Case Study : Corporate Level Strategy

1234 Words5 Pages
NishitKumar Patel
Assignment 7
MGMT 510
Student ID 99836
Chapter 9
1) Corporate level strategy is afraid with the strategic decisions a business makes that affect the entire organization. Financial performance, unions and achievements, human resource management and the distribution of resources are considered part of corporate level strategy. Usually senior manager makes strategy decision at corporate level. Units are identified as cost centers, profit centers or investment centers. Essentially, this suggests that corporate objectives can be broken down into subunit objectives which are optimizations of those elements of the income statement and balance sheet. Many multi business companies allow their business units the freedom to act
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• Method of strategy
• Knowledge of strategy
• Analysis the strategy
• Evaluating your firm with strategy
• Result of evaluating strategy
3) 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.
To make a part of a larger unit Vertical and horizontal integration help to expand a company line up or down the product line and across the service producers both relate to strategies that are made to grow your business but they differ in approach. Vertical and horizontal integration is mostly done by recognized businesses because they are financially stable to take risks. Expanding horizontally is much simpler than vertically. Horizontally integrating simply to increase your market share by including a similar company. Vertical integration use forward integration and backward integration. Forward integration is a strategy where a firm gains ownership or increased control over its previous customers. Backward integration is a strategy where a firm gains ownership or increased control over its previous suppliers. Vertical integration is different from horizontal integration where a
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