1. What is corporate strategy? What 3 issues does it involve? * -Corporate strategy is the overall scope and direction of a corporation and the way in which its various business operations work together to achieve particular goals. 3 issues are the firm’s orientation towards growth, stability and retrenchment, (Directional Strategy), the industry or markets in which the firm competes (Portfolio Strategy), and the manner in which management coordinates activities transfer’s resources, and business units. (Parenting Strategy)
2. There is a growing trend of increased collaboration among competitors. List the benefits and drawbacks of this practice.
-One drawback of this is unintended transfers of important skills or technology may occur at organizational levels below where the deal was signed. Additionally, information not covered in the formal agreement often gets traded in the day-to-day interactions. A benefit is that the companies are in a joint venture where they can use all of their skills to maximize over competitors. Also, some might have more innovative technology or different resources that the other firm might not have access to so it helps both firms. 3. How does strategy formulation differ for a small versus a large organization? How does it differ for a for-profit versus a nonprofit organization?
-Large firms can use cost leadership strategies while smaller cannot. Large and small can use differentiation and small can use focus whereas a large firm cannot. Profit uses these strategies more than a nonprofit would because it is for the firm to gain money; nonprofit is usually for a good cause or to help the environment. Nonprofits usually partner up with profits and this is called cause related marketing. 4. Choose two of these strategies. From current news, provide an example of a company using the corporate-level strategy. Choose two different strategies and examples. a....