Corporate Strategy PDF

Part B Strategy en Business Cycle Session 6 : Corporate Strategy Learning goals: - Understanding Corporate Strategy - Understand Vertical Integration and Diversification - Apply the core competence market matrix - Design a corporate Strategy Strategy is a process, a set of consistent...

Part B Strategy en Business Cycle Session 6 : Corporate Strategy Learning goals: - Understanding Corporate Strategy - Understand Vertical Integration and Diversification - Apply the core competence market matrix - Design a corporate Strategy Strategy is a process, a set of consistent and reinforcing decisions and goal directed actions a firm takes to gain and sustain superior performance relative to competitors. - COMPETITIVE ADVANTAGE Refers to the way that a company can produce goods or deliver services better than its competitors. It allows a company to achieve superior margins + generate value for the company and the shareholders. It cannot be easily replicated and is exclusive to a company or business. - CORPORATE STRATEGY decisions that leaders make. Goals directed actions that they take in the quest for competitive advantage. - 3 LEVELS OF STRATEGY Une image contenant texte, capture d'écran, Police, conception Description générée automatiquement 1. Decisions on diversity of products, services, business units Example : Ensemble de mesures visant à diversifier les activités initiales de l\'organisation vers d\'autres activités, par exemple Tesla qui vend des batteries à usage domestique. 2. Decisions on markets and product improvement strategies Exemple : Stratégies de marketing et d\'amélioration des produits, par exemple développement d\'une voiture de volume à moindre coût pour Tesla. 3. Functional strategies concerning how the organization approaches functions such as marketing for example Exemple : Les stratégies fonctionnelles sont axées sur la satisfaction de ses besoins en matière d\'investissement et par exemple, les salles d\'exposition de Teslash dans les centres commerciaux  Business Strategy = how to compete, do the difference between groups, cost leadership with Ryanair / differentiation with Singapore airlines ( DIFFERENTIATION SUR UN MEME MARCHE COMMENT GRATTER DES PARTS DE MARCHÉ ) exemple H&M and hermes Corporate Strategy = grand grp qui veulent se diversifer. ( DIVERSIFICATION ) Where to compete ? ( COMMENT PRENDRE TT LE MARCHÉ ) Disney for exemple , parks and resorts, marketing EXEMPLE DE LVMH ( wines, parfums, fashion... ) Une image contenant texte, capture d'écran, diagramme, Police Description générée automatiquement - Why firms need to grow ? To increase profits for company's = results in shareholder returns Achieve econcomy of scale to reach efficiency To increase market power, fewer competitors, more bargaining power and higher profitability Ton reduce risk through diversification