Fluent Essays

Hello,  Please go through the attachments carefully, you need to go through all 3 PPTs of all three chapters to have a better understanding of the assignment. Im attaching the screen shots.  You need to work on the word document named MGMT 510 Module 2 Summary Paper where you need to write the paper in APA style. Already I wrote on the document few information.  Note: Im attaching one sample assignment in PDF for your reference and better understanding and document name is Old Sample Module Summary Paper  Please find the attachments below. Regards Naga Srinivas Chapter 6 Business-Level Strategy and the Industry Environment ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Learning objectives Identify the strategies managers can develop to increase profitability in fragmented industries. Discuss the special problems that exist in embryonic and growth industries and how companies can develop strategies to effectively compete. 2 ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Learning objectives Understand competitive dynamics in mature industries and discuss the strategies managers can develop to increase profitability even when competition is intense. Outline the different strategies that companies in declining industries can use to support their business models and profitability. 3 ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. fragmented industry Composed of a large number of small- and medium-sized companies. Reasons for fragmentation Lack of scale economies Brand loyalty in the industry is primarily local Low entry barriers due to lack of scale economies and national brand loyalty Focus strategy works best for a fragmented industry. 4 ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Consolidating a fragmented industry through value innovation Value innovator - Defines value differently than established companies. Offers the value at lowered cost through the creation of scale economies. Chaining: Obtaining the advantages of cost leadership by establishing a network of linked merchandising outlets. Interconnected by information technology that functions as one large company. Aids in building a national brand. 5 ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Consolidating a fragmented industry through value innovation Franchising: Strategy in which franchisor grants the franchisee the right to use the franchisor’s name, reputation, and business model. In return for a fee and a percentage of the profits. Advantages Finances the growth of the system, resulting in rapid expansion. Franchisees have a strong incentive to ensure that the operations are run efficiently. New offerings developed by a franchisee can be used to improve the performance of the entire system. 6 ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Consolidating a fragmented industry through value innovation Disadvantages Tight control of operations is not possible. Major portion of the profit go to the franchisee. When franchisees face a higher cost of capital, it raises system costs and lowers profitability. Horizontal mergers - Merging with or acquiring competitors and combining them into a single large enterprise. 7 ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. STRATEGIES IN EMBRYONIC AND GROWTH INDUSTRIES Limited customer demand for products of an embryonic industry is due to: limited performance and poor quality of the first products. customer unfamiliarity with the product. poorly developed distribution channels. lack of complementary products. high production costs because of small volumes of production. 8 ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. STRATEGIES IN EMBRYONIC AND GROWTH INDUSTRIES Industry enters the growth stage when a mass market starts to develop for its products. Mass market: One in which large numbers of customers enter the market. Occurs when: Product value increases, due to ongoing technological progress and development of complementary products. Production cost decreases, resulting in low prices and high demand. 9 ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 10 ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 11 ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. market development and customer groups 12 First to purchase and experiment with a product based on new technology. Innovators Understand that the technology may have important future applications. Early adopters Practical and understand the value of new technology. Early majority Purchase a new technology only when it is obvious that it has great utility and is here to stay. Late majority Unappreciative of the uses of new technology. Laggards ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 13 ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 14 ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Strategic implications: crossing the chasm New strategies are required to strengthen a company’s business model as a market develops. Customers in each segment have very different needs. Competitive chasm - Transition between the embryonic market and mass market. Failure to do so results in the company going out of business. 15 ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Strategic implications: crossing the chasm 16 Innovators and early adopters Technologically sophisticated and willing to tolerate the limitations of the product. Reached through specialized distribution channels. Companies produce small quantities of product that are priced high. Early majority Value ease of use and reliability. Require mass-market distribution and mass-media advertising campaigns. Require large-scale mass production to produce high-quality product at a low price. ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 16 17 ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Factors that accelerate customer demand 18 Degree to which a new product is perceived as better at satisfying customer needs than the product it supersedes. Relative advantage Products perceived as complex and difficult to use will diffuse more slowly than those that are easy to use. Complexity Degree to which a new product is perceived as being consistent with the current needs or existing values of potential adopters. Compatibility ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Factors that accelerate customer demand 19 Degree to which potential customers can experiment with a new product during a hands-on trial basis. Trialability Degree to which the results of using and enjoying a new product can be seen and appreciated by other people. Observability Lead adopters in a market who become infected with a product. Infect other people, making them adopt and use the product. Viral model of infection ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Strategies to Deter Entry In mature industries 