Differentiate Between Corporate-Level and Business-Level Strategies and Give Examples of Each

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The Answer is A business-level strategy determines how a firm will compete in a single industry or product market. When a firm diversifies beyond a single industry it uses a corporate-level strategy. A diversified company has two levels of strategy: business-level and corporate-level. Each business unit has a business level strategy. The corporate strategy is concerned with: 1) what businesses the firm should be in and 2) how the corporate office should manage the group of businesses. The top management of diversified companies views the firm's businesses as a portfolio of core competencies that will generate above-average returns by creating value. An example of a business-level strategy would be whether the firm targets the mass market and competes on price, or whether it competes on the basis of uniqueness. An example of a corporate-level strategy would be whether the firm should sell off a poorly performing subsidiary.

Differentiate Between Corporate-Level and Business-Level Strategies and Give Examples of Each

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Differentiate Between Corporate-Level and Business-Level Strategies and Give Examples of Each

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Correct Answer:VerifiedShow Answer

Correct Answer:
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