Tuesday 21 October 2014

Blog 23 – Strategy

Contrast corporate-level strategy with business-level strategy.

36 comments:

  1. The first contrast that comes to my mind is the objective of this two levels of strategies: while corporate-level strategy deals with the object and objective of the firm, the business-level strategy deals with how to reach that objective. In fact, while the former is "the big picture view" of the organization, the latter is about how the individual businesses should compete in their markets.

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  2. In my opinion, we could find a contrast between the corporate strategy and the business strategy, if a business unit (a part of the entity) thinks only to its private goals in its sector forgetting the most important objective and aim of the entire organization.

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  3. the difference can be explained with the uses of business unities. While, the first does not consider the business entities, the second is based with business unities and it's a very good way to expand in the world, having more unities around the world.

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  4. Emiliano Laurenzi22 October 2014 at 14:15

    The objective of the strategy is to ensure the survival and prosperity of the company. To this end, the company must obtain a return on capital greater than its cost. What determines the ability of the company to achieve a rate of return on capital that meets this condition? There are two possible ways: the corporate strategy and business startegy.
    The corporate startegy defines the scope of the enterprise through the choice of sectors and markets in which to compete. Strategic decisions at the group level include investments for diversification, vertical integration, acquisitions and new business ventures; the allocation of resources between the different business areas; divestments.
    The business strategy defines how to compete within a particular industry or market. If the company wants to be successful in one area, it must achieve a competitive advantage over its rivals. For this reason, this strategy is also defined as competitive strategy. Business strategies are developed and implemented through functional strategies for different areas: production, research and development, marketing, human resources, finance.

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  5. The corporate level strategy includes all the subsidiaries strategies, for this reason it is the most important because from the first one depends the strategies and the decision making of business-level strategy. If we would make a picture of the strategy levels' structure we can put on the top the corporate level strategy which establishes the objectives of the azienda and as subsidiaries we can find the business-level strategy which is the means of each singular business to run in their market trying to achieve and satisfy the objectives delegated by the corporate-business level

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  6. The corporate-level strategy is basically strongly connected with the aim of an organization, that means: is concerned with the framework of a company including decisions that are influencing different particular strategic business units and therefore is characterizing all the general objectives and perspectives of the organization, while the business-level strategy is about how a singular business should interact and work in his personal market, planning the strategy considering resources and competitors but without having an overall view such as the corporate-level strategy that we could say is bounding and directing the business-level strategy.

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  7. i want take apple for my example,in this case the business strategy of apple are good service,good primary techonologies prodcut,innovation prodcuts,.those things are useful for create effectieness and efficiency strategy .
    Few years ago Apple bought beast(one of the bigger brand that product professional heardress)i think this is a corporate strategy. two different kind of business that make a sinlge corporate like a family.

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  8. The contrast between these two different level strategy is that Corporate level strategy is concerned with the overall scope of an organization, instead business level strategy is about how the individual business should compete in their particular markets.
    I think that my colleague Xu Zhan did an excellent example to explain this concept.

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  9. A small business operating in a single industry must develop and exploit a competitive advantage if it is to be profitable. The decisions that a company makes on its way to creating, maintaining and using its competitive advantages are business-level strategies. But when a business identifies opportunities outside its original industry it might contemplate diversification. When additional businesses become part of the company, the small business owner must consider corporate-level strategy.

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  10. The contrast between corporate and business strategy is the scope of the strategy. Corporate strategy is broadly focussed on issues that will affect the entire company. In fact it involves decisions regarding the direction of the firm as a whole (i.e. decide which product or service should be brought to the market and the geographic boundaries of the organization’s operations).
    On the other hand, business strategy specifies how the organization will compete in a particular business sector. It concerns matters like pricing, marketing, efficiency. This is the reason why it’s often called “competitive strategy”.
    Moreover, corporate strategies are more stable and should not be changed frequently. Instead, business strategies must be regularly changed in order to respond to the constant changes in the markets.

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    Replies
    1. Everything said and mentioned above is true. I would say also that corporate-level strategy is very important for the whole organization, as Fabio said, it makes sure that the whole corporate or other SBUs in the group are not being damaged. We can also say that sometimes the business-level strategy is more important than the other one in terms of vital and operational decisions need.

