Develop corporate-level strategies to improve the overall strength of a company
Businesses are seeking strategies that will help them build and sustain a competitive advantage. Strategies can be utilized to gain new customers and increase sales, increase differentiation and value to raise prices and lower cost structures to increase profitability. In many cases, companies pursue corporate-level strategies, such as integration, to achieve these objectives.
Activity Steps
Step 1: To begin, your team will gather to discuss what each member knows about globalization, integration, and diversification. Discuss the pros and cons of each of these approaches and how they relate to the strategy your company is pursuing.
Step 2: Analyze the brewing industry. Are you top competitors in the craft beer market? How are they structured to compete in this space? Have they had success in their corporate level strategies? Thoroughly think through all of the possible scenarios.
Step 3: Global Strategy: Determine if any global strategy is suitable for your business. A global standardization, a globalization strategy, localization strategy, international strategy, or a transnational strategy. The team will also need to determine which entry strategy you will pursue (e.g., franchising, joint venture, wholly owned subsidiary, etc.).
Step 4: Diversification: Based on the industry your company is competing in, discuss if diversification could be implemented. What are the possible strategies to diversify? What products or businesses could your firm enter to achieve a profitable diversification? Develop ideas in both unrelated and related diversification. Decide which diversification idea you will pursue and identify the type of diversification. Determine which method of entering new industries is best for your company. Discuss the pros and cons of each method. Develop cases for each to determine which method your business should pursue. Remember, the goal is profitability.
Step 5: Develop plans for both vertical and horizontal integration and identify the strengths and limitations of both. Then, determine which option you feel is most viable to meet the company’s need and explain why.