Aberystwyth University ?Strategic Proposal Paper

User Generated

Nepuv

Business Finance

Aberystwyth University

Description

Please make a Sterling Construction Company, Inc.'s  Strategic Proposal 

I need the Strategic Proposal of Business-Level Cooperative Strategy and Organizational Structure, there are two parts 

1. Strategic Proposal of Business-Level Cooperative Strategy

2. Strategic Proposal of Organizational Structure 

Explanation & Answer:
3 pages
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Explanation & Answer

Attached.

Running Head: STERLING CONSTRUCTION COMPANY, INC. STRATEGIC PROPOSAL 1

Sterling Construction Company, Inc. Strategic Proposal
Name
Institutional Affiliation

STERLING CONSTRUCTION COMPANY, INC. STRATEGIC PROPOSAL

2

Strategic Proposal of Business-Level Cooperative Strategy
Applying Porter’s Generic competitive strategies, a combine low-cost leadership and
differentiation are suitable for Sterling Construction. To lower its cost of production, Sterling
should pursue proprietary technology, economies of scale, replacing the experience curve with
network scale economies, and preferential access to raw materials and other factors of
productions (Brett, 2018). Focusing on economies will enable Sterling to enjoy the cost
advantage experienced. The cost advantage occurs as a result of the inverse relationship between
large quantity produced and per-unit fixed cost. The greater the quantity of output produced by
Sterling, the lower the per-unit fixed cost. Economies of scale trigger a decline in average
variable costs due to an increase in production output. An increase in the scale of production
arises due to synergies and operational efficiencies. Replacing the experience curve with network
scale economies helps the company to cut costs that arise when the total value-added costs are
lower than Sterling’s experience producing products.
Preferential access to raw materials lowers the cost because it allows Sterling to acquire
raw materials and other factors of production at cheaper prices as compared to its competitors.
Preferential access to raw materials can be achieved by building networks of global suppliers.
Relying on global suppliers means that Sterling will not run out of materials and...


Anonymous
Just what I was looking for! Super helpful.

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