Module 2 Summary Paper

Model 1 Summary Paper

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Model 1 Summary Paper

NAGA SRINIVAS GUNTUPALLI

Harrisburg University

MGMT 510 50 B Business Strategy and Management Principles

Dr. Stanley Nwoji

August 2nd, 2021

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Abstract

This paper talks about summarization of the lessons learned from the module 1 and the concepts

learned from the lectures. Paper mainly focuses on the summarization of each lecture on what

has been learned in the class and discussion of all lessons which are learned. This paper also

utilized the sources from various articles and books and paper explains how all the sources are

applicable in real lifetime scenarios by brining all real time facts on paper which is part of a

learning experience from the course. Paper provides in depth information by referring to recent

sources which belongs from year 2016 to 2020. Paper provides all the concepts learned from the

module with detailed summary by following all rubrics.

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Table of Contents

Abstract………………………………………………………………………………………….2

Introduction……………………………………………………………………………………...4

Summary of the topics covered in the module………………………………………………….5

Concepts learned from each topic in the module………………………………………………...6

Concepts under strategy………………………………………………………………………….6

Concepts under Competitive Advantage………………………………………………………...7

Concepts under Business Model………………………………………………………………...9

Concepts under Scenario Planning……………………………………………………………...11

Conclusion……………………………………………………………………………………....13

Reference……………………………………………………………………….……………….13

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Introduction

The model 1 summary paper explains about the concepts which were taught in strategic

leadership which includes the concepts of managing the strategy making process for competitive

advantage. All the concepts which are covered in this chapter provides all detailed information

with all facts and providing all real time experiences. Mainly it provides information on the

applicability of the concepts in the professional lifetime. All the concepts under this chapter are

derived from the learning objectives with the help of supporting sources which are referred to

accomplish the deliverable successfully. The concepts learned from the chapter also adds more

value and weightage to the paper and also provides value to the author of the sources which are

added.

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Summary of the topics covered in the module

➢ Strategy: The strategy is a well-defined planning in the organization. In an organization

strategy is implemented based on allocation of the resources such as capital, equipment,

and labor in order to support the organizational activities. Strategy requires good

leadership for strategy execution process, formulation for the purpose of choosing right

strategies based on the external or internal factors and strategy implementation to ensure

the strategies are delivered as per the plan.

➢ Competitive Advantage: The competitive advantage is something refers to the factors

which enable the organization to offer products and service at low prices than its

competitors. Competitive advantage can be helpful for the organization to generate more

sales and profits than its competitors in the market.

➢ Business Model: A business model is something which provides information on how the

organization creates, captures, and delivers the value to the customers. The business

model is a part of business strategy. Business model is important both start up based and

well very old well-established organization to sustain in the competition.

➢ Scenario Planning: Scenario planning all about making predictions and estimations on

what exactly the future of the organization can be and how the business environment can

be modified. It is complete process of identification of specific set of unexpected events

which can impact the organization.

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c

Concepts under strategy

1. Formulation Phase: The formulation phase is a concept under strategic management

process where decisions are being made based on the business scope, values, and

commitments. Strategic thought process plays key role in this concept.

The formulation phase concept is applicable when the organization initiates any project

related activities it needs to set-up an organizational objective, analyze the market

environment, analyzing the performance metrics and selection of right strategy for

execution in order to have organization’s success.

2. Implementation Phase: Under this concept, the organization seeks and executes

strategic modification. In this concept the implementation of various skills, knowledge

and abilities are needed. In this phase how new changes are implemented by replacing

old existing strategies which a part of change management process. Clear communication

process is important.

The implementation phase concept is applicable in the real time scenario where

organization such as Apple, where every year they will be launching new product into the

market. Before launching the product, the organization already pre-written document

which will be executed as per the documentation on how exactly the launching should

happen. Moreover, organization has their own action steps which has to be taken place at

right time is already decided before as a part of planning.

