ACCA SBL Syllabus C. Strategy - Strategy in different contexts - Notes ^{9 / 10}

Small Business

Limited number of markets and limited number of products
Scope of Operation = less of a strategic issue

Analysis and research = no departments, all performed by the owners often

Competitive strategy = VERY important

Strategy choice = often limited (depends greatly on owner) but 
financing issues will become key

Multinationals

Diverse products and geography

Issues of structure and control = very important (Does HQ add or detract value?)

At SBU level - very similar to small business above

How to allocate resources = very important

Co-ordination of operations is a big strategic issue

Manufacturing and Service

Competitive strategy for a service firm = wider aspects of the organisation 

e.g. Swiftness of service, ambience, staff attitude etc

Competitive advantage of a manufacturing firm = the product itself (though many customers believe products to be similar so again the differentiation comes from the wider aspects of the organisation)

Nationalised Companies

Strategy influenced greatly from external sources 
e.g. Government

Greater tendency towards centralised control and reporting

Public Service Organisations (eg Health and Bus Services)

Often struggle to create surpluses to re-invest

This can lead to mediocrity of service

Allocation of resource becomes very important