESTINAL: Denies abdominal pain or discomfort.
Denies flatulence, nausea, vomiting or
diarrhea.
GENITOURINARY: Denies hematuria, dysuria or change in
urinary frequency. Denies difficulty starting/stopping stream of
urine or incontinence.
MUSCULOSKELETAL: Denies falls or pain. Denies hearing a
clicking or snapping sound.
SKIN: No change of coloration such as cyanosis or jaundice, no
rashes or pruritus.
Objective Data:
VITAL SIGNS: Temperature: 98.5 °F, Pulse: 87, BP: 159/92
mmhg, RR 20, PO2-98% on room air, Ht- 6’4”, Wt 200 lb, BMI
25. Report pain 2/10.
GENERAL APPREARANCE: The patient is alert and oriented x
3. No acute distress noted. NEUROLOGIC: Alert, CNII-XII
grossly intact, oriented to person, place, and time. Sensation
intact to bilateral upper and lower extremities. Bilateral UE/LE
strength 5/5.
HEENT: Head: Normocephalic, atraumatic, symmetric, non-
tender. Maxillary sinuses no tenderness. Eyes: No conjunctival
injection, no icterus, visual acuity and extraocular eye
movements intact. No nystagmus noted. Ears: Bilateral canals
patent without erythema, edema, or exudate. Bilateral tympanic
membranes intact, pearly gray with sharp cone of light.
Maxillary sinuses no tenderness. Nasal mucosa moist without
bleeding. Oral mucosa moist without lesions,. Lids non-
remarkable and appropriate for race.
Neck: supple without cervical lymphadenopathy, no jugular vein
distention, no thyroid swelling or masses.
CARDIOVASCULAR: S1S2, regular rate and rhythm, no
murmur or gallop noted. Capillary refill < 2 sec.
RESPIRATORY: No dyspnea or use of accessory muscles
observed. No egophony, whispered pectoriloquy or tactile
fremitus on palpation. Breath sounds presents and clear
bilaterally on auscultation.
GASTROINTESTINAL: No mass or hernia observed. Upon
auscultation, bowel sounds present in all four quadrants, no
bruits over renal and aorta arteries. Abdomen soft non-tender,
no guarding, no rebound no distention or organomegaly noted
on palpation
MUSKULOSKELETAL: No pain to palpation. Active and
passive ROM within normal limits, no stiffness.
INTEGUMENTARY: intact, no lesions or rashes, no cyanosis or
jaundice.
ASSESSMENT:
Main Diagnosis
Essential (Primary) Hypertension (ICD10 I10): Given the
symptoms and high blood pressure (156/92 mmhg), classified as
stage 2. Once the organic cause of hypertension has been ruled
out, such as renal, adrenal or thyroid, this diagnosis is
confirmed (Codina Leik, 2015). Diagnosis is based on the
clinical evaluation through history, physical examination, and
routine laboratory tests to assess risk factors, reveal identifiable
causes and detect target-organ damage, including evidence of
cardiovascular disease (Domino et al,. 2017).
Differential diagnosis:
· Renal artery stenosis (ICD10 I70.1)
· Chronic kidney disease (ICD10 I12.9)
· Hyperthyroidism (ICD10 E05.90)
PLAN:
Labs and Diagnostic Test to be ordered:
· CMP
· Complete blood count (CBC)
· Lipid profile
· Thyroid-stimulating hormone (TSH)
· Urinalysis with Micro
· Electrocardiogram (EKG 12 lead)
Pharmacological treatment:
· Hydrochlorothiazide tab 25 mg, Initial dose: 25 mg orally
once daily.
· Lisinopril 10mg PO Daily
Non-Pharmacologic treatment:
· Weight loss
· Healthy diet (DASH dietary pattern): Diet rich in fruits,
vegetables, whole grains, and low-fat dairy products with
reduced content of saturated and trans l fat
· Reduced intake of dietary sodium: <1,500 mg/d is optimal
goal but at least 1,000 mg/d reduction in most adults
· Enhanced intake of dietary potassium
· Regular physical activity (Aerobic): 90–150 min/wk
· Tobacco cessation
· Measures to release stress and effective coping mechanisms.
Education
· Provide with nutrition/dietary information.
· Daily blood pressure monitoring log at home twice a day for 7
days, keep a record, bring the record on the next visit with her
PCP
· Instruction about medication intake compliance.
· Education of possible complications such as stroke, heart
attack, and other problems.
· Patient was educated on course of hypertension, as well as
warning signs and symptoms, which could indicate the need to
attend the E.R/U.C. Answered all pt. questions/concerns. Pt
verbalizes understanding to all
Follow-ups/Referrals
· Follow up appointment 1 weeks for managing blood pressure
and to evaluate current hypotensive therapy.