3. Evaluation Phase: The main objective of this concept is to make sure the executed

strategy is working out well or not. In the evaluation phase concept is important how the

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strategic execution can be worked out as an opportunity or threat and how well the

strategy can sustain the risk by mitigating or accepting it. The expected results are

compared with the actual results this provides a constructive feedback on where the

organization need to enhance itself.

The evaluation phase is applicable in the real time scenario when the organization already

executes certain actions then the organization evaluates the executed actions in order to

make execution took place exactly as per the plan or not. When any deviations or the

execution is not done correctly means then the organization prepares evaluation report

which can be referred as lessons learnt document by the organization.

4. Functional Strategy and Competitive Strategy: The functional strategic concept is

something related to the development of distinctive competence in order to provide an

organization with a competitive advantage whereas competitive strategic concept is

something related to the impact of external factors which includes integrative concerns of

the internal factors of the organization.

Concepts of Competitive Advantage.

1. Cost Leadership: This concept is utilized by the organization where they reduce the

cost of the products to gain a larger profit. The organizations follow various

marketing strategies to gain recognition and awareness on their brands among the

customers in the market. Every organization seeks brand recognition from public. The

reason for using this cost leadership concept is to make sure organization offers good

quality-based products where sales are done low reasonable price. The benefits of

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having cost leadership are it enhances market size, enhancement of business

sustainability, less competition and profit margin growth.

This concept of cost leadership is applicable to the organization such as Walmart,

Amazon and Marshalls which follow this concept to sustain in the market. All these

brands created themselves a brand recognition in the market.

2. Comparative Advantage: This concept relates to the organization which offers

products or services in efficient way than its competitors which can result can great

profit margin. From customer point of view, customer would choose who offers the

product or service for low price based on the situation or scenario.

This concept of comparative advantage is applicable to Walmart where the

organization does gasoline services. Walmart offers gasoline for cheap price when

compared to other gasoline companies. So, customer would seek to fill the gas at

Walmart to save money.

3. Differential Advantage: This concept relates to the organization which offers unique

products or service which aren’t offered anywhere by any organization. Having

differentiated unique features and advantages of the offered products or services can

make the organization stronger. In order to create strong branded identity, the

companies offer unique feature-based products or services to the customers so that

customers can be more focused on their organization offered products and services

only.

This concept of differential advantage is applicable to the organization such as Apple

and Tesla. As Apple Inc offered operating system named IOS which is not offered by

any other organization where apple-based features aren’t offered by other

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organizations. The objective of Apple is to make sure customer again and again

purchase apple products only. When it comes Tesla which produces electric cars. The

features which are there in the Tesla’s car would not be available in the other cars. So,

Tesla has created differential advantage in automobile industry whereas Apple has

created differential advantage in consumer electronics industry.

Concepts of Business Model

1. Customer Segmentation: The concept of customer segmentation refers to where

the organization forms groups based on the customer information which is

provided. The objective of this concept is to ensure how to deal with customer

based on the attributes of the customer in terms of offerings and deals. The

customer segmentation is done based on rating and feedbacks provided by the

customer. More importantly organization should know who exactly are their

customers and their exact needs which can be fulfilled.

This concept is applicable to the organizations who take continuous feedbacks

from the customer so that based customer feedback the organization makes

various offers to protect the customer to sustain in the market. For example,

subscription offer where if customer feels the subscription fees is too high and

customer want to unsubscribe then the organization system offers another

reasonable offer so that customer can stay with them. The organization intention

is to ensure they don’t loose customers.

2. Revenue Streaming: Revenue streaming is something which organization

generating amounts from products which are sold. The revenue generation is

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completely dependent on the types of activities which are executed by the

organization

This concept of revenue streaming is applicable in transaction-based revenues

where the organization makes money from one time-based customer. The

revenues which are generated from the services which are provided to the

customers based on the time spent and concept is applicable to recurring revenues

where revenues are generated from the customers based on monthly, yearly

subscription and licensing fees.

