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Single business firm Business level Business Level Strategy Human Functiona Financial MarketingR&D resource Level Strategies strategies strategies Strategy
Multi Business Firm Corporate Level Corporate strategy office BusinessBusiness Business Business Business Level 1 2 3 4 strategy
Difference between CLS &BLSS.No Business Level Strategy Corporate level strategy Related with single business Unit Related with overall corporate consisting of more than one businesses Aims to gain competitive Aims to gain Corporate advantage advantage Main strategies are Cost Main strategies are expansion, leadership , differentiation stability and Retrehment
Corporate strategyCorporate level strategy is related with decisions of1. overall direction and growth of corporate2. Resource allocation among businesses3. Transfer of resources4. Managing and nurturing a group or portfolio of businesses.
What a business does? Customer Customer Alternative group function technology• Children • Nutrition • Advance supplements food processing BUSINESS DEFINITION
In a multi business corporate there is a challenge to serve so many customer groups to satisfy respective customer functions by use of various alternative technologies.
Corporate strategy deals with this challenge of managing a range of businesses. How to allocate resources between them, maximize their contributions, and finally give them a common direction – vision mission and corporate objectives
Four Fundamental type of corporate strategies sExpansion strategyStability strategyRetrenchment strategyCombination strategy
Expansion strategyIncreasing the scope of business definition of single or more than one businesses.Example :- ADAG Communications,Infrastructure,Financial services, Entertainment, Power, Natural resource, Petrochemical ,Health care ,BPO
Stability StrategyMarginal change in business definition to improve its performance.An hospital brings new heart surgical technology( change in technology)New Horlics with new supplements.( change in product or customer function)A bank provides special treatment to its industrial account holders(new approach to customer group)
Retrenchment strategiesTotal or partial withdrawal from one or more businesses.Only specialty treatment by a hospital instead of general treatment earlier.