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Corporate-Level Strategies A corporate-level strategy is a plan of action that involves choosing in which industries and countries a company should invest its resources. In choosing a corporate-level strategy, managers ask, "How should the growth and development of our company be managed to increase its ability to create value for customers (and thus increase its performance and make money) over the long run?" Managers of effective organizations actively seek new opportunities to use a company's resources to create new and improved goods and services. The principal corporate-level strategies that managers use to help a company grow and keep it at the top of its industry, or to help it retrench and reorganize to stop its decline, are (1) concentration on a single industry, (2) vertical integration, (3) diversification, and (4) international expansion. An organization will benefit from pursuing any of these strategies only when the strategy helps further increase the value of the organization's goods and services so more customers buy them. This exercise will give you the opportunity to choose among these strategies by recognizing the situations in which each is most appropriate. Concentration in a single industry Forward vertical integration Backward vertical integration Related diversification Unrelated diversification --------------------------------- CAMPBELL sold Godiva chocolate and invested the money in its core soups business. APPLE opened stores to sell the computers and other electronic devices it makes. GALLO WINES opened a new division to make the bottles it would use for the wines it produces. NIKE reinvests profit into its sportswear product development. COCA COLA buys a company that makes artificial sweeteners that it will use to produce its sugar-free beverages. KRAFT FOODS acquires a toy manufacturing company. MCDONALDS buys chicken ranches to provide eggs to its restaurants. GENERAL ELECTRONICS purchases a plumbing supply manufacturing company. REDKEN manufactures shampoo, rinse, and other hair products. It buys a company that manufactures blow dryers, curling irons, and flat irons. EGG WAFFLES buys a syrup-producing company to increase its market share in the breakfast food industry.

Corporate-Level Strategies
A corporate-level strategy is a plan of action that involves choosing in which industries and countries a company should invest its resources. In choosing a corporate-level strategy, managers ask, "How should the growth and development of our company be managed to increase its ability to create value for customers (and thus increase its performance and make money) over the long run?" Managers of effective organizations actively seek new opportunities to use a company's resources to create new and improved goods and services.

The principal corporate-level strategies that managers use to help a company grow and keep it at the top of its industry, or to help it retrench and reorganize to stop its decline, are (1) concentration on a single industry, (2) vertical integration, (3) diversification, and (4) international expansion. An organization will benefit from pursuing any of these strategies only when the strategy helps further increase the value of the organization's goods and services so more customers buy them. This exercise will give you the opportunity to choose among these strategies by recognizing the situations in which each is most appropriate.

Concentration in a single industry
Forward vertical integration
Backward vertical integration
Related diversification
Unrelated diversification
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CAMPBELL sold Godiva chocolate and invested the money in its core soups business.
APPLE opened stores to sell the computers and other electronic devices it makes.
GALLO WINES opened a new division to make the bottles it would use for the wines it produces.
NIKE reinvests profit into its sportswear product development.
COCA COLA buys a company that makes artificial sweeteners that it will use to produce its sugar-free beverages.
KRAFT FOODS acquires a toy manufacturing company.
MCDONALDS buys chicken ranches to provide eggs to its restaurants.
GENERAL ELECTRONICS purchases a plumbing supply manufacturing company.
REDKEN manufactures shampoo, rinse, and other hair products. It buys a company that manufactures blow dryers, curling irons, and flat irons.
EGG WAFFLES buys a syrup-producing company to increase its market share in the breakfast food industry.

Added by James H.

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