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  11. They are two different kind of strategy. The corporate startegy has a wider and systematic effect because it affect the organization as a whole and it concerns matters such as business size, diversification and acquisition. Conversely the business strategy is a kind of strategy that affects just one business unit in a partitular business sector and it concerns, for example, marketing efficency, price policies and distribution. Generally corporate strategies are developed from top level managers indeed business strategies from managers in different lines of authority.

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  12. Corporate level strategy can gain corporate advantage leading to outperforming competition meaning that the production of goods and service will result cheaper in costs.On the other hand business level strategy's will affect small company's functional decisions. However corporate level strategy and business level strategy work together to perform and influence each other to have a successful business running in the market.

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  13. The main contrast between Corporate-level strategy and Business-level strategy is the fact that the first is concerned with decisions about the organization as a whole, while the Business-level strategy is about individual businesses and how they should compete in the merket.

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  14. The contrast between corporate level strategy and business-level strategy lays in achieving effectively and efficiently the goals. While the former may damage some sector of the whole company to accomplish corporate objectives, on the other hand the latter focuses on the particular strategic business unit that can be different from the other ones. A strong link between the two can be only good for both of them

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  15. The contrast that in my opinion is that corporate level strategy is broader,more expanded like internationally,and it has a longer term goal,wheras business level strategy gives more attention to the individuals emlployees,allowing them to contribute and with their skills alow the business to grow and expand

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  16. Corporate level strategy addresses "big Picture" of the business. It is more broad and gives overall direction of the business. Examples of the corporate level strategies would be: in which geographic are business operates, allocation and distribution of the company's assets and resources, entering new markets and etc,.
    Business level strategy focuses more on one aspect of the business whether on the overall performance. Business level strategies more often focus on one product or service, in addition they develop competitive advantage for the business and etc.
    Overall business level strategies support corporate level strategies. However while corporate level strategies are more focused on the overall performance of the company business level strategies focus on adapting to the market where they operate.

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  17. The main difference between corporate-level strategy and business-level strategy is that in the first case it refers to the whole organization, while in the second case it refers to the market and how to compete in it.

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  18. We can consider the corporate level-strategy as a big picture of what the organization is doing; so it's concerned about the whole company. While, the business level strategy is focused about one unit, one particular business.

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  19. Corporate level strategy has a broader influence on market whereas business level strategy has less influence on market. Companies following corporate level strategy have to think broader and to consider the benefits of more individuals. They have a well-developed breucracy and greater range of advertisement. Business level strategy brings a greater risk than corparate level strategy. In order to maintain their status small businesses have to spend more effort than big companies. They have a specific range of consumers and they have to compete with big businesses.

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  20. Business strategy is the engine of competition and developing it should be participative, action-oriented and motivating.Corporate strategy on the other hand, moves the business unit piece by piece . It mixes and connects the business units to create a corporation of many business units that works better together than the sum of the separate parts .Corporate and business strategies work together and influence each other in an effort to make the business units and the corporation successful.

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  21. The contrast between Corporate-level strategy and Business-level strategy in in the purpose. While the first one is concerned with the overall scope of an organization and deals with issues that affect the whole organization's system ( geographical scope, diversity of products or services, acquisitions of new businesses ecc.), the second one is about how the individual businesses of an organization should compete in their specific markets and deals with issues that affect the individual businesses ( innovation, appropriate scale and response to competitor's moves).

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  22. For corporate level strategy we mean the decisions taken looking at the complex and whole picture of the firm, while for business level strategy we refer to the purview of the strategic business units.
    Considering that, we can think that someone could lose the overall imagine and take them as two different points of view; but they have the same purpose: the business level strategy can be considered as a subset or an aspect of the corporate level strategy. Managers have to collaburate to get the best results in both the precincts.

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  23. Both corporate level strategy and business level strategy can be used in a corporation. Corporate level strategy is probably the more important as it has to deal with the whole company and has to make sure it can deal with many different aspects, where as business level strategy allows a department to focus on exactly what they are doing and what they need to achieve. I believe business level strategy for some businesses is just a way of controlling the corporate level strategy into segments

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  24. Corporate-level strategy involves decisions about the whole organization and it deals with diversity of products or services, acquisitions of new businesses, while business-level strategy is about businesses competitions in the market and it deals with issues such as innovation, how to response to competitors.
    In my opinion it's important to take into account both strategies for the success of the firm.

