Notesale: Turn your study into money

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The purpose of corporate
strategy:
• Determine how best to meet the corporate goals
• Set priorities and know where to focus efforts

Top-down vs
...

ITC

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...
3-4

Level of competition: the

2
...
Competition
4
...
Buyers’
position in the
market

3
...
3-5

Core competences
= Critical strengths that allow your
firm to compete successfully in the
marketplace

 They reflect the collective know-how
and capabilities of the enterprise
 They are difficult to
imitate by competitors

ITC

Examples:

 A capacity for innovation in
product design & development

 A highly capable system for
managing the supply chain of
inputs

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...

Reduce total
costs

Ensure continuity of
production

Improve
quality

Respond quickly to
market changes
12
3

9
6
ITC

Innovate
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...
4-6

Benefits customers seek in the

products/services that they buy:

Availability:





ITC

Order quantity
Lead-time to delivery
Delivery reliability
Continuity of supply
Product/service range
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...
4-8

Benefits customers seek in the

products/services that they buy:
Low cost:

 Purchase price
 Cost of acquisition
 Total cost of ownership

ITC

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...
4-11

New

Diversifying
markets

Developing
productmarkets

Increasing
market
share

Developing
products/
services

Existing

New

Markets
Existing

Products/services
ITC

New product/service ideas come from market research,
business contacts and from the company’s R&D
...
5-3

Implications for purchasing
& supply:
 Are new materials and technologies available?
 Can we obtain these from known suppliers?
 Are we better placed to source than our competitors?
 Should we involve suppliers in product design?
 Which components should we make, and which
should we buy?

 Should we buy custom or standard components?
ITC

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...
g
...
9-4

Implications for purchasing
& supply:
 What range of materials can we buy, how quickly
and at what prices?
 What risks do we face in the supply chain?

 How can we ensure availability & continuity of
supply?

 How can suppliers help us to build innovation, quality
improvement and cost reduction into our products?

 How else to reduce lead times, ensure quality and cut
the total cost of supply?

ITC

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...
g
...
9-6

Implications for purchasing
& supply:
 Which functions will our firm undertake, and which
will it source externally?

 Which will be their objectives, priorities, policies and strategies?
 What will be the relationships amongst its functions
and its processes?

 What structure will it adopt?
ITC

M1:U4:4

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