Author Question: What are the different types of business-level strategies? What will be an ideal ... (Read 60 times)

nummyann · **on:** Jul 7, 2018

What are the different types of business-level strategies?

What will be an ideal response?

Question 2

Explain how effective culture is an important source of competitive advantage?

What will be an ideal response?

bassamabas · **Reply #1 on:** Jul 7, 2018

Answer to Question 1

The different types of business-level strategies are:
1. Low-cost business-level strategy: It is a plan whereby an organization produces low-priced goods and services for all customer groups.
2. Differentiation business-level strategy: It is a plan whereby an organization produces high-priced, quality products aimed at particular market segments.
3. Focus strategy: Focus strategy involves specializing in one segment of a market and focusing all of the organization's resources on that segment.

Answer to Question 2

A competitor can easily imitate another organization's structure, but it is very difficult for a competitor to imitate another organization's culture, for culture is embedded in the day-to-day interactions of functional personnel. Culture is very difficult to control and manage, let alone imitate or copy, so a company that has an effective culture has an important source of competitive advantage.

The coordination abilities that stem from an organization's culture emerge gradually and are a product of many factors: an organization's property rights system, its structure, its ethics, and the characteristics of its top-management team. Because these factors can be combined in many different ways, reproducing another organization's culture is difficult.