Corporate Level Strategy: What is it and How Does it Impact Businesses?
Which of the following is an example of a corporate level strategy?
Group of answer choices
A. Target differentiates itself from Wal-Mart by offering high quality and fresher products
B. Wal-Mart's use of the RFID technology to improve efficiency.
C. Forever 21 and H&M focus on young women in the apparel industry.
D. Hewlett-Packard decides to get out of the PC manufacturing industry.
E. United Airlines start to charge for checked luggage.
Final answer:
A corporate level strategy governs the organization as a whole. In the given examples, Target's differentiation from Wal-Mart by offering high quality and fresh products is an example of a corporate level strategy. Wal-Mart's use of RFID technology is more related to operational strategies.
Answer:
The correct answer is D. Hewlett-Packard decides to get out of the PC manufacturing industry.
A corporate level strategy is a plan for a company to achieve its long-term strategic goals. In the case of Hewlett-Packard deciding to get out of the PC manufacturing industry, this decision would be an example of a corporate level strategy. This decision would be driven by the company's objectives, such as the need to focus on higher-margin products, reduce costs, or shift resources to different areas of the business. By making this decision, the company would be making a strategic move to focus on a different core business, and this could help them to gain a competitive advantage in the marketplace. The decision to get out of the PC manufacturing industry could also involve restructuring the company, divesting certain business units, and/or introducing new products and services.
A corporate level strategy governs the organization as a whole, impacting its overall direction and long-term success. It involves decisions and actions that affect the entire company rather than just individual departments or functions. By understanding and implementing effective corporate level strategies, businesses can align their resources, capabilities, and goals to achieve sustainable competitive advantages and drive growth.
Corporate level strategies can include diversification, restructuring, mergers and acquisitions, and portfolio management. These strategies are essential for businesses to adapt to changing market conditions, enhance their competitive positioning, and achieve long-term success. By carefully planning and executing corporate level strategies, companies can navigate challenges, capitalize on opportunities, and position themselves for sustainable growth and profitability.