Corporate Strategy PDF

Summary

This document discusses concepts of corporate strategy and competitive advantage. Strategy is defined as the set of decisions and actions a company takes to gain and sustain superior performance. Different types of strategy are outlined, including levels such as corporate and functional strategies, along with directional strategies such as growth strategies. The document emphasizes how firms may seek to grow and achieve goals to increase profits and market share.

Full Transcript

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 ![Une image contenant texte, capture d'écran, Police Description générée automatiquement](media/image2.png) 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 ![Une image contenant texte, capture d'écran, Police, ligne Description générée automatiquement](media/image4.png)

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