Corporate Level Strategy (Video 1)
Corporate Level Strategy describes the entire strategic scope of the organization. This is the panoramic view of the organization. It is the strategy by which an organization decides in which product or service markets to compete and in which geographical regions to operate. Normally the organizations, who have multiple businesses, use corporate level strategy for allocation and distribution of resources i.e. how cash, equipment, staffing, and other resources are distributed . These strategies are established at corporate level. Corporate level strategy has three levels:
Corporate Level Strategy has four types.
Combination of above three strategies.
These strategies are called grand strategies, basic strategies or generic strategies. An organization is a group of people working together for business, political and social purposes. In a business organization every individual plays his role strategically to take the organization step forward and achieve its goal. In an organization top management decides upon the strategy led by the president or chairman of that organization. In 2003, Thompson and Cats-Baril identified the 4 E’s of corporate strategy that an organization should take care of ; Extend: It means bring something new in the business by innovation or increase the size of the business or enter into a new business. Expand: This means an organization should add more products and services with the existing business. Exit. This is an option organisaion should consider to get rid of those product lines, services and business which are no longer profitable or less profitable to operate. Enhance: This option means an organization should consider to add more functions in existing product or enhance the existing product by giving it a new look.
For example. In Nike Inc. We can see the combination of all corporate level strategies and all level of corporate strategies. Nike is applying the growth strategy to its fullest extent and now we can see its customer in all the continents of the world; USA, Africa, Australia, Middle East, Asia Pacific and Americas region. Nike is stable because it is able to maintain its stability and profitability in long run and continue to grow within the industry. Strategic outsourcing is the key to success in case of Nike. Nike products are manufactured in countries other than USA. Nike has contract of production with several countries in the world. i.e. Vietnam, China, Indonesia and Thailand. These countries are producing Nike products in low labor rates. Since 2007 Nike sports goods are being manufactured in Pakistan also because of low cost. In this way Nike is successful in business world.
GOOD BUSINESS STRATEGY (Video 2)
Business Strategy is defined as what type of decisions a company should make to achieve the desired objective and goals and set of policies a company should make to for the organization to be successful in long run.According to Richard Rumelt, who is a professor of business and society, a business strategy is about to focus resources of an organization and a good business strategy focuses multiple resources on single objective. A company can go wrong if it has a complicated and complex strategy. A good business strategy is precise, short and clear. It is difficult to determine whether an organization is accomplishing the strategy by looking at current results because the effect of any applied strategy is shown slowly over time. So an organization can show excellent result with poor business strategy and poor result with good business strategy. Following points are important for an organization in establishing good business strategy:
Establish an achievable and clear vision that sets out what is the aim of an organization Balance innovation with tried and possible solutions
Ensure that the...
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