1. The high level management and Board of Directors make the corporate-level
strategies. According to the mission and goals of the company, they need to make
the strategies that coordinate the current resources to help
...
1. The high level management and Board of Directors make the corporate-level
strategies. According to the mission and goals of the company, they need to make
the strategies that coordinate the current resources to help individual department
achieve their goals.
When an organization has multi-business model, it would be better if we create
two levels plan at the same time. The first one we need to focus on what the
company wants to engage in and how to combine the company as whole to create
additional value. Second one is to apply high level strategies into different model.
Then creating their own specific strategies. Their target is to make different
business model earn more money and higher the profit. Corporate-level strategy
would provide support and make the business level strategy a success.
2. When several companies in the market provide similar products or services, the
bigger one is able to acquire or merge the smaller one to make themselves
stronger. The advantage is having the economic scale to lower the cost. Also, it
would increase the products capacity and have competitive advantage. In addition,
the rival in the market will become less. The disadvantage is it may not be
allowed in some areas and countries because it fight for the commercial
regulations. Also, the company may have too much power to control the price. In
order to make more profits the price would be higher than before. It would have
more power in bargaining with suppliers. These would hurt the balance of the
market.
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