Chapter 6 Corporate-Level Strategies

In: Business and Management

Submitted By charlisyuen
Words 5817
Pages 24
CHAPTER 6

Corporate-Level Strategies

Learning Objectives

CONTENTS

After reading this chapter, you should be able to:

Introduction

1. Understand corporate strategy and identify its components.

Corporate Strategy

2. Evaluate and identify different approaches to corporate strategy development.

The Portfolio Approach

3. Understand how organisations can create and sustain the multibusiness advantage.

Corporate Strategy and
Adding Value

4. Appreciate how different corporate strategies could add value to a corporation.
5. Appreciate the complexities of developing corporate strategy at the international level. The Core Competence
Approach
Creating and Sustaining the Multibusiness
Advantage
Corporate-Level Strategy in the International
Perspective
Summary
Study Questions
References and Further
Readings

109

110 CHAPTER 6:

Corporate-Level Strategies

Opening Case
The case study organisation is one of the largest international hotel chains operating in more than one hundred countries with its internationally recognised brands. However, the company does not have a culturally diverse workforce at the senior level. It usually recruits executives to the key decision-making positions either from the United Kingdom or the United States.
In this respect, it is defined as Anglo-Saxon. Some people argue that the company should get the best from other nationalities involved in the development of an organisation’s strategy. Different nationalities holding senior positions in the company would not only facilitate the organisation’s understanding about foreign markets but would also help the company to start thinking more in a non-Anglo-Saxon way of doing business in different country markets.
Indeed, in this organisation, the U.S. and U.K. activities have been used as benchmarks for doing business in other
country…...

Similar Documents

Business- Level and Corporate- Level Strategies

...lifestyle/boutique, signature, select services and extended stay. Marriott own chains such as Marriott Hotels & Resorts, Courtyard by Marriott, Residents Inn, Fairfield Inn, and Marriott Vacation Club International, BVLGARI, The Ritz Carlton just to name a few. The commonality between all of the properties that Marriott International owns is that they all have a clear business-level strategy that allows them to focus on particular customer groups. Analyze the business strategies for the corporation you chose to determine the business level strategy you think is most important to the long –term success of the firm and whether or not you judge this to be a good choice. Justify your opinion. Marriott business strategies vary depending on the lodging segment. Examples include the Residents Inn is focused on customers that need amenities that go beyond the average but allow the traveler to have a sense of freedom, like they are at home or the Marriott Vacation Club International, which is classified as a luxury timeshare operation. The Fairfield Inn chain is currently using a focused cost leadership business-level strategy. In Fairfield Inns, there are several things that allow the Marriott Company to control cost and offer accommodations at a reduced rate to customers. There are usually no full-scale restaurants within in the main hotel. This means that the company does not have to employ staff to run it, which is costly to the bottom line. Also, the company uses value......

Words: 1619 - Pages: 7

Corporate Level Strategy Article Synopsis

...Chapter 10 – Increasing Profitability through Diversification CORPORATE LEVEL STRATEGY ARTICLE SYNOPSIS References/ Retrieved from: http://www.forbes.com/sites/arieladams/2013/03/14/montblanc-on-how-to-be-a-luxury-brand-for-many/ Ariel Adams is an Author and a Forbes Contributor Just to tell you a little about him, he covers both timepieces and other luxury items that interest him, such as cars and technology. He states that he has an unshakable interest in wrist watches mixed with a passion for curiosity afforded him the opportunity to make them his career. He has spent a lot of his time traveling internationally to Europe to meet with esteemed watch makers and to get a hands-on look at many of the rare and interesting timepieces and items he both loves and write’s about. CEO of Montblanc is Lutz Bethge The reason why Adams interviewed Mr. Lutz Bethge was due to the fact that he was curious how he maintained this strong image while diversify its products line that ranges from pens and watches to leather goods and fragrances, while still offering something for customers at the very top. Here is just a little of what Mr. Bethge had to say in reference to that: CEO Lutz Bethge states his company’s strategy for successfully diversifying its product line with new categories such as leather goods and timepieces, was due to the fact that they could rely on the trust of our customers, who believed in Montblanc as a brand that provided not only excellence in its core......

