Chap 6 Corporate Strategies
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Corporate Level strategy is an action taken to gain a competitive advantage through the selection and management of a mix of business competing in several industries or product markets.
Corporate strategy is what makes the corporate whole add up to more than the sum of its business unit parts.
The three broad approaches to corporate strategy are single business/concentration, vertical integration and diversification, which is divided into two broad categories, related and unrelated.
Evidence shows that unrelated diversification is associated with higher levels of risk than other strategies. Unrelated diversification places significant demands on corporate –level executives due to increased complexity and technological changes across industries. However, large company like GE performs well in this strategy as they have skills and resources to help its businesses overcome problems of unrelated business areas.
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