· No referrals needed at this time.
References
Codina Leik, M. T. (2014). Family Nurse Practitioner
Certification Intensive Review (2nd ed.).
ISBN 978-0-8261-3424-0
Domino, F., Baldor, R., Golding, J., Stephens, M. (2017). The
5-Minute Clinical Consult 2017
(25th ed.). Print (The 5-Minute Consult Series).
D2-1 Analyze the general environment of the company, by
incorporating all seven elements. The analysis should reveal and
point to the main opportunities and threats for selected
company.
In strategy formulation, analysis of the external environment is
a key input. The Nestle Company, therefore, cannot directly
control all the segments of the general environment and all
other apartments. It is, therefore, vital for the selection and the
implementation of proper strategies that are required for the
success of the company. For Porter's company, the five forces
incorporate the barriers to entry and the threats to new entrants,
the power of the buyer, the power of the supplier, substitute’s
threats, and the other rivalries that stipulate the external
environmental forces that are vital in the strategy development
(Chandler, 2017).
D2-2 Perform the industry analysis by applying the Five Forces
framework and assess whether the current industry is attractive
or not in terms of its profit potential.
Since the internal environment in the Nestle Company is
majorly focused on the evaluation of all the aspects of the
organization, at times, it considers the external broad market
shifts or other external organizations that are greatly inherent
with the characteristics and norms of the organization that is at
hand. For instance, the internal analysis is vital in the
identification of the organization's strong and weak aspects
without the considerations of the external organizations. In the
situation that only one organization is the one existing in a
certain area, it shows there is no competition leading to the
business environment being more neutral and thus significantly
affecting the organization.
D2-3 Explain whether the selected company belongs to any
specific strategic group within selected industry and state the
main arguments for this statement. Internal environment
analysis
In the strategic management context within the Nestle
Company, internal analysis is more vital for the organization.
There are situations that the account that might spend more on
the inefficiencies that strike the account internally, and thus,
the internal analysis is vital for the organization. The SWOT
analysis model is a key tool for the internal analysis of the
company since it aids one in thinking more about the
organization. Since it stipulates the company’s strengths,
weaknesses, opportunities, and threats, consider the analysis.
D2-4 Prepare the value chain analysis and highlight the main
activities in the company. Connect these activities with point
Within the Nestle Company, M. Porter has therefore introduced
a more generic value chain and thus has aided in the
presentation of all the internal activities that aids in the
production of goods and services. The primary activities,
therefore, aid in the addition of value in the final products and
activities indirectly. With the other latter two factors in the
value chain model conjunction with the SWOT analysis, one can
argue that they do not have focus, but the difference comes in
on how it is used in the organization. If the external factors are
ignored, for instance, all the materials and the costs together
with the regulations of the government. Although all the
primary activities are vital in the processes of production, they
might not be necessarily more critical than the support activities
(Terra & Passador, 2016)
D2-2 in a meaningful and substantiated way.
In summary, presently at Nestle Company, most of the
competitive advantages are driven by the technological
improvements and innovations in the processes and models of
the businesses. The opportunities and threats categories,
therefore, still provide valuable insights into the internal
aspects of the organization in the strategic management context.
D2-5 Assess the core competencies of selected company by
using the Table 3.4 as a guide. These competencies may be the
result of key activities identified through value chain analysis
in D2-1. Please note that you need to identify up to five core
competencies and argue about each.
The main discussion that was to be done here was the main
competencies and the sustainable competitive advantage for the
Nestle Company and the detailed explanation for the same was
as follows.
Background Research:
Here are some of the points that was required for making a good
company with the competencies, as the limits have for quite a
while been utilized as a structure to help base workers'
immediate on things that matter most to an association and help
drive achievement. They can give a common method to sort out,
pick and make limit. The advantages are clear for workers and
chiefs, lastly, the connection. As a connection grows, a thought
on limits without taking a gander at the more expansive
capacities won't be sufficient to make pioneers and drive work
improvement for workers. There are different techniques that
gigantic affiliations use to build up another competency show or
revive an obsolete one, including ace drove working social
affairs, beginning to end get-togethers with pioneers, and center
parties with specialists and accessory hypothesis.
Notwithstanding, for really unassuming and some medium size
affiliations, resisting time, spending plan and asset goals, an
easier, smoothed out system might be all together. Fortunately,
there are set up to-execute, prepared to move blueprints that can
give the advantages I alluded to as of now. The main
competencies of this company are innovation and renovation,
operational efficiency, etc.
D2-6 Based on identified key value chain activities and core
competences, identify on what basis the selected company
achieves its sustainable competitive advantage and compare it
with two main competitors in the industry.
