1. STRATEGY FORMULATION and IMPLEMENTATION MANAGEMENT 6 th Ed. By: Richard Daft Prepared by: GREGAR DONAVEN E. VALDEHUEZA, MBA Lourdes College Instructor

9. Three Levels of Strategy in Organization Corporation Textile Units Chemicals Unit Auto Parts Unit Finance R & D Manufacturing Marketing Corporate-Level Strategy: What business are we in? Business-Level Strategy: How do we compete? Functional-Level Strategy: How do we support the business-level strategy?

10. Corporation Textile Units Finance R & D Manufacturing Marketing Corporate-Level Strategy: What business are we in? Business-Level Strategy: How do we compete? Functional-Level Strategy: How do we support the business-level strategy?

19. Porter’s Five Competitive Forces Rivalry among Competitors Threat of Substitute Products Potential New Entrants Bargaining Power of Buyers Bargaining Power of Suppliers Internet tends to increase bargaining power of suppliers Internet reduces barriers to entry Internet blurs differences among competitors Internet creates new substitution threats Internet shifts greater power to end consumers

21. Partnership Strategies Organizational Combination Strategic Alliances Acquisitions Mergers Joint Ventures Strategic Business Partnering Preferred Supplier Arrangements High D E G R E E O F C O L L A B O R A T I O N Low