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  25. When we talk about the strategies of corporate level and business level, we can tell that the design process is similar but the scope is different. Corporate strategy includes the whole organization and it is done for a long period of time. It is related with the vision of the company. Business strategy is related with the scope of the single business. It is also for long period, but shorter than corporate ones and it is directed toward the performance of business and its goals. Business strategy evaluates also the position of the business in the given market. Through the achievement of business strategy can gradually be achieved the Corporate strategy. Those are strongly related with each other.

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  26. What i have understood is that businesslevel strategy can be considered as part of corporate level strategy but not the opposite. Corporate strategy operates thinking to a wide range of costumer trying to face every kind of services and products they need around all over the world while business strategy focuses his attention to competition and innovation. Probably both will operate to reachthe best value but in my opinion corporate level strategy pay more attention to costumer that are the force of the economy.

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  27. Corporate level strategy includes the whole organization and and include geographical scope, diversity of products and services, merger with new businesses etc. it involves long term strategies, longer that that of business strategy. Business level streategy is related with the normal performance of the business, the competition in their markets, innovation etc. It can be considered as part of the corporate level.

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  28. Corporate strategy and business strategy are two connected things; corporate strategies concern issues that affect and that will affect, for a long-term, the whole companies. The corporate strategy, thus, includes the scope of the economic entity, clarifying the sector or the markets in which the azienda wants to compete. In corporate-level strategy business has to invest for diversification, for the acquisition and original business ventures.
    Whereas the business strategy is the group of choices concerning how an economic entity decides to compete in a certain sector. Usually these choices involve strategies based on cost and differentiation. The important for companies is not to be overpowered by competitors so they have to keep up with current times and keep their business strategies updated, that’s why it’s also called “competitive strategy”.
    Therefore, the corporate strategy has a long-term duration, while the business one has always to be changed.

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  29. The main difference between a corporate level strategy and a business level strategy is that while the first affects the entire organization the second one concerns the single entities. In my opinion the two different strategies have importance in their specific field. A corporate strategy in fact can improve the organization entirely while a business strategy is the sum of all the single entities that together can help the organization to achieve its specific goals
    I

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  30. In my opinion, The difference between corporate-level strategy with business-level strategy is scope. Corporate-level strategy is concerned with the overall of an organization and how value is added to the constituent business of the organizational whole. Corporate-level strategy issues include geographical scope, diversity of products or services, acquisition of new business, and how resources are allocated between the different elements of the organization

    By contrast, Business-level strategy is about how the individual business should compete in their particular markets. These individual business might be stand-alone business, for instance entrepreneurial start-ups, or "business units" within a large corporation. Business-level strategy typically concerns issues such as innovation, appropriate scale and response to competitors' moves.

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  31. The business level strategy outlines an organisations direction and purpose solely looking at how to compete within a particular business so as to have a competitive advantage while a corporate level strategy outlines the overall scope and direction of a corporation looking at what businesses to compete in to achieve a particular goal.

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  32. the corporate level was leaded by the business level.because the business level is defined how to make profit and where the corporate get the profit.and the business level determined the corporate level to play with which kind of company competition.

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  33. The corporate strategy is certainly different from the business strategy, but not necessarily at odds.
    For example, the Fiat has many products (cars, tractors, trucks, etc.), So the corporate strategy must take care of the entire company. The business unit instead is focused on the product and its strategies will focus only on product development, in all its aspects.

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  34. I think Business level strategy is related to specifically that business entity and deals with operations of only that specific entity while on the other hand Corporate level strategy is about the whole firm. It includes it's all business entities and it's used on the major level.
    Which is better than other, we can't say because it depends, sometimes business level strategy is useful & sometimes corporate level.

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  35. Corporate-level strategy is the scope of the whole organization and the aim of this one is how to create the value for the firm as a whole , maybe to achieve this goal will be a long term. in other hand, business-level strategy is how to create competitive advantages in each business in which company competes, business-level strategy is also called" competitive strategy " so when set up a business-level strategy it means that if a company sell the same product with our company, it has the low cost in the market ,we focused on the low cost. it has the differentiation we begin to focused on the differentiation. Thus, these two strategy are all useful.

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