Generic Business Strategies

Unit 1 Discussion

Generic Business Strategies

One of the first steps in training is determining the business justification for an investment in training. Does training add value to the organization? In order to determine if training adds organizational value, an organization must know its business strategy. That business strategy will provide the business justification for training and indicate if training is a good investment. This Discussion Board question will give you a better understanding of business strategy.

Workshop 1 states that strategy is derived from a Greek word (strategos), which means “general.” Today “strategy” is a commonly used word with little understanding of what it actually means, the result being that much of what is described as strategic, is not strategic. A dictionary definition includes science, art, enemy, plan, goal, and advantage. Thus, a business strategy is about data, positioning, planning, and competitive advantage. A business strategy can have a broad or narrow focus, a high or low cost focus, or a focus on product uniqueness. Once the competitor is identified, these variables are woven together to form a cogent business strategy (Figure 3.2 in Worksheet 3 – SWOT and Generic Strategies).

What happens when a business does not have a business strategy? It is trying to be all things to all customers and lacks any clear focus. The result is that the organization gets “Stuck in the Middle” (SITM) as seen in Figure 3.2 in Worksheet 3.

Identify and explain the “Broad-Scope and Narrow/Focused Strategies” described in Worksheet 3 located under Course Resources. How would you describe the Generic Strategy of the organization you will use for the Unit 1 assignment?

Many organizations are SITM (Stuck in the Middle). How would you work with the organization you will use in assignment 1 if it was SITM, or if that organization is not SITM, how would you work with an organization that was SITM? What would you recommend and why?

Professor & Classmates –