Elements Of Business Strategy | Objectives and Plans
A business strategy also has to develop the detailed aims and action plans for the functional areas. A host of questions must be addressed in this portion of a strategy. Will special emphasis be given logistics for customer service or will the firm decentralize manufacturing to provide short supply linkages to key customers? Will the firm need a strong advertising campaign or will it need to support distributor activities that play key roles in product differentiation? How important is supply management, relative to other facets of the value creation process? How can the sales, service, and operations people at the branches be encouraged to work as a team?
In many markets, careful analytical attention and planning are given to the product line—its scope, composition by functional feature and durability, horizontal and vertical connectivity, price, and so on. A computer company must consider the relationship of each model to the others it markets. What is the positioning strategy for each model and the array of accessories and peripherals? Engineering, purchasing, manufacturing, and logistics must collaborate in the formulation of supporting goals and activities.
The growing interconnectivity in today’s information environment has posed new challenges for computer makers. For the small and midsized firms that want network services, manufacturers are relying more heavily on their value-added resellers (VARs). But at least two distinct action plans are evident. The approach used by Digital and Compaq favors Internet and/or intranet technology to provide technical and strategic support to a broad base of VARs. The other approach, exemplified in moves by IBM and Apple, provides increased service and incentives for an elite group of VARs.
Of course, the remainder of the marketing mix must also be tightly formulated. Advertising and distribution strategies must be worked out to support the intended positioning and product line strategies. The roles of the sales force with respect to each product and customer group need to fit with the advertising and telephone marketing strategies. Also, pricing strategies need to be in harmony with the advertising, selling, distribution, and manufacturing strategies.