Terms in this set (39)

Corporate-level strategy: plan of action that involves choosing in which industries and countries a company should invest its resources to achieve its mission and goals.
1) concentration on a Single Industry:
-reinvesting company profits to strengthen its competitive position in its current industry
-develop new products or services in that industry
-expand the number of locations
2) Vertical integration: expanding a company's operations either into an industry that produces inputs for its products or into an industry that uses, distributes, or sells its products.
Backward vertical integration-a firm seeks to reduce its input costs by producing its own inputs.
Forward vertical integration-a firm distributes its outputs or products to lower distribution costs and ensure quality service to customers.
3) Diversification: expanding a company's business operation into a new industry in order to produce new kinds of valuable goods or services
TWO WAYS TO DIVERSIFY: (1) related diversification-entering a new business to create a competitive advantage in one or more of an organization's existing divisions or businesses-the goal is synergy between businesses; (2) UNrelated diversification-entering a new industry or buying a company in a new industry that is not related in any way to an organization's current businesses or industries
*too much can cause managers to lose control of their organization's core business
4) International expansion: Global strategy:selling the same standardized product and using basic marketing approach in each national market.