Words: 466 - Pages: 2

Business-Level and Corporate Level Strategies

...Business-Level and Corporate Level Strategies General Motors (GM) is a public company based in the United States that is headquartered in Detroit, Michigan. In the year 2011, the company was able to acquire the title of the largest automaker in the world by achieving the highest number of vehicle unit sales since inception (General Motors, 2012). General Motors led global automobile unit sales for 77 consecutive years from 1931 through 2007; however, the company lost its position to Toyota, which has continued to dominate the market with GM standing at second. The core competencies of a corporate corporation are focused on ensuring that the business entity is able to satisfy the needs and preferences of their customers. This stands as the main determinant in realizing above average returns especially in a highly competitive business environment. This is achieved through business level strategies, which are strategies that outline the various actions to be taken in order to ensure that the company is able to provide value to its customers in addition to gaining the critical competitive advantage by utilizing its core competencies in specific, service markets or individual products. Business level strategy therefore pertains to the corporation’s firm position in its operating industry compared to its main competitors and the five forces of competition. One of the fundamental business level strategies that General Motors has employed is cost leadership. The company has...

Words: 1619 - Pages: 7

Bus 499 Assignment 3: Business-Level and Corporate-Level Strategies

...Professor Rufus Robinson Assignment 3: Business-Level and Corporate-Level Strategies Business 499 February 17, 2014 The business that I chose to research is General Electric. GE is one of the oldest and largest businesses in the United States. They are ranked #26 largest firm in the U.S and the 14th most profitable. GE is a massive, diversified and profitable conglomerate with a lot of very good but unrelated businesses. GE has expanded to incorporate television, airplane engines, medical devices, household appliances and commercial financing. Analyzing GE’s business-level strategy is somewhat difficult being that GE has so many different divisions. Any of these products would serve as a large and viable business on its own but GE has them all under one corporate umbrella. GE’s business level strategy states “GE is building the world by providing capital, expertise and infrastructure for a global economy. GE Capital has provided billions in financing so businesses can build and grow their operations and consumers can build their financial futures. We build appliances, lighting, power systems and other products that help millions of homes, offices, factories and retail facilities around the world work better.” Figure 1 GE’s Organizational Structure and Business Portfolio. 2001 Figure 2 GE’s Organizational Structure and Business Portfolio. 2007 What is most important to the long-term success of GE is long term growth and investing in innovative......

Words: 1209 - Pages: 5

Bus 499 Assignment 3 Business Level and Corporate Level Strategies

...BUS 499 Assignment 3 Business Level and Corporate Level Strategies To Buy this Class Copy & paste below link in your Brower http://www.homeworkregency.com/downloads/bus-499-assignment-3-business-level-corporate-level-strategies/ Or Visit Our Website Visit : http://www.homeworkregency.com Email Us : homeworkregency@gmail.com BUS 499 Assignment 3 Business Level and Corporate Level Strategies Choose an industry you have not yet written about in this course, and one publicly traded corporation within that industry. Research the company on its own Website, the public filings on the Securities and Exchange Commission EDGAR database (http://www.sec.gov/edgar.shtml), in the University’s online databases, and any other sources you can find. The annual report will often provide insights that can help address some of these questions. Write a six to eight (6-8) page paper in which you: 1. Analyze the business-level strategies for the corporation you chose to determine the business-level strategy you think is most important to the long-term success of the firm and whether or not you judge this to be a good choice. Justify your opinion. 2. Analyze the corporate-level strategies for the corporation you chose to determine the corporate-level strategy you think is most important to the long-term success of the firm and whether or not you judge this to be a good choice. Justify your opinion. 3. Analyze the competitive environment to determine the corporation’s most significant......

