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SYSTEM OF CORPORATE MANAGEMENT 1

SYSTEM OF CORPORATE MANAGEMENT 1. Management of the enterprise. 1.0. Strategy - creating a market advantage. 1.1. Attitudes of competitive companies. 1.2. Price strategies of the enterprise. 1.3. Paths of strategic development. 1.4. Relation strategies of the enterprise.

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SYSTEM OF CORPORATE MANAGEMENT 1

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  1. SYSTEM OF CORPORATE MANAGEMENT 1

  2. Management of the enterprise 1.0. Strategy - creating a market advantage. 1.1. Attitudes of competitive companies. 1.2. Price strategies of the enterprise. 1.3. Paths of strategic development. 1.4. Relation strategies of the enterprise. 2.0. Decisive processes in company’s management. 2.1. Planning in company’s management. 2.2. Basic models of decisive processes. 2.3. Decisive processes in strategy realization. 3.0.Corporate identity and social intelligence. 3.1.Social intelligence of a company. 3.2.Corporate identity:definitions and contexts. 3.3.Corporate culture, identity and image. 3.4.Transforming corporate identity.

  3. Attitudes of competitive companies Defensive attitude leads to building strongest barriers possible protecting from agression of competitors from the inside and from the outside; Ofensive attitude leads to modifying balance of forces in competitive game; Pro-active attitude maximises use of competetitiveness processes and decides about stopping activity realized untill now, if it doesn’t lead to planned goals.

  4. Attitudes of competitive companies There are three possible orietnations of the company selecting a strategic group: Strengthening firm’s position within a particular group and strengthening the position of the whole group; Changing a group for a more advantageous one; Creating a new strategic group, which would enter into a free space in the market.

  5. Kinds of strategies – depending on competition system

  6. Creating a market advantage Strategic implications of experience effect Competitive rivalisation usually leads to establishing market prices, which are resulting from the level of costs of most effective producers. Those, who have not much experience, have higher costs, they do not reach the satysfying level of profit margin and the market eliminates them.

  7. Experience and competitive position of a company unitary cost C market price B costs A experience cumulated production

  8. Experience and competitive position of a company Competitors, who want to benefit the experience effect must fulfill two conditions:First: providing systematical reduction of costs coherent with production increase. Second: dominating share in the market, which requires constant maximizing the level of production, reaching for new experience and reducing costs to the lowest possible level.

  9. Creating a market advantage Rigid prices comapring to stage of maturity of the sector Costs and price A B C D Price Costs Cumulated production

  10. Paths of strategic development Differentiationstrategies Strategy of differentiation over the standard Value credited to the offer by the market Area of strategic turn Profitability limit Development area 1 Cost strategies Standard offer 3 Strategy of differentiation under the standard 2 Area of unprofitability Price Area of competitive strtegies

  11. Paths of strategic development Specialization . Stages of maturity Maturity (decline) Initiation (growth) COMPETITIVE Strong and easy to protect Extencive specialization Passive specialization (considering other paths of development: diversification) POSITION Weak and difficult to protect Restrictive specialization (placing in particular part of the market) Specialization by concentration Restrictive specialization (detachement) Specialization by diversification Types of specialization

  12. Choise of diversification strategy Four stages of diversification STARTING COMPETITIVE POSITION IN FORMER STRATEGIC SEGMENT strong medium weak high DIVERSIFICATION FOR SURVIVAL Atractiveness of strategic segment low

  13. Relation strategies of the enterprise In business we usually meet six sorts of such relations: State protectionism, Agreements, Suppliers’ clubs for the state Strategic aliance Political and technological Political and trade union strategies SUBJECT OF RELATION 13

  14. Relation strategies Three dimention strategy model Three Dimention Strategy Space The space is presented in form of a cube, which can be decomposed into eight smaller cubes, which represent particular variants of the company’s strategy. VALUE QUALIFI-CATIONS SECURITY

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