The company can achieve its sustainable competitive advantage
through as follows. The avocation this appraisal is to separate
and give exact confirmation on. To analyze the relationship
between thing improvement and logical high ground. To take
apart the relationship between thing progress and market
driving and to look at the sustainable growth between market
driving and conceivable hardhearted advantage. Competition in
the business world is unavoidable, for that, each exerti on is
required to dependably know, appreciate what's going on the
post, what client needs; and handle the developments in the
business climate to coordinate with others. Thus, an endeavor to
get what and how to deal with an assortment of assets affirmed
to win the opposition and make advantage should dependably be
made. Thus, the competitive advantage can be compared with
the competitors according to the factors that every company that
can attain through the ways of business. These were about the
main discussion about the Nestle Company.
Reference:
Chandler, Alfred Strategy and Structure: Chapters in the history
of industrial enterprise,
Doubleday, New York, 2017.
Terra, L. A. A.; Passador, J. L. (2016). "Symbiotic Dyna mic:
The Strategic Problem from the
Perspective of Complexity". Systems Research and Behavioral
Science. 33 (2): 235–
248. doi:10.1002/sres.2379.
PESKETT, M. (2018). www.smartcompany.com. Retrieved from
Five steps to get a sustainable competitive
advantage: https://www.smartcompany.com.au/business-
advice/strategy/five-steps-to-get-a-sustainable-competitive-
advantage/
uniassignment. (2020). www.uniassignment.com. Retrieved
from Core Competencies And Their Sharpening Marketing
Essay: https://www.uniassignment.com/essay-
samples/marketing/core-competencies-and-their-sharpening-
marketing-essay.php
D3-1 Based on the previous analysis, determine the existing
business-level strategy that the company is applying. Your
analysis should entail the framework explained in Chapter 4 –
The Purpose of Business-Level Strategy and Types of Business-
Level Strategies. Please provide specific arguments in this
regard.
D3-2 Your report should also include the analysis of company’s
corporate-level strategy. Here you need to assess company’s
level of diversification together with stating the reasons and
whether that diversification is value-creating, value-neutral or
value-reducing. Also, your work will be of higher quality if you
assess the synergies between different business of the company.
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1CHAPTER4BUSINESS-LEVEL STRATEGYChapter 2The Exter

  • 1. 1 CHAPTER 4 BUSINESS-LEVEL STRATEGY Chapter 2 The External Environment Chapter 3 The Internal Organization Vision Mission Chapter 4 Business-Level Strategy Chapter 5 Competitive Rivalry and Dynamics Chapter 6 Corporate-Level Strategy Chapter 7 Merger and Acquisition Strategy Chapter 8 International Strategy Chapter 9 Cooperative Strategy Strategy formulation Strategic Competitiveness Above-Average Returns Chapter 10 Corporate Governance Chapter 11 Organizational Structure and Controls
  • 2. Chapter 12 Strategic Leadership Chapter 13 Strategic Entrepreneurship Strategy implementation Analysis Strategy Performance The Strategic Management Process A-S-P model Chapter 4: BUSINESS-LEVEL STRATEGY Chapter overview: Defining business-level strategy Customers: their relationship with business-level strategies The purpose of a business-level strategy Types of business-level strategies (link with Value chain and 5 forces) 3 Introduction Strategy – increasingly important to a firm’s success and concerned with making choices among two or more alternatives. Choices dictated by External environment Internal resources, capabilities and core competencies Examples from gaming industry (King Digital Entertainment vs. EA) 4
  • 3. Introduction Business level-strategy – integrated and coordinated set of commitments and actions the firm uses to gain a competitive advantage by exploiting core competencies in specific product markets Generic strategy – a strategy that can be used by any organization competing in any industry 5 Introduction 6 A firm must use a Business Level Strategy It is not necessary to use all the corporate level strategies, acquisition, restructuring, international… From the dry cleaner to the multinational corporation – a firm must choose at least one business-level strategy The business level strategy is the core strategy - the strategy that the firm forms to describe how it intends to compete in the product market
  • 4. Introduction 7 In terms of customers, when selecting a business-level strategy the firm determines: who will be served, what needs those target customers have that it will satisfy, and how those needs will be satisfied Customers: Their Relationship with Business-Level Strategies 8 8 Strategic competitiveness results when firm can satisfy customers by using its competitive advantages Returns earned are the lifeblood of firm Most successful companies satisfy current customers and/or meet needs of new customers
  • 5. Customers: Their Relationship with Business-Level Strategies 9 Five components in customer relationships 1. Effectively managing relationships with customers Deliver superior value Strong interactive relationships is foundation 2. Reach, richness and affiliation Access and connection to customers Depth and detail of two-way flow of information between firm and customer Facilitating useful interactions with customers – viewing the world from the customer’s eyes 9 Customers: Their Relationship with Business-Level Strategies 10 Five components in customer relationships 3. Who: Determining the customers to serve
