Strategic Planning Discussion post
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Strategic Planning Discussion post
The corporate-level strategy is designed to issue directions to an organization and how to attain long-term goals while on the other hand, business-level strategy entails the activities that organizations take on with the sole aim of acquiring a competitive advantage through utilizing key proficiencies that attach value to clients (Ireland, Hoskisson & Hitt, 2010, p. 100). The relationship between business level and corporate level strategy is that they are both used by organizations to acquire a competitive edge over their rivals. This competition is brought about by organizations continuing to go international in their businesses (Ireland et al., 2010). The difference between the two strategies is that corporate strategies are designed by top-tier managers, such as the CEO. In contrast, Business strategies are designed by middle-level managers, for instance, departmental managers. Corporate-level strategies are used to create long term solutions to business issues, while business-level strategies are used to solve short term business concerns.
The example of Apple Inc. is used to demonstrate the differences and relationship between business level and corporate level strategies. In the organization’s business-level strategies, the differentiation strategy is the first whereby Apple Inc.’s products are different from its rivals. Its form of distribution is through select stores worldwide (Harrison & John, 2009). The second strategy is Cost leadership, where Apple Inc. has come up with successful organizational alliances. Aside from that, Apple Inc. has placed a lot of emphasis on innovative merchandise through its vital research and development sector. A good example is iTunes, which assists other organizations in dispensing music and videos at minimal costs. Next on the organization’s corporate-level strategies includes diversification of merchandise at both average and high levels. Another strategy entails forming strategic pacts with other organizations to gain from “economies of scale,” while the final strategy is the universalization of production (Ireland et al., 2010).
References
Harrison, J., & John, C.St. (2009). Foundations of Strategic Management. Belmont, CA: Cengage Learning.
Ireland R.D., Hoskisson, R.E., & Hitt, A. (2010). Understanding Business Strategy Concepts Plus. Belmont, CA: Cengage Learning.