3. Key Activities: Key activities are those deliverables where organization is mainly

involved only those activities with more focus which helps in gaining profit and

adding value to the customers. As every organization’s domain is different, so the

activities completely depend on the type of the organization.

The concept of key activities is applicable to the organization resources who work

continuously to deliver something which adds value to the organization. For

instance, there can be a sales manager in an organization, the key activities

include generate more sales leads by selling the organization products or services

as per the given target.

4. Cost Structure: The concept of cost structure in the business model defines how

the costs and expenses that organization spends while business model operations

are accomplished so that it can help the organization on how to move forward. In

cost structure the categories include mainly value driven cost structure and cost

driven cost structure. The value driven cost structure is highly dependent on what

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value the organization’s product or service can provide to the customers whereas

cost driven cost structure is something related to reduction of the costs.

This cost structure concept is applicable to the newly start up organizations who

do investments such as technology, training, utility, and equipment which is

needed by the organization. For investment cost is required which can support the

organizational activities successfully. The value driven cost structure is applicable

towards organization which adds value to the customers by providing innovative

features and added advantages in the offered products or services.

Concepts from Scenario Planning

1. Identification of critical triggers: During the time of any crisis bases scenario, the

organization require the past historical data. In this concept of scenario planning the

organization will get an idea on how to access various factors based on scenario which

may take place. Identification of critical triggers serves as a route map for solving the

scenario-based issues.

This concept is applicable when organization facing any financial crisis such as cost

cutting or budgeting issues so the organization can refer to the historical data information

based on the necessary action steps can be implemented.

2. Development of multiple scenarios: In this concept the proper planning methodology

plays a vital role. The organization can be framing multiple scenarios i.e., “what if this

happens”. So, the organization should come up with one good management plan.

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The concept is applicable to the organization which predicts multiple risk factors or

issue-based factors which can affect and show impact on the organization. The

organization has to come up with issue management plan or any risk management plan as

a part of strategy which can be implemented based on the scenario occurrence.

3. Building adaptive response strategy: In this concept, every scenario which is predicted

should have detailed accessible information which can be either success or failure of the

strategy which is implemented. When the detailed information is accessible then

organization can help themselves in creating framework which can be supportive in

making decisions.

The concept is applicable for the organizations when there is situation where the

organization has to implement one response strategy. For implementing better response

strategy organization has to follow the risk management document which involves

strategies which can be executed successfully when any issues occur.

4. Model with basic scenarios: In this concept, organizational individuals should form as

groups to frame the scenarios as severities or level of impact. The level of impact can be

low, medium, and high. In low based scenarios the organization’s costs and revenues are

challenging. The low based scenario is applicable when the organization seeks saving

costs during the time of offering quality products or services. The medium based scenario

is applicable is an assumption where organization’s sales will increase based on final

actual results. The high based scenario is mainly depending on product demand and

enhancement of sales due to modifications in the market which had took place.

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Conclusion

Therefore, the paper has covered all the topics under module 1 which has shared reasonable

information. The information has included various concepts under each topic. The concepts

applicability has added more value to this paper to ensure how the organization work in the

industry to deliver the products and services to their customers. Al the concepts which are in the

paper had provided detailedness to ensure all facts and sources are covered.

References

(https://www.iedunote.com/strategic-management, 2021)

https://www.optimove.com/resources/learning-center/customer-segmentation, 2020

(Business Jargons, 2020) from https://businessjargons.com/strategy-formulation.html

(Corporate Finance Institute, 2021) from

https://corporatefinanceinstitute.com/resources/knowledge/accounting/revenue-streams/

(Steven Imke, 2019) from https://www.business2community.com/strategy/key-activities-and-

your-business-model-02232678

(Gary Fox, 2021) Cost Structure - How To Minimize Costs And Maximize Value from

https://www.garyfox.co/cost-structure/

(Rami Ali and David Luther, 2020), Scenario Planning: Strategy, Steps and Practical Examples |

NetSuite from https://www.netsuite.com

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