  • 6. Market segmentation Dividing customers into groups based on differences in needs Process used to cluster people with similar needs into individual and identifiable groups For example, consumer and industrial markets 10 11 Customers: Their Relationship with Business-Level Strategies 12 Five components of customer relationships 4. What: Determining which customer needs to satisfy What = Needs Related to a product’s benefits and features Must anticipate and be prepared: (i.e., High-quality? Low price?) Translate into features and performance capabilities of products 5. How: Determining core competencies necessary to satisfy customer needs Core competencies: resources and capabilities that serve as source of competitive advantage for firm over its rivals How = core competencies 12 Customers: Their Relationship with Business-Level Strategies
  • 7. 13 “All organizations must use their capabilities and core competencies (the How?) to satisfy the needs (the What?) of the target group of customers (the Who?) the firm has chosen to serve” 13 Purpose of Business-Level Strategies Purpose: To create differences between position of a firm and its competitors Firm must make a deliberate choice to Perform activities differently Perform different activities Southwest Airlines principles of strategy Six areas of strategic intent: limited passenger service frequent, reliable departures lean, highly productive ground and gate crews high aircraft utilization with few aircraft models very low ticket prices short-haul, point-to-point routes between mid-sized cities and secondary airports 14 Purpose of Business-Level Strategies Purpose: To create differences between position of a firm and its competitors Firm must make a deliberate choice to Perform activities differently
  • 8. Perform different activities Activity map exemplifies a firm’s activities How they are integrated Rayanair e.g. limited passengers service (no meals, no seat assignment and no baggage transfers) form a cluster for a strategic theme. Activity Fit is key to the sustainability of competitive advantage 15 16 Taken from: Hitt, M. A., Ireland, R. D., and Hoskinsson R. E. (2017). Strategic management: Competitiveness and globalization. Cengage Learning. 12th edition, page 126-127 Types of Business-Level Strategies Two types of competitive advantage firms must choose between Cost (Are we LOWER than others?) Uniqueness (Are we DIFFERENT? How?) Two types of ‘competitive scope’ firms must choose between Broad target Narrow target These combine to yield 5 different business-level strategies 17 18 Competitive
  • 9. Scope Competitive Advantage Cost Uniqueness Broad Target Narrow Target Cost Leadership Differentiation Focused Cost Leadership Focused Differentiation Integrated Cost Leadership/ Differentiation Types of Business-Level Strategies Cost Leadership Competitive advantage:
  • 10. The low-cost leader and operates with margins greater than competitors Competitive scope: Broad Integrated set of actions designed to produce or deliver goods or services with features that are acceptable to customers at the lowest cost, relative to competitors Standardized goods Continuously reduce costs of value chain activities Inbound/outbound logistics account for significant cost Low-cost position is a valuable defense against rivals 19 Types of Business-Level Strategies Cost leaders are in a position to Absorb supplier price increases and relationship demands Force suppliers to hold down their prices Continuously improving levels of efficiency and cost reduction Can be difficult to replicate and Serve as significant entry barriers to potential competitors Cost leaders hold an attractive position in terms of product substitutes, with the flexibility to lower prices to retain customers Examples: TK Maxx, Big Lots Inc., Wal-Mart 20 21 Highly efficient systems to link suppliers’ products with the firm’s production processes Use of economies of scale to reduce production costs Construction of efficient-scale production facilities A delivery schedule that reduces costs
  • 11. Selection of low-cost transportation carriers A small, highly trained sales force Products priced so as to generate significant sales volume Efficient and proper product Installations in order to reduce the frequency and severity of recalls Systems and procedures to find the lowest-cost (with acceptable quality) products to purchase as raw materials Frequent evaluation processes to monitor suppliers’ performances Easy-to-use manufacturing technologies Investments in technologies in order to reduce costs associated with a firm’s manufacturing processes Consistent policies to reduce turnover costs Cost-effective management information systems Intense and effective training programs to improve worker efficiency and effectiveness Simplified planning practices to reduce planning costs
