Look for two companies from different industries. Discuss the corporate level strategies adopted by the two companies.

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nent of competitive advantage. CORPORATE STRATEGY Overall Direction of a Company) Growth Strategy Stability Strategy Retrenchment Strategy (To achieve growth in sales and assets) (To continue current activities) (To discontinue present activities) Concentration Strategy Pause or Proceed-with-Caution Turnaround Strategy (More appropriate in a Strategy growing industry) (Companies drastically streamline (Companies do not make their operations by cutting significant changes in their costs and selling non-profitable Horizontal Growth Strategy direction but observe movements business units to have a leaner but in the industry.) competitive organization.) (Entering into a new market) No-Change Strategy Captive Company Strategy Exporting, licensing, franchising, joint venture, acquisition, green-field (Companies with dominant (Companies with weak positions in positions in a stable industry the industry become captives of development, turnkey operations, opt to continue enjoying their other companies with strong and BOT successful operations and do not industry positions.) plan to make major changes.) Vertical Growth Strategy Sell-out or Divestment Strategy (Taking over the functions of suppliers Profit Strategy (Companies sell a division of or the and distributors) (Companies that are experiencing entire business for a good price.) a decline in sales consider cutting Full integration, backward integration, their costs and investments to support profits.) Bankruptcy or Liquidation forward integration, and Strategy long-term contracts Companies give up their management to a court or convert Diversification Strategy assets to cash to settle financial obligations.) (More appropriate. in a mature industry) Concentric Diversification Strategy (More appropriate when a company has a strong competitive position in a less attractive industry) Conglomerate Diversification Strategy (More appropriate in a less attractive industry and when a company is unable to transfer resources to related products or services Figure 7.2 The three types of corporate strategies and their subclassifications