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Topics

 Business Level Strategy

 Strategic Integration  Porter’s five forces of competitive position Analysis  The Innovation Life Cycle  WHAT IS SOCIAL ENTREPRENEURSHIP  Article "Learning Entrepreneurs: learning and innovation in small companies”

BUSINESS LEVEL STRATEGY (Tabish Aslam)

BUSINESS LEVEL STRATEGY DEFFINATION Business level strategies detail actions taken to provide value to customers and gain a competitive advantage by exploiting core competencies in specific, individual product or service markets.

BUSINESS LEVEL STRATEGY Cost Leadership Differentiation

Focused Low Cost Focused Differentiation Using an Integrated Low Cost/Differentiation Strategy

BUSINESS LEVEL STRATEGY Cost Leadership

Building state of art efficient facilities (may make it costly for competition to imitate) Maintain tight control over production and overhead costs Minimize cost of sales, R&D, and service. Porter's 5 Forces Model How to Obtain a Cost Advantage Determine and Control Cost Reconfigure the Value Chain as Needed

BUSINESS LEVEL STRATEGY Differentiation

•Lowering Buyers' Costs – Higher quality means less breakdowns, quicker response to problems. •Raising Buyers' Performance – Buyer may improve performance, have higher level of enjoyment. •Sustainability – Creating barriers by perceptions of uniqueness and reputation, creating high switching costs through differentiation and uniqueness.

BUSINESS LEVEL STRATEGY Diffraction Diffraction various refers to various phenomena that occur when a wave encounters an obstacles or a slit

BUSINESS LEVEL STRATEGY Types: • Innovation / Invention • Product-level differentiation • Price differentiation • Packaging • Service pre sale and post sale • Point of customer interaction • User convenience • Offer variety of products

BUSINESS LEVEL STRATEGY Focused Low Cost Organizations not only compete on price, but also select a small segment of the market to provide goods and services to. For example a company that sells only to the U.S. government. Focused Differentiation Organizations not only compete based on differentiation, but also select a small segment of the market to provide goods and services.

BUSINESS LEVEL STRATEGY Using an Integrated Low Cost/Differentiation Strategy • Adaptability to environmental changes. • Learn new skills and technologies • More effectively leverage core competencies across business units and products lines which should enable the firm to produce produces with differentiated features at lower costs.

STRATEGIC INTEGRATION

(M.Tayyab)

Strategic Integration Internal Integration External Integration Types of Integration Backward vertical integration Forward vertical integration

Horizontal integration

Strategic Integration Advantages of vertical Integration

Smoothen its supply chain Make its distribution and after-sales service more efficient Increase entry barriers for new entrants

Disadvantages of vertical Integration The quality of goods supplied earlier by external sources may fall because of a lack of competition. Flexibility to increase or decrease production of raw materials or components may be lost as the company may need to sustain a level of production in pursuit of economies of scale. It may be difficult for the company to sustain core competencies as it focuses on the integration of the new units.

Strategic Integration

Advantages of Horizontal integration Economies of scale Increased differentiation Increased market power

Ability to enter new markets

Porter’s five forces of competitive position Analysis  Supplier Power

When limited suppliers are available in market

 Buyer Power

When buyers have many options

 Competitive Rivalry

The main driver is the number and capability of competitors in the market

 Threat Of Substitution

The main driver is the number and capability of competitors in the market

 Threat Of New Entry

Profitable markets attract new entrants, which erodes profitability

Porter’s five forces of competitive position Analysis  Supplier Power

When limited suppliers are available in market

 Buyer Power

When buyers have many options

 Competitive Rivalry

The main driver is the number and capability of competitors in the market

 Threat Of Substitution

The main driver is the number and capability of competitors in the market

 Threat Of New Entry

Profitable markets attract new entrants, which erodes profitability

THE INNOVATION LIFE CYCLE &

WHAT IS SOCIAL ENTREPRENEURSHIP (Salman Zafar)

What Is Innovation Life Cycle The innovation life cycle tracks the life of a single product and consists of multiple invention and innovation stages. These stages reflect how a company's actions impact the target market for the product.

Types Of Innovation o Incremental Innovation

Incremental Innovation is the most common form of innovation

o Disruptive Innovation

Involves applying new technology or processes

Architectural Innovation

simply taking the lessons, skills and overall technology and applying them within a different market

o Radical innovation

what we think of mostly when considering innovation

WHAT IS SOCIAL ENTREPRENEURSHIP  Social entrepreneurs find creative ways of employing assets, resources and funding. For-profit entrepreneurs typically measure performance using business metrics like profit, revenue and stock prices. Social entrepreneurs are either non-profits or blend for-profit goals with generating a positive return to society.  They use different metrics. Social entrepreneurship aims to further broad social, cultural and environmental goals. These are often associated with the voluntary sector in areas such as poverty alleviation, renewable energy, housing, and healthcare and community development

 The definition of social enterprise varies across countries. This is because these initiatives: o Take numerous forms o Engaged in multiple networks of activity o Subject to different legal structures from one country to the next this includes  Individuals  Foundations and trusts  Social franchises  Charities – not-for-profit or nongovernmental organizations

Article on:

“Learning Entrepreneurs:

learning and innovation in small companies” (Ghulam Mujtaba)

Introduction This article concerns agricultural entrepreneurs involved in organizing their learning so as to develop innovative and learning enterprises. Within small companies, the entrepreneur has a pivotal role in the innovative process: the entrepreneur is the professional learner. In hi-tech sectors, such as Dutch agriculture, this learning and innovative capacity is particularly essential for economic survival

What is Innovation? Innovation is a complex process, based on interactive network learning and processes of trial and error on the shop floor. Small companies are dependent on external knowledge infrastructures for effective innovation.

• Developments in the Knowledge Infrastructure of Dutch Agriculture Learning as the Basis of Innovation • The Innovative Entrepreneur is a Learning Entrepreneur

• Knowledge Sources and Learning Processes of Entrepreneurs • With regard to general orientation,entrepreneurs try to keep their eye on developments in their markets, within their sector and in society in general.

• Specific information is gathered on technological and market aspects. For example, greenhouse farmers need daily information on price developments at the auction and specific technological information for the improvement of processes and products.

• Unlike the first two reasons for seeking information, problem-solving activities are narrowly targeted. Journals, networks and databases are used to look for specific solutions. For technical problems, the knowledge infrastructure offers rather good information; for marketing problems, the interviewees reported that they had to search much more independently.

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