Words: 7650 - Pages: 31

Bus 499 Assignment 3 Business Level and Corporate Level Strategies

...BUS 499 Assignment 3 Business Level and Corporate Level Strategies To Buy this Class Copy & paste below link in your Brower http://www.homeworkregency.com/downloads/bus-499-assignment-3-business-level-corporate-level-strategies/ Or Visit Our Website Visit : http://www.homeworkregency.com Email Us : homeworkregency@gmail.com BUS 499 Assignment 3 Business Level and Corporate Level Strategies Choose an industry you have not yet written about in this course, and one publicly traded corporation within that industry. Research the company on its own Website, the public filings on the Securities and Exchange Commission EDGAR database (http://www.sec.gov/edgar.shtml), in the University’s online databases, and any other sources you can find. The annual report will often provide insights that can help address some of these questions. Write a six to eight (6-8) page paper in which you: 1. Analyze the business-level strategies for the corporation you chose to determine the business-level strategy you think is most important to the long-term success of the firm and whether or not you judge this to be a good choice. Justify your opinion. 2. Analyze the corporate-level strategies for the corporation you chose to determine the corporate-level strategy you think is most important to the long-term success of the firm and whether or not you judge this to be a good choice. Justify your opinion. 3. Analyze the competitive environment to determine the corporation’s most significant......

Words: 5950 - Pages: 24

Corporate Level Strategy

...Corporate Level Strategy: SIPCHEM identified its vision which state as "Challenging assumption every day to discover and develop responsible solution, enhancing quality of life for generation to come". The mission of SIPCHEM is "To grow our capability and reach by constantly pushing the boundaries that inspire, enhance and sustain excellence". The vision and the mission of SIPCEM give us idea of how the company sets its strategy and plan to achieve its objectives. SIPCHEM sets its strategy depending on the following elements; * Increasing the production capacity and optimizing operation capability for affiliate plant. * Developing long-term relationships with vendors and clients to minimize the operational costs gaining competitive advantage. * Continuity of development and improvement in quality of products through R&D operations and applications by the best international standards. * Reducing costs to enhance competitiveness among the competitors. * Long-term investment by increasing the efficiency and capability to work of Saudi manpower which reflects positively on company’s performance. * Expansion in the variety of SIPCHEM products via investments in downstream projects and other projects associated with the industry. The main strategy of SIPCHEM is focusing on enhancing core competence, building new capability and extending geographically while maintaining the quality and efficiency in production. SIPCHEM analyzes available......

Words: 421 - Pages: 2

Bus 499 Week 6 Assignment 3 Business-Level and Corporate-Level Strategies

...BUS 499 WEEK 6 ASSIGNMENT 3 BUSINESS-LEVEL AND CORPORATE-LEVEL STRATEGIES To buy this click here http://www.coursehomework.com/product/bus-499-assignment-3-business-level-and-corporate-level-strategie/ Contact us:+1 315-750-4434 help@coursehomework.com BUS 499 WEEK 6 ASSIGNMENT 3 BUSINESS-LEVEL AND CORPORATE-LEVEL STRATEGIES - A+ WORK Assignment 3: Business-Level and Corporate-Level Strategies Choose an industry you have not yet written about in this course, and one publicly traded corporation within that industry. Research the company on its own Website, the public filings on the Securities and Exchange Commission EDGAR database (http://www.sec.gov/edgar.shtml), in the University’s online databases, and any other sources you can find. The annual report will often provide insights that can help address some of these questions. Write a six to eight (6-8) page paper in which you: 1. Analyze the business-level strategies for the corporation you chose to determine the business-level strategy you think is most important to the long-term success of the firm and whether or not you judge this to be a good choice. Justify your opinion. 2. Analyze the corporate-level strategies for the corporation you chose to determine the corporate-level strategy you think is most important to the long-term success of the firm and whether or not you judge this to be a good choice. Justify your opinion. 3. Analyze the competitive environment to determine the......

Words: 429 - Pages: 2

Bus 499 Assignment 3 Business-Level and Corporate-Level Strategies

...    BUS 499 Assignment 3 Business-Level and Corporate-Level Strategies   IF You Want To Purchase A+ Work Then Click The Link Below , Instant Download http://acehomework.com/BUS499-Assignment-3-Business-Level-and-Corporate-Level-Strategie-234523.htm?categoryId=-1 If You Face Any Problem E- Mail Us At JohnMate1122@gmail.com Assignment 3: Business-Level and Corporate-Level Strategies     Choose an industry you have not yet written about in this course, and one publicly traded corporation within that industry. Research the company on its own Website, the public filings on the Securities and Exchange Commission EDGAR database (http://www.sec.gov/edgar.shtml), in the University’s online databases, and any other sources you can find. The annual report will often provide insights that can help address some of these questions.   Write a six to eight (6-8) page paper in which you: 1.    Analyze the business-level strategies for the corporation you chose to determine the business-level strategy you think is most important to the long-term success of the firm and whether or not you judge this to be a good choice. Justify your opinion. 2.    Analyze the corporate-level strategies for the corporation you chose to determine the corporate-level strategy you think is most important to the long-term success of the firm and whether or not you judge this to be a good choice. Justify your opinion. 3.    Analyze the competitive environment to determine the corporation’s......

