Strategic Plan, Part 3: Strategic
Owens Corning develops and produces
insulation, fiberglass composites, and roofing in the global market. The
company has five potential business strategies that it can use to plan their
function in the business operations. The strategies enable the company to
cooperate the different department. Monitoring the product strategies is to review
the business level strategy to implement in their action (Bui, & de
Villiers, 2017). The review involves the economic acquisition resources,
equipment used to produce goods and services, business facilities and other
administrative costs. As a result, the paper will review the nature and
implications of business strategies that could improve the strategic success
and performance of Owens Corning.
In the roofing business, Owens Corning
needs to implement comprehensive business level strategies. Owens Corning will
adopt both the cost leadership and differentiation strategies. These two
business level strategies will help the company to create a competitive
advantage over its close competitors (Amran, Ooi, Mydin, & Devi, 2015). The
companies might also select to compete in the broader market which is critical.
However, the integrated strategy of both the cost leadership and the
differentiation strategy are vital.
Cost Leadership Strategy
The cost leadership strategy seeks to
compete for the customers through setting better prices. Reasonable pricing of
the products is vital in promoting the internal efficiency, which is useful in
developing the continuous efforts. Utilize human resources is a strategy that
implements the utilization of human resources in the organization (Zaefarian,
Henneberg, & Naudé, 2013). The form of human labor enables the organization
to reach their goals and objectives. The strategy ensures the organization has
enough employees to produce a specific output of goods or services. The
business strategy is supposed to get the right type of human labor to acquire
the business operations. An analysis is included in the determination of labor,
whether both skilled and unskilled is required for the completion of the organizations
to finish the company’s organization functions. As a result, Owens Corning will
rely on the cost leadership approach and strategy to improve the
competitiveness of the company in the entire market.
The differentiation strategy of the
company is useful in giving the customers some unique qualities useful in
promoting product innovation and management of the company’s brand image. The
creation of customer value is created through promoting sustainability,
lowering the buyer’s costs and improving the buyer’s performance. It would also involve the coordination of the
unit activities. The unit activities are broken down by each department with
sections of the department and individual positions in the organization
(Kernbach, Eppler, & Bresciani, 2015). The manager gets the responsibility
of bringing the employees of an organization to focus on the organization’s
goals. The manager allocates the resources as one of the entitled
responsibilities and in different activities. The organization role in the
coordinate unit activities is to provide objectives with the manager
coordinating every activity including the allocation of resources.
The distinctive advantages are the
strategy of leading to a successful organization. The organizations singular
activities are the core competencies and the competitive advantages to ensure
better provision of services. The strategy includes the acquisition of economic
resources at a lower cost than other organizations (Kernbach, Eppler, &
Bresciani, 2015). The strategy employs the production of highly effective and
efficient products, providing unique goods and services different from other
organizations. The organizations also rely on a supply chain that is cost
effective and gets the final products to the customers fast.
Other corporate level strategies for Owens
Corning include the user identification of the market niches. It involves
conducting of economic analysis to determine market demand in specific that is
not is open. The strategy involves the modification of an existing product,
targeting a specific group in the population (Bui & Villiers, 2017). The
organization is allowed to charge higher consumer prices due to the absence of
substitute products in the economy. Monitoring the product strategies is to
review the business level strategy to implement in their operation. The review
involves the economic acquisition resources, equipment used to produce goods
and services, business facilities and other administrative costs (Amran, Ooi,
Mydin, & Devi, 2015). The business
level strategy gives the company opportunity to be flexible in the business.
The organization potential corporate
strategy includes value-creating, value-neutral, and value-reducing strategy.
The value-creating strategy seeks to remove competitors from the gaining more
market share. The strategy is to seek to add value in the business products and
services in the exploitation of economic. The resources and capabilities of the
business are supposed to be shared in and within the organization (Bui &
Villiers, 2017). Diversification is the
main objective in the strategy that offering products to consumers among the
market to dominate the market share.
The other corporate level is a
value-neutral strategy. The organization is not concerned about the allocation
of the resources and the employment force. The organization secures a current
place in the market (Amran, Ooi, Mydin, & Devi, 2015). Owens Corning can
shore up their organizational plans. The value-neutral approaches include the
initiation of regulatory oversight, the creation of synergy between departments
of the organization, working to reduce risk and securing a steady cash flow in
The value-reducing strategy is the other
corporate strategy. The strategy is necessary when the organization widens the
level getting the stakeholders and the consumers to perceive the organization
to be large (Serra & Kunc, 2015). The strategy focuses on the business
market in the determining a specific group of the population and preventing
harmful and unnecessary growth.
It is recommendable for Owens Corning to
implement a transnational strategy. The
multinational strategy can be described as the integration of the localization
strategy with the comprehensive standardization approach (Kernbach, Eppler,
& Bresciani, 2015). The combination of the two strategies creates the
transnational strategy that is highly responsiveness and the lowest cost
Owens Corning will be able to expand their
local markets as the strategy emphasizes the needs to target the local markets.
It ensures that the products are localized in a manner that improves the
acceptance in the local and regional markets. The implementation of the
transnational strategy is critical in implementing a global strategy and focus
for the company. It is also highly customized to meet the local market needs. As
a result, Owens Corning should resign its products and take its products
globally through the transnational global strategy.
Owens Corning should implement a
combination of the cost leadership approach and the transnational strategy.
Both the strategy will ensure that the company is more competitive in the local
and international markets. For example, the strategies will set products prices
which are affordable to the customers both locally and internationally
(Zaefarian, Henneberg, & Naudé, 2013). It is because the transnational
strategy is a global program that emphasizes on the standardization for the
products of the company, which is highly vital.
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