20 Catering to the needs of all market segments to deter entry by competitors. Product proliferation strategy Charging a price that is lower than that required to maximize profits in the short run. Is above the cost structure of potential entrants. Limit price strategy Investments that signal an incumbent’s long-term commitment to a market or a segment of the market. Strategic commitments ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 21 ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Strategies to Manage Rivalry 22 Companies increase or decrease product prices to: convey their intentions to other companies. influence the price of an industry’s products. Price signaling When one company assumes the responsibility for determining the pricing strategy that maximizes industry profitability. Price leadership Use of product differentiation strategies to deter potential entrants and manage rivalry within an industry. Non-price competition ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Strategies to Manage Rivalry 23 Occurs when a company concentrates on expanding market share in its existing product markets. Market penetration Creation of new or improved products to replace existing products. Product development When a company searches for new market segments to increase the sale of its existing products. Market development Large companies in an industry have a product in each market segment. Product proliferation ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 24 ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Capacity Control Companies devise strategies to control or benefit from capacity expansion programs. Factors causing excess capacity. New technologies that produce more than the old ones. New entrants in an industry. Economic recession that causes global overcapacity. High growth of and demand in an industry that triggers rapid expansion. 25 ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 25 Capacity Control Choosing a strategy Each company individually must try to preempt its rivals. Companies must collectively coordinate with each to be aware of the mutual effects of their actions. 26 ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 27 ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Choosing a Strategy Leadership strategy: When a company develops strategies to become the dominant player in a declining industry. Niche strategy: When a company focuses on pockets of demand that are declining more slowly than the industry as a whole to maintain profitability. 28 ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Choosing a Strategy Harvest strategy: When a company reduces to a minimum the assets it employs in a business to reduce its cost structure and extract maximum profits from its investment. Divestment strategy: When a company decides to exit an industry by selling off its business assets to another company. 29 ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 30 ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 5: Business-Level Strategy ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Learning objectives Explain the difference between low-cost and differentiation strategies. Articulate how the attainment of a differentiated or low-cost position can give a company a competitive advantage. Explain how a company executes its business-level strategy through function-level strategies and organizational arrangements. 2 ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Learning objectives Describe what is meant by the term value innovation. Discuss the concept of Blue Ocean Strategy, and explain how innovation in business-level strategy can change the competitive game in an industry, giving the innovator a sustained competitive advantage. 3 ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Business-level strategy Overall competitive theme of a business. Way a company positions itself in the marketplace to gain a competitive advantage. Different positioning strategies that can be used in different industry settings. 4 ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Lowering costs Enables a company to: gain a competitive advantage in commodity markets. undercut rivals on price. gain market share. maintain or increase profitability. 5 ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. differentiation Distinguishing oneself from rivals by offering something that they find hard to match . Product differentiation is achieved through: superior reliability, functions, and features. better design, branding, point-of-sale service, after sales service, and support. Advantages Allows a company to charge a premium price. Helps a company to grow overall demand and capture market share from its rivals. 6 ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 7 ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 8 ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. the differentiation-low cost tradeoff Efficiency frontier Shows all the positions a company can adopt with regard to differentiation and low cost. Has a convex shape because of diminishing returns. Multiple positions on the differentiation-low cost continuum are viable. Have enough demand to support an offering. 9 ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. the differentiation-low cost tradeoff To get to the efficiency frontier, a company must: pursue the right functional-level strategies. be properly organized. ensure its business-level strategy, functional-level strategy, and organizational arrangement align with each other. 10 ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Value innovation Occurs when innovations push out the efficiency frontier in an industry, enabling greater value to be offered through superior differentiation. At a lower cost than was thought possible. Enable a company to outperform its rivals for a long period of time. 11 ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 12 ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Market segmentation Decision of a company to group customers based on important differences in their needs to gain a competitive advantage. Standardization strategy - Producing a standardized product for the average customer, ignoring different segments. Segmentation strategy - Producing different offerings for different segments, serving many segments or the entire market. Focus strategy - Serving a limited number of segments or just one segment. 