Business and Corporate Level Strategies

Vertical integration is a strategy used by a company to gain control over its suppliers or distributors in order to increase the firm’s power in the marketplace, reduce transaction costs and secure supplies or distribution channels.

Supply Chain Management Chapter 5 Network Design in the Supply Chain 5-1 Outline A strategic framework for facility location Multi-echelon networks Gravity methods for location Plant location models 5-2 1. Network Design Decisions  Facility role: What role should each facility play? What processes should be performed at each facility?

Corporate level strategy can be defined as the master plan that decided by the top management for the whole company and also the organisation’s strategic business units. With the help of corporate level strategies, an organization or company can determines and indicates what business it should be in, which path it should follow and also which role should be played by respective business units in order to pursue respective direction. By the way, corporate level strategies can be divided into three types which are growth strategy, stability strategy and also renewal strategy.

The choice of business level strategy forms an integral part of strategic decision making. Strategy formalises the route that the organisation will take to reach its final destination. When strategic decision makers decide on a business level strategy, they have to consider the various factors that affect the choice. These factors include the organisation’s overall strategic direction, strengths, weaknesses, capabilities, opportunities, and competitive forces in the industry. An organisation can use several tools to evaluate the various strategies to assist strategic decision makers to make the correct choices that will ensure sustainability and survival in the long term.

Gerry, Richard and Scholes (2011) defines strategy as the long term direction of an organization. Thus, the long-term strategy of University of Aberdeen (AU) is to be the leading universities of the world as seen in their ambition statement.

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unit in order to make each unit more competitive in its market-place (Collin 2004). These

* Marketing-related Concentric Diversification: When a similar type of product is offered with the help of unrelated technology

SK Telecom remained mixed structure, but the structure of the geographical division was reinforced by the establishment of the headquarters in China to more effectively adapt to the local market. Moreover, even full business sector C & I were transplanted in China. In the process of transplantation seats and many key people who have moved to China. This can be described as SKT strengthen their power in China. This can be interpreted that centralize your organization.

Innovation gives an extensive variety of tools entrepreneurs can use to guide their new organizations through the start-up and development stages. Small business accounting, advertising and communication have been upset by advances in computer, network and communication innovations, and organizations in a scope of businesses persistently adjust to exploit innovative advancements.

A business strategy is a set of important choices which outline long term aim and objective for the business, its value proposal in the market, how the company plans to build and sustain a competitive advantage and organisation of themselves (Lasserre, 2012, pg.29). The determination of business strategies is to develop and maintain a competitive business scheme in selecting the right market which can lead to economic value establishment. Economic

The generic strategies include cost leadership, differentiation and focus apply in business unit level. Generally, the cost leadership strategy never applicable in luxury industry. This is because most of the consumer purchasing luxury goods do not care about price point.

Strategy formulation refers to the process of choosing the most appropriate course of action for the realization of organizational goals and objectives and thereby achieving the organizational vision. Strategy formulation is a part of a strategic management process that comprises of environmental analysis, formulation, implementation and evaluation and control. Strategic management is an ongoing process to develop and revise future-oriented strategies that allow an organization to achieve its objectives, considering its capabilities, constraints, and the environment in which it operates.

The advantages of being a low cost leader are, charging a lower price in order to increase the sales volume of our products, allowing our company to stay consistent with our profit making, as well as increasing our Economies of scale. Being that a certain segment of customers only shop at retail stores that offer the lowest possible price. When all aspects of the industry are the same, customers usually pick the lowest priced product. This is the foundation of the cost leader strategy that relies on lowering prices to a specific point in order to beat the competition and still retain profits.

Business strategy communicates the competitive nature of the business, from who they should serve, what needs should be met, and development of the organization’s core competencies (Parnell, 2014). Another aspect, the business strategy should focus on those opportunities that provide them with a long term competitive advantage (Bethel, 2016). However, the business strategy is not effective unless the organization has created a corporate level strategy to support it. Thus, the corporate level strategy formulates the