Module Formulation of Strategy
This module contains the following units:
4 Business Level Strategy
A SME positions itself by leveraging its strengths. Michael Porter has argued that a firm's strengths fall into one of two categories: cost advantage or differentiation. By applying these strengths in either a broad or narrow scope, three generic strategies result: cost leadership, differentiation, and focus. These strategies are applied at SME level. Franchising is discussed as an option for SME´s.
5 Vertival Integration for SMEs
Vertical integration is the extent to which an SME controls its inputs and the distribution of its products and services. A SME's control of its inputs or supplies is known as backward integration. A SME´s control of its distribution is known as forward integration. Small scale vertical integration is commonly known as Supply Chain Optimization or also as Supply Chain Planning. This unit analyzes an SME's vertical integration strategy. Shows benefits, costs and risks of vertical integration and shows how vertical integration can be included in a SME's strategic management.
6 Internationalisation for SMEs
The central objective of this unit is to develop effective managerial and business leadership skills for dealing with those management issues that arise when firms do business across nations. The unit focus on SME's and the possibilities for going international. It will analyze costs and risks and shows how internationalization strategy can be included in an SME's strategic management.
7 Diversification for SMEs
Diversification strategies are used to expand firms' operations by adding markets, products, services, or stages of production to the existing business. The purpose of diversification is to allow the company to enter lines of business that are different from current operations. This unit focus on SME's and the possibilities for diversification. It will analyze portfolios and shows how they can be planned and managed.
8 Business Development
The Business Development Strategy is used to underpin your main Business Plan and essentially it sets out a standard approach for developing new opportunities, either from within existing accounts or by proactively targeting brand new potential accounts and then working to close them. The unit will analyze mergers, acquisitions and strategic alliances and will demonstrate how they can be included in strategic management of SME'S