13 ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Comparison of Market segmentation approaches 14 ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Standardization strategy Associated with lower costs than a segmented strategy Segmentation strategy Involves customization of product offerings, which drive up costs as: Focus strategy Attempts to attain economies of scale through high sales volume achieving economies of scale is difficult. production and delivery costs tend to be high. Have a higher cost structure as: new product features and functions need to be added. attaining economies of scale is difficult. business-level strategies 15 Give a company specific form of competitive position and advantage in relation to its rivals Results in above-average profitability Generic business-level strategy Lowering costs in order to lower prices and still make a profit Broad low-cost strategy When a company differentiates its product in some way Broad differentiation strategy Targeting a certain segment or niche and trying to be the low-cost player in that niche Focus low-cost strategy ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Business-level strategy, industry, and competitive advantage 16 ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Low-cost companies Charge low prices and still make profits Absorb cost increases from suppliers Offer deep discount prices for buyers Differentiated companies Withstand pricing pressure from powerful buyers and increase prices without buyer resistance Absorb price increases from suppliers and pass them to customers without losing market share Withstand substitute goods, as a result of brand loyalty 17 ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 18 ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Lowering costs through functional strategy and organization Achieve economies of scale and learning effects Adopt lean production and flexible manufacturing technologies Implement quality improvement methodologies to produce reliable goods. Streamline processes Use information systems to automate business process 19 ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Lowering costs through functional strategy and organization Implement just-in-time inventory control systems. Design products with a focus on reducing costs. Increase customer retention. Ensure that the organization’s structure, systems, and culture reward actions that lead: higher productivity. greater efficiency. 20 ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Differentiation through functional-level strategy and organization Customize product offering and marketing mix to different market segments. Design product offerings that have a high perceived quality regarding their: functions. features. performance. reliability. Handle and respond to customer queries and problems promptly. 21 ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Differentiation through functional-level strategy and organization Focus marketing efforts on: brand building. perceived differentiation from rivals. Ensure employees act in a manner consistent with the company’s image. Create the right organizational structure, controls, incentives, and culture. Ensure that the control systems, incentive systems, and culture align with the strategic thrust. 22 ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Blue ocean strategy Successful companies build their competitive advantage by redefining their product offering through value innovation. Creating a new market space. Blue Ocean - Wide open market space where a company can chart its own course. 23 ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Blue ocean strategy To redefine its market and create a new business-level strategy, a company must: eliminate factors that rivals take for granted, and reduce costs. reduce certain factors below industry standards, and lower costs. raise certain factors above industry standards, and increase value. create factors that rivals do not offer, and increase value. 24 ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2 Model 2 Summary Paper Model 2 Summary Paper NAGA SRINIVAS GUNTUPALLI Harrisburg University MGMT 510 50 B Business Strategy and Management Principles Dr. Stanley Nwoji August 9th, 2021 Abstract This paper talks about the summarization of the lessons learned from the module 2 i.e. business level strategies and concepts learned from the lectures. Paper mainly focuses from the learning objectives under business level strategies from the three chapters covered in the class which are taught by the professor. Paper mainly covers the detailed overview of summary of the topics covered in the module. 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. 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 by highlighting everything to the point and relevance. Introduction The module 2 summary paper explains about all the concepts learned from the three chapters involved in strategic management course. The concepts are derived from chapters namely business-level strategy, the industry environment, strategy, and technology. 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. Summary of the topics covered in the module · Low-cost and differentiation strategies difference. · Company executes its business-level strategy through function-level strategies and organizational arrangements. · Companies developing strategies to effectively compete. · The strategies that firms can use to establish their technology as the standard in a market. 4 Concepts under Low-cost and differentiation strategies difference. 4 Concepts under Company executes its business-level strategy through function-level strategies and organizational arrangements 4 Concepts under Companies developing strategies to effectively compete. 4 Concepts of strategies that firms can use to establish their technology as the standard in a market. Summary of the topics covered in the module Concepts learned from each topic in the module Model 1 Summary Paper 1 Model 1 Summary Paper NAGA SRINIVAS GUNTUPALLI Harrisburg University MGMT 510 50 B Business Strategy and Management Principles Dr. Stanley Nwoji August 2nd, 2021 Model 1 Summary Paper 2 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. Model 1 Summary Paper 3 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 Model 1 Summary Paper 4 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. Model 1 Summary Paper 5 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. Model 1 Summary Paper 6 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 Model 1 Summary Paper 7 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 Model 1 Summary Paper 8 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 Model 1 Summary Paper 9 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 Model 1 Summary Paper 10 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 Model 1 Summary Paper 11 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. Model 1 Summary Paper 12 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. Model 1 Summary Paper 13 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 https://www.garyfox.co/cost-structure/ Model 1 Summary Paper 14