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Case Study : Corporate Level Strategy

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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 quite independently in pursuing these types of objectives. Multi-business firm can lead to important competitive advantages for businesses and in turn increased profitability of corporation as a whole. Higher-level multi business model that defends its entry into different businesses and industries. 2) Horizontal integration is talented by growth into additional business activities that are within the same level of the value chain. Advantage of Horizontal Integration:  Lowers the cost structure  Increases product differentiation  Leverages a competitive advantage  Reduces rivalry within the industry  Increases bargaining power over suppliers and buyers Disadvantage of Horizontal Integration:  Difficult to implement  Conflict with the

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