incomplete mgt notes
Business strategy defines the major actions by which an organization
builds and strengthens its competitive position in the marketplace
A concentration strategy focuses on a single business competing in a
single industry
A strategy of concentric diversification involves moving into new
businesses that are related to the company’s original core business.
In contrast to concentric diversification, conglomerate diversification
is a corporate strategy that involves expansion into unrelated
businesses. For example, General Electric Corporation has diversified
from its original base in electrical and home appliance products to such
wide-ranging industries as health, finance, insurance, truck and air
transportation, and even media, with its ownership of NBC. Typically,
companies pursue a conglomerate diversification strategy to minimize
risks due to market fluctuations in one industry.
Simply stated, a core competence is something a company does
especially well relative to its competitors. 141142Honda, for example,
has a core competence in small engine design and manufacturing; Sony
has a core competence in miniaturization; Federal Express has a core
competence in logistics and customer service. As in these examples, a
core competence typically refers to a set of skills or expertise in some
activity, rather than physical or financial assets.-- A unique skill and/
or knowledge an organization possesses that gives it an edge over
competitors.
A corporate strategy identifies the set of businesses, markets, or
industries in which the organization competes and the distribution of
resources among those businesses.
Second, an organization may pursue a differentiation strategy. With a
differentiation strategy, a company attempts to be unique in its industry
or market segment along some dimensions that customers value. This
unique or differentiated position within the
builds and strengthens its competitive position in the marketplace
A concentration strategy focuses on a single business competing in a
single industry
A strategy of concentric diversification involves moving into new
businesses that are related to the company’s original core business.
In contrast to concentric diversification, conglomerate diversification
is a corporate strategy that involves expansion into unrelated
businesses. For example, General Electric Corporation has diversified
from its original base in electrical and home appliance products to such
wide-ranging industries as health, finance, insurance, truck and air
transportation, and even media, with its ownership of NBC. Typically,
companies pursue a conglomerate diversification strategy to minimize
risks due to market fluctuations in one industry.
Simply stated, a core competence is something a company does
especially well relative to its competitors. 141142Honda, for example,
has a core competence in small engine design and manufacturing; Sony
has a core competence in miniaturization; Federal Express has a core
competence in logistics and customer service. As in these examples, a
core competence typically refers to a set of skills or expertise in some
activity, rather than physical or financial assets.-- A unique skill and/
or knowledge an organization possesses that gives it an edge over
competitors.
A corporate strategy identifies the set of businesses, markets, or
industries in which the organization competes and the distribution of
resources among those businesses.
Second, an organization may pursue a differentiation strategy. With a
differentiation strategy, a company attempts to be unique in its industry
or market segment along some dimensions that customers value. This
unique or differentiated position within the