Strategic management varies across different business contexts. In small businesses, strategy is more planning-based due to limited scope and resources. Multinational companies must consider strategy at both the corporate and business unit levels, allocating resources and coordinating operations globally. Manufacturing strategy focuses on physical products, while services are more important to strategy in service organizations. Public sector strategy is determined by political rather than market conditions, prioritizing social issues over business concerns. Not-for-profit strategy centers values and ideologies, with multiple revenue sources and susceptibility to political influences.

1. Strategic Management in
Different Business Context
PRESENTED BY: Narendra kumar
2014MCOM009

2. Strategic Management
• Strategy and strategic management varies in
different business contexts.
– The small business context
– The multinational context
– The manufacturing and service organization context
– Strategy in public sector
– Strategy in Voluntary and not-for-profit sectors.

3. Strategy: Small Business
Context
NAREN

4. Strategy: Small Business
Context
• Scope of operations are less
strategic and more planning
based.
• Unless the firm is a specialist in
the field, it would be under heavy
market pressures.
• Arranging resources & developing
competences may be a big
problem.
• Firm may not have a separate
strategy team.
• Owner is the most important
stakeholder.
Direction & Scope
Long Term Perspective
Advantage for Organization
Resources & Competences
Environment
Needs of Market
Stakeholder’s Expectations

5. Strategy: Multinational Context
o CORPORATE LEVEL BUSINESS LEVEL

6. Strategy: Multinational Context
• Products and markets are
diverse.
• The key strategic issues
include:
– Aspects of structure and
control at the corporate level ,
– the relationships at the
various business units level,
– Allocation of resources among
the business units, and
– Coordination of operational
logistics across business units
and geographies.
Direction & Scope
Long Term
Advantage for Organization
Resources & Competences
Environment
Needs of Market
Stakeholder’s Expectations

7. Service and Manufacturing
Direction & Scope
Long Term
Advantage for Organization
Resources & Competences
Environment
Needs of Market
Stakeholder’s Expectations
• Competitive advantage in
service organizations is
much more related to the
extent to which customers
value less tangible features
• For manufacturing
organizations, the physical
products is the central to
competitive strategy and
services are merely needed
to support the product.

8. Strategy: Public Sector Context
Direction & Scope
Long Term
Advantage for Organization
Resources & Competences
Environment
Needs of Market
Stakeholder’s Expectations
• The most powerful stakeholder in
the case of public sector is the
government.
• Scope and direction is determined
by political rather than market
conditions.
• The competition is mainly for the
input of resources rather than
towards the market and
customers.
• Social issues and concerns are
more important environmental
factors rather than business sense.

9. Strategy: Not-for-Profit Sector

10. Strategy: Not-for-Profit Sector
The values and ideologies
are central to strategy
development.
There exists multiple source
of income and revenue.
They are more susceptible to
lobbying and other political
influences.
Direction & Scope
Long Term
Advantage for Organization
Resources & Competences
Environment
Needs of Market
Stakeholder’s Expectations