UNIVERSITY COLLEGE DUBLIN

NATIONAL UNIVERSITY OF IRELAND, DUBLIN

Bachelor of Science

(Sri Lanka)

Business Policy (BMGT3001L)

Module Co-ordinator:

Dr. Bandara Wanninayake

I declare that all the materials included in this essay/report/project/dissertation is the end
result of my own work and that due acknowledgement have been given in the bibliography
and references to ALL sources be they printed, electronic or personal.

Student Name

Student Number:
Signature

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BSc 16/ Sri Lanka

Assessment Submission Form

Student Name

N.D.S Dissanayake

Student Number

12255479

Assessment Title

Pre Course Assignment

Module Code

BMGT3001L

Module Title

Business policy

Tutor

Dr Bandara Wanninayake

Date Submitted

25.01.2014

Date Received
Grade/Mark

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Date

25/01/2014

Introduction
In this report, it will be discussed what is basically a strategy different views on strategy. This
article, what is the strategy? By M. Porter here to emphasize that there should be an attitude,
and a strong strategy and a range of different activities to create a sustainable competitive
advantage in the company, which leads them towards more profitable and sustainable
business.

Strategic approach and activities

Strategy is a perspective, position, plan, and pattern. Strategy is the bridge between policy
objectives or high-order on the one hand and tactics or concrete actions on the other hand.
Strategy and tactics together span the gap between ends and means. In short, the strategy is a
term that refers to a complex web of thoughts, ideas, insights and experiences, goals and
experiences, memories, perceptions and expectations that provides general guidance for
specific actions in pursuit of certain goals. Strategy is at the same time, of course, we have to
draw, on a trip imagine and, at the same time, of course, is we lead, actually make the trip.
Even when we are embarking on a journey of discovery, with no particular destination in
mind, the trip has a purpose, which is the result, and put an end because the rest of opinion.
Porters Generic strategies

1. Cost leadership strategy

Porter Public Strategies of ways to gain a competitive edge - in other words, the development
of "edge" that gets you sell and take away from your competitors. There are two main ways to
achieve this in the context of cost leadership strategy:
Increase profits by reducing costs, while charging prices the industry average.
Increase market share through the imposition of lower prices, while still achieving a
reasonable profit on every sale you reduce costs.

2. Differentiation strategy
3

Differentiation involves making different products or services more attractive than those of
your competitors. How do you do this depends on the specific nature of your industry ,
products and services itself , but will usually involve features and functionality , and
durability , and also support the brand image that your value to our customers.
To make a success of differentiation strategy, organizations need:
Good research and development and innovation .The ability to provide products or
services of high quality.
Effective sales and marketing, so that the market understands the benefits offered by
the disparate performances.
You need large organizations pursuing differentiation strategy to stay agile processes
with the development of new products. Otherwise, they run the risk of an attack on
several fronts by competitors pursue differentiation strategies focus on different
market segments.

3. Strategic focus
Companies that use strategies to focus a particular focus on niche markets and, through an
understanding of the dynamics of this market and the unique needs of clients within it, and the
development of low-cost products unique or well-defined market. It serves customers in a
unique market well, they tend to build strong brand loyalty among its customers. This makes
it part of their own market less attractive to competitors.

4. Operational effectiveness and strategy

Porter is the first management guru to label clearly the area of regulatory activity that
complements the strategy directly. By coined the term "operational efficiency" in this way, he
opens up the possibility to explore the other side, as it were, of the currency management in a
systematic way. To him the purpose of the session is to point up the importance of the strategy
simply because of being good at something does not guarantee success. Must be a good
direction and purpose
Porters point is succinctly expressed by describing operational effectiveness as a necessary
but not sufficient condition for organizational success. And, of course, the same thing can be
said of strategy.
Strategy and operational effectiveness is equal partners in enterprise

The relationship between these two factors a little deeper than simply mutual dependency.
They inform each other. Operational effectiveness is about the existence of jobs in the
organization, which works well. These functions are, of course, the skills of the organization
or core competencies " and, therefore, as indicated by Porter, must be compatible with each
other and work together to implement the strategy. On the other hand, restrictive possible
strategies of the organization, at least in the medium term, by the skill-sets available for their
implementation. A manufacturer of motorcycle has a strategy to diversify in the automotive
industry, but it is unlikely to be able to, say, the entry of businessmen ice cream because the
job skills required are radically different. Strategy may require the ability, but the ability, in
turn limiting strategy.
By creating strategic / operational effectiveness of the division, and Porter paved the way to
explore the operational effectiveness itself as a player in other key organizational success. All
those things that make the organization a master's degree of technical competence and
effectiveness. In the chart below, I have compiled these into four "meta activities" that
constitute a virtuous circle of support operational effectiveness.