  • 12. Relatively few managerial layers in order to reduce overhead costs MARGIN MARGIN Inbound logistics Operations Outbound logistics Marketing and Sales Service Infrastructure HRM Technology Development Procurement Types of Business-Level Strategies Cost Leadership in relation to the 5 Forces: Rivalry against existing competitors – Rivals hesitate to compete on the basis of price (in particular against a company which is well established and able to produce its private-label products) Bargaining Power of Buyers (Customers) – Customers do not want to force a leader to lower the price much as this will force other competitors to exit the market leaving the leader almost alone controlling selling price Bargaining Power of Suppliers – As long as the company can keep effective margins greater than those of competitors, it can absorb suppliers’ price increase – big players like Wal-Mart may have a power over its suppliers Potential Entrants – They need to be able to operate at average return levels till they are able to get into a cost leader position Product Substitutes – The company needs to be willing to offer more features to the product/service, or reduce prices more –
  • 13. while still being able to operate profitably 22 Types of Business-Level Strategies Competitive risks of the cost leadership strategy There is a limit to cost reduction Focus on cost may cause the firm to overlook important customer preferences Imitation 23 Types of Business-Level Strategies Differentiation Competitive advantage: Differentiation Competitive scope: Broad Integrated set of actions designed by a firm to produce or deliver goods or services at an acceptable cost that customers perceive as being different in ways that are important to them Target customers perceive product value Customized products – differentiating on as many features as possible Examples: Apple’s iPod, Nivea deodorants, iPhone SE??? 24 25 Superior handling of incoming raw
  • 14. materials so as to minimize damage and to improve the quality of the final product Consistent manufacturing of attractive products Rapid responses to customers’ unique manufacturing specifications Accurate and responsive order- processing procedures Rapid and timely product deliveries to customers Extensive granting of credit buying arrangements for customers Extensive personal relationships with buyers and suppliers
  • 15. Extensive buyer train- ing to assure high- quality product installations Complete field stocking of repla- cement parts Systems and procedures used to find the highest-quality raw materials Purchase of highest-quality replacement parts Strong capability in basic research Investments in technologies that will allow the firm to produce highly differentiated products Compensation programs intended to encourage worker creativity and productivity Highly developed information systems to better understand customers’ purchasing preferences Somewhat extensive use of subjective rather than objective performance measures A company-wide emphasis on the importance of producing high-quality products MARGIN MARGIN Inbound logistics
  • 16. Operations Outbound logistics Marketing and Sales Service Infrastructure HRM Technology Development Procurement Superior personal training Types of Business-Level Strategies Differentiation in relation to the 5 Forces: Rivalry against existing competitors Customers are loyal purchasers of differentiated products i.e., Bose (electrical products-Headset) Bargaining Power of Buyers (Customers) Inverse relationship between loyalty/product: As loyalty increases, price sensitivity decreases i.e., Callaway golf clubs Bargaining Power of Suppliers Provide high quality components, driving up firm’s costs Cost may be passed on to customer Potential Entrants Substantial barriers (see above) and would require significant resource investment Product Substitutes Customer loyalty effectively positions firm against product substitutes 26
  • 17. Types of Business-Level Strategies Competitive risks of the differentiation strategy Customers determine that the cost of differentiation is too great The means of differentiation may cease to provide value for which customers are willing to pay Experience can narrow customers’ perceptions of the value of a product’s differentiated features Counterfeiting/copying 27 Types of Business-Level Strategies There are two “Focus” strategies In general, the firms’ core competencies used to serve the need of a particular industry segment or niche to the exclusion of others. May lack resources to compete in the broader market May be able to more effectively serve a narrow market segment than larger industry-wide competitors Firms may direct resources to certain value chain activities to build competitive advantage Large firms may overlook small niches 28 Types of Business-Level Strategies Focus strategy examples Buyer groups Youths/senior citizens Product line segments Professional painter groups Geographic markets West vs. East coast
  • 18. 29 Types of Business-Level Strategies Focused Cost Leadership Competitive advantage: Low-cost Competitive scope: Narrow industry segment Focused Differentiation Competitive advantage: Differentiation Competitive scope: Narrow industry segment i.e., in the outdoor recreation business a firm that caters to fly fishing is following a focused differentiation strategy (as opposed to discount stores that carry general fishing gear) High quality equipment Knowledgeable personnel Guided tours Fly tying classes 30 Types of Business-Level Strategies Risks of using “Focus” strategies A competitor may be able to focus on a more narrowly defined competitive segment and "outfocus” the focuser A company competing on an industry-wide basis may decide that the market segment served by the focus strategy firm is attractive and worthy of competitive pursuit Customer needs within a narrow competitive segment may become more similar to those of industry-wide customers as a whole 31