Words: 427 - Pages: 2

Business-Level and Corporate-Level Strategies

...corporation. McDonald’s business strategies has been said to be the best in the fast food industry, maintaining cost leadership while producing dependable food with great service. Today we see McDonald’s in a mature industry that uses product proliferation to meet many needs in the fast food industry while deterring new entrants (Hill and Jones, 205). McDonald’s prides their strategy by setting the standards with their products and within the industry as well. I feel that the strategy McDonald’s incorporates within the company is the best for them, setting the standard to be the best in the industry promotes the necessary competitive edge needed to ensure the company continues to delivery its winning edge products that keeps customers loyal to the name. McDonald’s is also known for their child meal concepts selling hamburgers French fries soft drinks breakfast items chicken sandwiches and deserts. McDonald’s business level strategy also responds to the competitive dynamics of the industry by innovating new products, such as the Snack Wrap, market penetration, such as into the breakfast industry, product proliferation, such as burgers, and market development such as the McCafe with specialty coffees (Hill and Jones, 209-211). McDonald’s also carefully select who they market their product to as well as the locations and how they market the products depending on what country they are providing services to. McDonalds corporate level strategies are used to elevate......

Words: 1107 - Pages: 5

Bus 499 Assignment 3 Business Level and Corporate Level Strategies

...BUS 499 Assignment 3 Business Level and Corporate Level Strategies To Buy this Class Copy & paste below link in your Brower http://homeworkregency.com/downloads/bus-499-assignment-3-business-level-corporate-level-strategies/ Or Visit Our Website Visit : http://www.homeworkregency.com Email Us : homeworkregency@gmail.com BUS 499 Assignment 3 Business Level and Corporate Level Strategies Choose an industry you have not yet written about in this course, and one publicly traded corporation within that industry. Research the company on its own Website, the public filings on the Securities and Exchange Commission EDGAR database (http://www.sec.gov/edgar.shtml), in the University’s online databases, and any other sources you can find. The annual report will often provide insights that can help address some of these questions. Write a six to eight (6-8) page paper in which you: 1. Analyze the business-level strategies for the corporation you chose to determine the business-level strategy you think is most important to the long-term success of the firm and whether or not you judge this to be a good choice. Justify your opinion. 2. Analyze the corporate-level strategies for the corporation you chose to determine the corporate-level strategy you think is most important to the long-term success of the firm and whether or not you judge this to be a good choice. Justify your opinion. 3. Analyze the competitive environment to determine the corporation’s most significant......

Words: 428 - Pages: 2

Bus 499 Assignment 3 Business Level and Corporate Level Strategies

...BUS 499 Assignment 3 Business Level and Corporate Level Strategies To Buy this Class Copy & paste below link in your Brower http://homeworkregency.com/downloads/bus-499-assignment-3-business-level-corporate-level-strategies/ Or Visit Our Website Visit : http://www.homeworkregency.com Email Us : homeworkregency@gmail.com BUS 499 Assignment 3 Business Level and Corporate Level Strategies Choose an industry you have not yet written about in this course, and one publicly traded corporation within that industry. Research the company on its own Website, the public filings on the Securities and Exchange Commission EDGAR database (http://www.sec.gov/edgar.shtml), in the University’s online databases, and any other sources you can find. The annual report will often provide insights that can help address some of these questions. Write a six to eight (6-8) page paper in which you: 1. Analyze the business-level strategies for the corporation you chose to determine the business-level strategy you think is most important to the long-term success of the firm and whether or not you judge this to be a good choice. Justify your opinion. 2. Analyze the corporate-level strategies for the corporation you chose to determine the corporate-level strategy you think is most important to the long-term success of the firm and whether or not you judge this to be a good choice. Justify your opinion. 3. Analyze the competitive environment to determine the corporation’s most significant......

