SYSTEM OF CORPORATE MANAGEMENT 1
STRATEGY
DECISION
PROCESSES
STRUCTURE
CORPORATE
IDENTITY
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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.
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3.4.Transforming corporate identity.
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,
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if it doesn’t lead to planned goals.
Attitudes of competitive
companies
M
M
M
M
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
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would enter into a free space in the market.
Kinds of strategies – depending on competition system
SYSTEM OF COMPETITION
VOLUMEN
Small number of competitiors
Leadership in profitability
Marginal meaning of competitors, who benefit
from the market only in good periods of business
cycle
SPECIALIZATION
Numerous and very profitable companies, which
dominate in their parts of the market
Gaining equal position in particular sectos,
changing limits and strong competitiveness
Unprofitable imitation
STRATEGY
To develop faster than other competitors and
reaching better cost position
To concentrate on stability of the system
Concentrating on individual sector of the
market
Maximizing advantage in sphere of particular
costs, becoming leader in the sector
Minimizing stable costs, increasing individual
costs
DISPERSION
Many small competitors strongly rotating in and
out the market
Various and uncertain profits
For each company: divising areas of activity
and managing all of them as small forms (very
difficult) or changing specialization or changing
the strategy for the volumen system
IMPAS
There are no dominating competitor in the
market
All competitors might loose if they do not
reduce their production
Most innovative participants have most debts and
most outdated have best financial position
Idea of agreement realized with accordance of
authorities or
Control of the local market (specific customer)
Localization of investment in place of lowest
production costs
Elaboration of individual technologies and its
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protection
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.
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Experience and competitive position of a company
unitary
cost
C
market price
B
A
costs
experience
cumulated production
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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.
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Creating a market advantage
Costs
and
price
A
B
C
D
Price
Costs
Cumulated production
Rigid
prices comapring to stage of maturity of the sector
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Paths of strategic development
Differentiation strategies
Value credited
to the offer
by the market
Strategy
of differentiation
over the standard
Area of strategic turn
Cost strategies
Strategy
of differentiation
under the standard
Development
area
2
Standard
offer
1
3
Area of
unprofitability
Price
Area of competitive strtegies
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Paths of strategic development
Specialization
.
Initiation
Stages of maturity
(decline)
(growth)
C
O
M
P
E
T
I
T
I
V
E
Strong
and easy
P
to Extencive specialization
O protect
S
I
T
I
O
N
Weak
and Restrictive specialization
difficult (placing in particular part
to of the market)
protect
Maturity
Passive specialization
(considering other paths of
development: diversification)
Specialization by concentration
Restrictive specialization
(detachement)
Specialization by diversification
Types of specialization
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Choise of diversification strategy
Four stages of diversification
STARTING COMPETITIVE POSITION
IN FORMER STRATEGIC SEGMENT
Atractiveness of
strategic segment
strong
high
medium
weak
SHARE
DIVERSIFICATION
STRENGTHENING
DIVERSIFICATION
low
EXTENTING
DIVERSIFICATION
DIVERSIFICATION
FOR SURVIVAL 12
Relation strategies of the enterprise
In business we usually meet
six sorts of such relations:
 State protectionism,
 Agreements,
 Suppliers’ clubs
OBJECT OF Market
for the state
RELATION
strategy
OF
Strategic aliance SUBJECT
RELATION
State
 Political and
Competitor (s)
technological
Client (s)
 Political and
Supplier (s)
trade union
Lobbist (s)
strategies
Technologi
cal and
logistical
strategy
Financial
strategy
Social
strategy
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Relation strategies
Three dimention strategy model
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.
Three Dimention
Strategy Space
VALUE
QUALIFICATIONS
SECURITY
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