  • 19. Types of Business-Level Strategies Integrated Cost Leadership/Differentiation Efficiently produce products with differentiated attributes Efficiency: Sources of low cost Differentiation: Source of unique value Can adapt to new technology and rapid changes in external environment Simultaneously concentrate on TWO sources of competitive advantage: cost and differentiation – consequently… …must be competent in many of the primary and support activities Three sources of flexibility useful for this strategy 32 Types of Business-Level Strategies Three flexible sources include Flexible manufacturing systems (FMS) Computer controlled process used to produce a variety of products in moderate, flexible quantities with a minimum of manual intervention Goal: eliminate ‘low cost vs. product variety, tradeoff inherent in traditional manufacturing technologies Information networks Using technology to link suppliers, distributors and customers Total Quality Management (TQM) systems Emphasizes firm’s total commitment to the customer and continuous improvement of every process through data-driven, problem-solving approaches based on empowering employees 33 Types of Business-Level Strategies Competitive Risks of Integrated Strategies
  • 20. Although becoming more popular the RISK is getting ‘stuck in the middle’ Cost structure is not low enough for attractive pricing of products and products not sufficiently differentiated to create value for target customer – therefore, fail to successfully implement either low cost or differentiation strategy Result: Don’t earn above-average returns 34 35 (Student Name) Date of Encounter: Preceptor/Clinical Site: Clinical Instructor: Soap Note # Main Diagnosis ( Exp: Soap Note #3 DX: Hypertension) PATIENT INFORMATION Name: Mr. DT Age: 68-year-old Gender at Birth: Male Gender Identity: Male Source: Patient Allergies: PCN, Iodine Current Medications: · Atorvastatin tab 20 mg, 1-tab PO at bedtime · ASA 81mg po daily · Multi-Vitamin Centrum Silver PMH: Hypercholesterolemia
  • 21. Immunizations: Influenza last 2018-year, tetanus, and hepatitis A and B 4 years ago. Preventive Care: Coloscopy 5 years ago (Negative) Surgical History: Appendectomy 47 years ago. Family History: Father- died 81 does not report information Mother-alive, 88 years old, Diabetes Mellitus, HTN Daughter-alive, 34 years old, healthy Social History: No smoking history or illicit drug use, occasional alcoholic beverage consumption on social celebrations. Retired, widow, he lives alone. Sexual Orientation: Straight Nutrition History: Diets off and on, Does not each seafood Subjective Data: Chief Complaint: “headaches” that started two weeks ago Symptom analysis/HPI: The patient is 65 years old male who complaining of episodes of headaches and on 3 different occasions blood pressure was measured, which was high (159/100, 158/98 and 160/100 respectively). Patient noticed the problem started two weeks ago and sometimes it is accompanied by dizziness. He states that he has been under stress in his workplace for the last month. Patient denies chest pain, palpitation, shortness of breath, nausea or vomiting. Review of Systems (ROS) CONSTITUTIONAL: Denies fever or chills. Denies weakness or weight loss. NEUROLOGIC: Headache and dizziness as describe above. Denies changes in LOC. Denies history of tremors or seizures. HEENT: HEAD: Denies any head injury, or change in LOC. Eyes: Denies any changes in vision, diplopia or blurred vision. Ear: Denies pain in the ears. Denies loss of hearing or drainage. Nose: Denies nasal drainage, congestion. THROAT: Denies throat or neck pain, hoarseness, difficulty swallowing. RESPIRATORY: Patient denies shortness of breath, cough or
  • 22. hemoptysis. CARDIOVASCULAR: No chest pain, tachycardia. No orthopnea or paroxysmal nocturnal dyspnea. GASTROINTESTINAL: Denies abdominal pain or discomfort. Denies flatulence, nausea, vomiting or diarrhea. GENITOURINARY: Denies hematuria, dysuria or change in urinary frequency. Denies difficulty starting/stopping stream of urine or incontinence. MUSCULOSKELETAL: Denies falls or pain. Denies hearing a clicking or snapping sound. SKIN: No change of coloration such as cyanosis or jaundice, no rashes or pruritus. Objective Data: VITAL SIGNS: Temperature: 98.5 °F, Pulse: 87, BP: 159/92 mmhg, RR 20, PO2-98% on room air, Ht- 6’4”, Wt 200 lb, BMI 25. Report pain 2/10. GENERAL APPREARANCE: The patient is alert and oriented x 3. No acute distress noted. NEUROLOGIC: Alert, CNII-XII grossly intact, oriented to person, place, and time. Sensation intact to bilateral upper and lower extremities. Bilateral UE/LE strength 5/5. HEENT: Head: Normocephalic, atraumatic, symmetric, non- tender. Maxillary sinuses no tenderness. Eyes: No conjunctival injection, no icterus, visual acuity and extraocular eye movements intact. No nystagmus noted. Ears: Bilateral canals patent without erythema, edema, or exudate. Bilateral tympanic membranes intact, pearly gray with sharp cone of light. Maxillary sinuses no tenderness. Nasal mucosa moist without bleeding. Oral mucosa moist without lesions,. Lids non- remarkable and appropriate for race. Neck: supple without cervical lymphadenopathy, no jugular vein