Words: 429 - Pages: 2

Bus 499 Assignment 3 Business Level and Corporate Level Strategies

...Assignment 3 Business Level and Corporate Level Strategies http://homeworkfy.com/downloads/bus-499-assignment-3-business-level-corporate-level-strategies/ To Get this Tutorial Copy & Paste above URL Into Your Browser Hit Us Email for Any Inquiry at: Homeworkfy@gmail.com Visit our Site for More Tutorials: (http://homeworkfy.com/ ) Choose an industry you have not yet written about in this course, and one publicly traded corporation within that industry. Research the company on its own Website, the public filings on the Securities and Exchange Commission EDGAR database (http://www.sec.gov/edgar.shtml), in the University’s online databases, and any other sources you can find. The annual report will often provide insights that can help address some of these questions. Write a six to eight (6-8) page paper in which you: 1. Analyze the business-level strategies for the corporation you chose to determine the business-level strategy you think is most important to the long-term success of the firm and whether or not you judge this to be a good choice. Justify your opinion. 2. Analyze the corporate-level strategies for the corporation you chose to determine the corporate-level strategy you think is most important to the long-term success of the firm and whether or not you judge this to be a good choice. Justify your opinion. 3. Analyze the competitive environment to determine the corporation’s most significant competitor. Compare their strategies at each level and evaluate......

Words: 419 - Pages: 2

Bus 499 Week 6 Assignment 3 Business-Level and Corporate-Level Strategies

...BUS 499 WEEK 6 ASSIGNMENT 3 BUSINESS-LEVEL AND CORPORATE-LEVEL STRATEGIES To purchase this, Click here http://www.activitymode.com/product/bus-499-assignment-3-business-level-and-corporate-level-strategie/ Contact us at: SUPPORT@ACTIVITYMODE.COM BUS 499 WEEK 6 ASSIGNMENT 3 BUSINESS-LEVEL AND CORPORATE-LEVEL STRATEGIES - A+ WORK Assignment 3: Business-Level and Corporate-Level Strategies Choose an industry you have not yet written about in this course, and one publicly traded corporation within that industry. Research the company on its own Website, the public filings on the Securities and Exchange Commission EDGAR database (http://www.sec.gov/edgar.shtml), in the University’s online databases, and any other sources you can find. The annual report will often provide insights that can help address some of these questions. Write a six to eight (6-8) page paper in which you: 1. Analyze the business-level strategies for the corporation you chose to determine the business-level strategy you think is most important to the long-term success of the firm and whether or not you judge this to be a good choice. Justify your opinion. 2. Analyze the corporate-level strategies for the corporation you chose to determine the corporate-level strategy you think is most important to the long-term success of the firm and whether or not you judge this to be a good choice. Justify your opinion. 3. Analyze the competitive environment to determine the corporation’s most......

Words: 2130 - Pages: 9

Bus 499 Assignment 3 Business Level and Corporate Level Strategies

...BUS 499 Assignment 3 Business Level and Corporate Level Strategies To Buy this Class Copy & paste below link in your Brower http://homeworkregency.com/downloads/bus-499-assignment-3-business-level-corporate-level-strategies/ Or Visit Our Website Visit : http://www.homeworkregency.com Email Us : homeworkregency@gmail.com BUS 499 Assignment 3 Business Level and Corporate Level Strategies Choose an industry you have not yet written about in this course, and one publicly traded corporation within that industry. Research the company on its own Website, the public filings on the Securities and Exchange Commission EDGAR database (http://www.sec.gov/edgar.shtml), in the University’s online databases, and any other sources you can find. The annual report will often provide insights that can help address some of these questions. Write a six to eight (6-8) page paper in which you: 1. Analyze the business-level strategies for the corporation you chose to determine the business-level strategy you think is most important to the long-term success of the firm and whether or not you judge this to be a good choice. Justify your opinion. 2. Analyze the corporate-level strategies for the corporation you chose to determine the corporate-level strategy you think is most important to the long-term success of the firm and whether or not you judge this to be a good choice. Justify your opinion. 3. Analyze the competitive environment to determine the corporation’s most significant......

Words: 429 - Pages: 2