Kfc Seminar File on Strategy

Corporate level:

Top level management is referred as corporate level. Corporate level focuses on the decisions for the allocation of large scale resources between businesses within that corporation. It describes a company's overall direction in terms of its general attitude toward growth and the management of its various business and product lines. Corporate level is important for making the decision on stability, growth and retrenchment. Some other importance is:

 It helps to deploy resources,

 It helps to use core competencies, and

 It helps to share activities.

Corporate level strategy:

Corporate level strategies are the overall managerial game plan for a diversified company; it extends company wide- an umbrella overall a diversified company business. These strategies consist of moves made to establish business position in different industries and the approaches used to manage the company's group businesses.

There are many strategies that are used at corporate level. They are listed below:

 Stability strategy,

 Expansion strategy,

 Retrenchment strategy, and

 Combination strategy.

Combination strategy is the most suitable strategy for PUMA SE. The combination strategy includes stability strategy, growth strategy, and retrenchment strategy.

At present, Franz Koch is in charge of Global Strategy for PUMA and based in Herzogenaurach, Gremany. He has been responsible for the long-term strategic group development and management of special projects such as portfolio optimization, process re-engineering as well as mergers and acquisitions. Moreover, he coordinated and helped execute the company's restructuring program in 2009 to lay the foundation for sustainable growth following the economic crisis. Koch has also strongly contributed to PUMA's long-term sustainability program and most recently, he was instrumental in developing - in close cooperation with Jochen Zeitz and the other members of the Board of Management - the five-year growth strategy "Back on the Attack 2011-15" with its clear mission for PUMA to become the most desirable and sustainable Sport lifestyle company.

Strategic Business Unit

In business, a strategic business unit (SBU) is a profit center which focuses on product offering and market segment. SBUs typically have a discrete marketing plan, analysis of competition, and marketing campaign, even though they may be part of a larger business entity.

An SBU may be a business unit within a larger corporation, or it may be a business unto itself. Corporations may be composed of multiple SBUs, each of which is responsible for its own profitability. General Electric is an example of a company with this sort of business organization. SBUs are able to affect most factors which influence their performance. Managed as separate businesses, they are responsible to a parent corporation.

The different SBU level strategies used by PUMA SE are explained below:

 Cost leadership

 Differentiation

 Cost focus

 Differentiation focus

Why SBU?

When organizations get large, they become slow, awkward, unmanageable, inflexible, and difficult to focus. They distance people from each other, and consume more energy than they release.

Determining success of SBU:

 Degree of autonomy given to each SBU manager

 Degree to which an SBU shares functional programs and facilities with other SBU

 The way in which the corporation handles SBU in any new changes in market.

BCG Matrix

In the late 1960s the Boston Consulting Group, a leading management consulting company, designed a four-cell matrix known as BCG Growth/Share Matrix. This tool was developed to aid companies in the measurement for all their company businesses according to relative market share and market growth. The matrix provides a composite picture of the strategic position of each separate business within a company so that the management can determine the strengths and the needs of all sectors of the firm. The business strength measure is the business's Relative Market share. The market growth rate measures industry attractiveness. The underlying theory for examining market growth rate is the industry life cycle. The BCG assumes that growth rates(life cycle stages) affect a firm's finances. Placing products in the BCG matrix results in 4 categories:

1. stars (high growth, high market share)

2. cash cows(low growth, high market share)

3. dogs (low growth, low market share)

4.

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