  • 23. distention, no thyroid swelling or masses. CARDIOVASCULAR: S1S2, regular rate and rhythm, no murmur or gallop noted. Capillary refill < 2 sec. RESPIRATORY: No dyspnea or use of accessory muscles observed. No egophony, whispered pectoriloquy or tactile fremitus on palpation. Breath sounds presents and clear bilaterally on auscultation. GASTROINTESTINAL: No mass or hernia observed. Upon auscultation, bowel sounds present in all four quadrants, no bruits over renal and aorta arteries. Abdomen soft non-tender, no guarding, no rebound no distention or organomegaly noted on palpation MUSKULOSKELETAL: No pain to palpation. Active and passive ROM within normal limits, no stiffness. INTEGUMENTARY: intact, no lesions or rashes, no cyanosis or jaundice. ASSESSMENT: Main Diagnosis Essential (Primary) Hypertension (ICD10 I10): Given the symptoms and high blood pressure (156/92 mmhg), classified as stage 2. Once the organic cause of hypertension has been ruled out, such as renal, adrenal or thyroid, this diagnosis is confirmed (Codina Leik, 2015). Diagnosis is based on the clinical evaluation through history, physical examination, and routine laboratory tests to assess risk factors, reveal identifiable causes and detect target-organ damage, including evidence of cardiovascular disease (Domino et al,. 2017). Differential diagnosis: · Renal artery stenosis (ICD10 I70.1) · Chronic kidney disease (ICD10 I12.9) · Hyperthyroidism (ICD10 E05.90) PLAN: Labs and Diagnostic Test to be ordered:
  • 24. · CMP · Complete blood count (CBC) · Lipid profile · Thyroid-stimulating hormone (TSH) · Urinalysis with Micro · Electrocardiogram (EKG 12 lead) Pharmacological treatment: · Hydrochlorothiazide tab 25 mg, Initial dose: 25 mg orally once daily. · Lisinopril 10mg PO Daily Non-Pharmacologic treatment: · Weight loss · Healthy diet (DASH dietary pattern): Diet rich in fruits, vegetables, whole grains, and low-fat dairy products with reduced content of saturated and trans l fat · Reduced intake of dietary sodium: <1,500 mg/d is optimal goal but at least 1,000 mg/d reduction in most adults · Enhanced intake of dietary potassium · Regular physical activity (Aerobic): 90–150 min/wk · Tobacco cessation · Measures to release stress and effective coping mechanisms. Education · Provide with nutrition/dietary information. · Daily blood pressure monitoring log at home twice a day for 7 days, keep a record, bring the record on the next visit with her PCP · Instruction about medication intake compliance. · Education of possible complications such as stroke, heart attack, and other problems. · Patient was educated on course of hypertension, as well as warning signs and symptoms, which could indicate the need to attend the E.R/U.C. Answered all pt. questions/concerns. Pt verbalizes understanding to all Follow-ups/Referrals
  • 25. · Follow up appointment 1 weeks for managing blood pressure and to evaluate current hypotensive therapy. · No referrals needed at this time. References Codina Leik, M. T. (2014). Family Nurse Practitioner Certification Intensive Review (2nd ed.). ISBN 978-0-8261-3424-0 Domino, F., Baldor, R., Golding, J., Stephens, M. (2017). The 5-Minute Clinical Consult 2017 (25th ed.). Print (The 5-Minute Consult Series). D2-1 Analyze the general environment of the company, by incorporating all seven elements. The analysis should reveal and point to the main opportunities and threats for selected company. In strategy formulation, analysis of the external environment is a key input. The Nestle Company, therefore, cannot directly control all the segments of the general environment and all other apartments. It is, therefore, vital for the selection and the implementation of proper strategies that are required for the success of the company. For Porter's company, the five forces incorporate the barriers to entry and the threats to new entrants, the power of the buyer, the power of the supplier, substitute’s threats, and the other rivalries that stipulate the external environmental forces that are vital in the strategy development (Chandler, 2017). D2-2 Perform the industry analysis by applying the Five Forces
  • 26. framework and assess whether the current industry is attractive or not in terms of its profit potential. Since the internal environment in the Nestle Company is majorly focused on the evaluation of all the aspects of the organization, at times, it considers the external broad market shifts or other external organizations that are greatly inherent with the characteristics and norms of the organization that is at hand. For instance, the internal analysis is vital in the identification of the organization's strong and weak aspects without the considerations of the external organizations. In the situation that only one organization is the one existing in a certain area, it shows there is no competition leading to the business environment being more neutral and thus significantly affecting the organization. D2-3 Explain whether the selected company belongs to any specific strategic group within selected industry and state the main arguments for this statement. Internal environment analysis In the strategic management context within the Nestle Company, internal analysis is more vital for the organization. There are situations that the account that might spend more on the inefficiencies that strike the account internally, and thus, the internal analysis is vital for the organization. The SWOT analysis model is a key tool for the internal analysis of the company since it aids one in thinking more about the organization. Since it stipulates the company’s strengths, weaknesses, opportunities, and threats, consider the analysis. D2-4 Prepare the value chain analysis and highlight the main activities in the company. Connect these activities with point Within the Nestle Company, M. Porter has therefore introduced a more generic value chain and thus has aided in the presentation of all the internal activities that aids in the