OE is constantly improving on the job performance. To do so, managers command and control
functional activities within the organization, and measure and improve the processes that are
responsible for it, and take advantage of those operations through the consolidation of
communications and automation to then close the loop to provide more efficient and effective
than ever before. It is the role of strategy for molding these functions all in one coherent
regulatory that would succeed in selected markets.

5. Strategic sustainability and trade-offs

Trade-offs necessary to strategy. These are the options that make sustainable strategies
because it is not easy to match or to neutralize. They create the need for choice and protection
against repositions and straddles. It serves as a meaningful challenge for the company.
Strategy requires choice. And creating competitive advantage requires you to make choices
that are different from those of your rivals--trade-offs that often involve saying no to some
customers so you can better serve others. The concept of trade-offs is the third of Michael
Porter's five core elements of strategy and another of his strategy "tests."
Trade-offs arise for three reasons:
Inconsistencies

in

image

or

reputation

a company known for delivering one kind of value may lack credibility and confuse
customers if it delivers another kind of value or attempts to deliver two inconsistent
things at the same time.
Arising
from

activities

themselves

the configuration of activities that best delivers one kind of value cannot equally well
deliver another. In general, value is destroyed if an activity is overdesigned or under
designed for its use.
Limits
on

internal

coordination

or

control

senior management makes organizational priorities clear by deciding to compete in

one way and not another.
While Operational Effectiveness is about achieving activities, strategy is about combining
activities. Success depends more on fit of activities than on core factors.
Three types of fits which are not mutually exclusive
Simple consistency (e.g. low cost applies everywhere).

 Reinforcing (e.g. Neutrogena markets to luxury hotels that in return benefit to offer
guests a high quality soap).
Optimization of efforts (e.g. control of inventory allows better in-retail service).
Fit, understood as an entire system (which can visualized in activity-system maps) constitutes
a competitive advantage.
Further, fit strengthens the sustainability of a company for it is harder for rivals to imitate a
system than an individual activity.
According to Porter: Strategy is creating fit among a companys activities.

Rediscovering strategy
I.

Failure to Choose: managers have become confused about the necessity of

trade-offs (e.g. too far from productivity, misguided, homogenized view of
competition). According to Porter, although external changes can pose a threat
to a companys strategy, a greater threat to strategy often comes from within
the company. Moreover, the main problem lies in the "best practices" mentality
managers, who believe in making any trade-offs, and constantly seeking
operational efficiency, and the tradition of the competitors to catch up in the
race for operational effectiveness. Thus, managers simply do not understand

II.

the need to have a strategy.

Growth Trap: trade-offs appear to constrain grow (e.g. serving only one group
of customers). Companies often grow by expanding their product lines, adding
new features, services and tradition of popular competitors, and matching
operations, and to make acquisitions. However, most companies start with its
strategic location and unique clear involve trade-offs. However, with the
passage of time and the pressures of growth, and lead companies to make
concessions, and that was in the beginning, almost imperceptibly. Thus,
through a series of incremental changes, which seemed reasonable at the time,
companies have compromised their way to homogeneity with their rivals.
Compromises and contradictions in the pursuit of growth eventually erode the
competitive advantage of the company and its uniqueness. Rivals continue to
match each other until it breaks this vicious circle of despair, and results in a
merger or reduce the original GPS.

III.

Profitable Growth: many companies succumb to the easy growth (e.g.

introducing hot features, targeting new markets in which the company has little
special to offer). Globalization often allows growth that is consistent with a
companys strategy, as it opens larger markets for a focused strategy. Thus,
expanding globally is more likely to reinforce a companys unique position
than broadening domestically.

IV.

Role of Leadership: Leadership is not about the stewardship of different

activities, its about defining and communicating the companys unique
position, making trade-offs, and forging fit among activities. Strategic about
choosing what to do and also what not to do. Deciding which group of
customers, and the targeting of varieties, and the company needs should be
essential to develop a strategy. Strategy, but is also in the decision not to serve
customers or other needs and the lack of certain features or services. Thus, the
strategy requires constant discipline and clear communication. Strategy should
guide employees in making choices that arise because of the trade-offs in
individual activities and day-to- day decisions.
In addition, managers need to understand that operational effectiveness,
although necessary part of the administration, not a strategy. It should be able
to distinguish clearly between the two managers.

Conclusion
"Continuity strategy does not mean static view of competition and the company must
continuously improve the operational effectiveness and strives to turn the border productivity;
at the same time, there must be an ongoing effort to expand its uniqueness while strengthening
the fit between for activities" (Michael E. Porter). However, you may have a company to
change its strategic location because of major structural change in the industry. Company to
choose its new location depending on its ability to find new trade-offs and take advantage of a
new system for supplementary activities to sustainable advantage.

Congratulations!

You have successfully completed the Library Plagiarism Quiz.

Student Name: N.D.S. Dissanayake

Student Number: 12255479.

Date:.17/11/2012

THIS IS TO CERTIFY THAT (signature) HAS

COMPLETED THE PLAGIARISM QUIZ
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