Corporate Level Strategy : An Organization Essay

Corporate Level Strategy : An Organization Essay

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Corporate level strategy is comprised of the decisions strategic managers must make in choosing in which organizations and commercial ventures an organization ought to contend in, selecting which value creation activities it should perform in those organizations and deciding how it should enter them, join, or leave organizations or industries to gain long-term profitability (Hill, Jones, Schilling, 2015). In this manner, to increase profitability, a corporate-level strategy should empower an organization to perform these value functional activities at a low cost and/or in a way that builds differentiation (Hill, Jones, Schilling, 2015). In the event that an organization picks the correct corporate-level strategy it can choose pricing options, which will permit it to maximize profitability, along these lines, assisting the company by lowering industry rivals and by lowering the threat of damaging price competition (Hill, jones, Schilling, 2015). During the formulation of the corporate-level strategy, managers must actualize a long haul viewpoint and think about how changes occurring in an industry and in its products, technology, customers, and rivals will influence their organization 's business model and its pending strategies (Hill, Jones, Schilling, 2015). Managers would then need to choose how to adopt particular corporate-level strategies that reevaluate their organization 's plan of action permitting it to gain its competitive advantage in a changing industry environment by taking advantage of opportunities and countering threats (Hill, Jones, Schilling, 2015).
When deciding on expanding their business activities beyond one market or industry and enter others, companies must build its business model at two levels (Hill, Jon...

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Outsourcing, another strategy of corporate-level integration, is the choice to permit one or more of a company 's value chain activities to be performed by autonomous pro organizations that concentrate every one of their skills and knowledge on one kind of activity. When an organization outsources, it is concentrating on a couple of activities to fortify its business model and increase their profitability. Advantages of this strategy incorporates benefits that can help an organization lower cost structure, increase product differentiation, and concentrate on the particular distinctive competencies that are key to its long-term competitive advantage and profitability. Even though there are benefits associated with this strategy there are also risks, which includes holdup, increased competition, and loss of information and forfeited learning opportunities.

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