  • 27. production of goods and services. The primary activities, therefore, aid in the addition of value in the final products and activities indirectly. With the other latter two factors in the value chain model conjunction with the SWOT analysis, one can argue that they do not have focus, but the difference comes in on how it is used in the organization. If the external factors are ignored, for instance, all the materials and the costs together with the regulations of the government. Although all the primary activities are vital in the processes of production, they might not be necessarily more critical than the support activities (Terra & Passador, 2016) D2-2 in a meaningful and substantiated way. In summary, presently at Nestle Company, most of the competitive advantages are driven by the technological improvements and innovations in the processes and models of the businesses. The opportunities and threats categories, therefore, still provide valuable insights into the internal aspects of the organization in the strategic management context. D2-5 Assess the core competencies of selected company by using the Table 3.4 as a guide. These competencies may be the result of key activities identified through value chain analysis in D2-1. Please note that you need to identify up to five core competencies and argue about each. The main discussion that was to be done here was the main
  • 28. competencies and the sustainable competitive advantage for the Nestle Company and the detailed explanation for the same was as follows. Background Research: Here are some of the points that was required for making a good company with the competencies, as the limits have for quite a while been utilized as a structure to help base workers' immediate on things that matter most to an association and help drive achievement. They can give a common method to sort out, pick and make limit. The advantages are clear for workers and chiefs, lastly, the connection. As a connection grows, a thought on limits without taking a gander at the more expansive capacities won't be sufficient to make pioneers and drive work improvement for workers. There are different techniques that gigantic affiliations use to build up another competency show or revive an obsolete one, including ace drove working social affairs, beginning to end get-togethers with pioneers, and center parties with specialists and accessory hypothesis. Notwithstanding, for really unassuming and some medium size affiliations, resisting time, spending plan and asset goals, an easier, smoothed out system might be all together. Fortunately, there are set up to-execute, prepared to move blueprints that can give the advantages I alluded to as of now. The main competencies of this company are innovation and renovation, operational efficiency, etc.
  • 29. D2-6 Based on identified key value chain activities and core competences, identify on what basis the selected company achieves its sustainable competitive advantage and compare it with two main competitors in the industry. The company can achieve its sustainable competitive advantage through as follows. The avocation this appraisal is to separate and give exact confirmation on. To analyze the relationship between thing improvement and logical high ground. To take apart the relationship between thing progress and market driving and to look at the sustainable growth between market driving and conceivable hardhearted advantage. Competition in the business world is unavoidable, for that, each exerti on is required to dependably know, appreciate what's going on the post, what client needs; and handle the developments in the business climate to coordinate with others. Thus, an endeavor to get what and how to deal with an assortment of assets affirmed to win the opposition and make advantage should dependably be made. Thus, the competitive advantage can be compared with the competitors according to the factors that every company that can attain through the ways of business. These were about the main discussion about the Nestle Company.
  • 31. Chandler, Alfred Strategy and Structure: Chapters in the history of industrial enterprise, Doubleday, New York, 2017. Terra, L. A. A.; Passador, J. L. (2016). "Symbiotic Dyna mic: The Strategic Problem from the Perspective of Complexity". Systems Research and Behavioral Science. 33 (2): 235– 248. doi:10.1002/sres.2379. PESKETT, M. (2018). www.smartcompany.com. Retrieved from Five steps to get a sustainable competitive advantage: https://www.smartcompany.com.au/business- advice/strategy/five-steps-to-get-a-sustainable-competitive- advantage/ uniassignment. (2020). www.uniassignment.com. Retrieved from Core Competencies And Their Sharpening Marketing Essay: https://www.uniassignment.com/essay- samples/marketing/core-competencies-and-their-sharpening- marketing-essay.php D3-1 Based on the previous analysis, determine the existing business-level strategy that the company is applying. Your analysis should entail the framework explained in Chapter 4 – The Purpose of Business-Level Strategy and Types of Business- Level Strategies. Please provide specific arguments in this regard. D3-2 Your report should also include the analysis of company’s corporate-level strategy. Here you need to assess company’s level of diversification together with stating the reasons and whether that diversification is value-creating, value-neutral or value-reducing. Also, your work will be of higher quality if you assess the synergies between different business of the company.