BUS 499 WK 6 Business Corporate Strateg

Powerful Essays
Business-Level and Corporate-Level Strategies
Donald E. Baker
Strayer University
Dr. Nicole Ortloff
BUS 499-Business Administration Capstone
Nov 12, 2014

Business/Corporate 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 been able to employ this strategy effectively in order to effectively compete with its main industry rivals. Cost leadership as a business level strategy that capitalizes on the fact that corporations mainly compete based on price. In this way, the ability to provide goods and services at minimal costs enables a given company to attract customers in a



References: Aguinis, H. (2013). Performance management. 3rd edition. Boston, MA: Prentice Hall. Bateman, Thomas S., and Snell, Scott A. Management: Leading & Collaborating in a Competitive World. 9th edition. Boston: McGraw-Hill Irwin, 2011. Print. Delmas, M and Toffel, M. (2008). Organizational Responses to Environmental Demands: Opening the Black Box, Strategic Management Journal. 29(10): 1027-1055 Freyssenet, M., & Groupe d 'études et de recherches permanent sur l 'industrie et les salariés de l 'automobile. (2009). The second automobile revolution: Trajectories of the world carmakers in the 21st century. Basingstoke: Palgrave Macmillan. General Motors Corporation. (2012). Annual report of General Motors Corporation. Detroit, Mich.: The Corp. Olson, E. M., Slater, S. F., & Hult, G. T. M. (2005). The performance implications of fit among business strategy, marketing organization structure, and strategic behavior. Journal of Marketing, 69, (3), 49-65. Shimokawa, K. (2010). Japan and the global automotive industry. Cambridge: Cambridge University Press.

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