Bus 5117 Group 003A Project Paper

Running head: CORNING INCORPORATED GSC 1
University of the People
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BUS 5117 Strategic Decision Making and Management
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Corning Incorporated Growth and Strategy Council Case Study
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Group Project: Group 003A team members
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Saby de Bies
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Lorenzo Harewood
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Meghan Mangal
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Alvin Menyon, Jr.

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Robert Mesleh
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Instructor: Prof. Donna Pepper
June 2020
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CORNING INCORPORATED GSC 2
Introduction
Corning Incorporated, based in New York, is an American multinational company
which is a world leader in materials companies. The firm describes itself as a "science-based
company that sells innovation" (Henderson and Reavis, 2009, p.2). Their main specialty is
glass, lead glass, signal glass, ceramics, and other materials, including some technologies for
advanced optics both for industrial and scientific applications. By 2008 the company had
24,800 employees, and their stock price was back up to $23 after recovering from the
worldwide telecommunication crash in 2002 (Henderson and Reavis, 2009).
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Corning has four segments (display technologies, telecommunications, environmental
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technologies, and life sciences), each with unique and different technology; the
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commonalities are research and use of glass technologies to serve the specific markets. At
their core are invention, patent, and production. Corning invests a vast amount of their
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revenue (10%) in Research and Development. Therefore, the forte of the company is in the
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amount of talent, and the culture of knowledge sharing (Henderson and Reavis, 2009).
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The firm’s organizational structure is set up to encourage innovation. The company

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set up two committees that oversee innovation: the Technology Council (CTC) and the
Growth and Strategy Council (GSC). The CTC determines from an early stage if ideas were
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worth pursuing. GSC decides if projects are considered high potential and worth investing in.
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Corning Incorporated BCG Matrix
The Boston Consulting group’s (BCG) matrix is designed to help with long-term
strategic planning, to help a business consider growth opportunities by reviewing its portfolio
of products to decide where to invest, to discontinue or develop products (Hanlon, 2016).
With regards to Corning Incorporated’s four business divisions, the
telecommunications unit is a cash cow. It has been in operation for over decades and has
earned Corning a significant amount in revenue. The market share for Corning is high, but
the overall market is declining as companies manage their supplier themselves rather than
outsourcing it. Corning’s Environmental Technologies are high in growth but have a low
market share (question mark). The Life Science unit manufactures glass and plastic
consumables with scientific applications (Henderson, 2009), but has low market share and
experience slow growth (dog). Corning’s Display Technologies is the star of the firm. It
operates in a high growth market and has a notable market share.
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Strategies and Implementation
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Forward Vertical Integration. Corning Display Technology division can pursue a
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forward vertical integration strategy by moving down the value chain into manufacturing
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display panels (Ketchen & Short, 2012). Instead of just selling glass substrates to display
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manufacturers (where the customers are few), the firm can generate higher profit by
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manufacturing and marketing their own display in the large LCD market (Institute of Physics,
n.d). This vertical integration can be achieved by acquiring a smaller display manufacturer.
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Restructuring (Spin-Off). On the overall, the firm is doing well though not all its
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divisions such as the Life Science. There are increasing pace of demand from customers and
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need for more rapid innovation, however, all decision-making power on the pace, innovation,
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investment across the programs, pricing strategies all sit with Growth and Strategy Council
(GSC) that meets only when the need arises (Henderson & Reavis, 2009). Hence, with such
increasing business opportunity, from across four divisions, GSC will not have time to meet
up with the decision-making pace that is required. Also, as one of the division VP, Jim Nagel
describes the GSC decision maker as being out of touch with trending technologies and
business opportunities, the GSC should be positioned as the technical supporting arm to ask
the “hard question” rather than a problem solving body (Henderson & Reavis, 2009).
Considering the BCG matrix and the prevailing challenges, the Life Sciences should
be set up as a new company whose stocks are owned by Corning Incorporated’s investors.
According to Ketchen & Short (2012), one key advantage of spinning-off, it reduces layers of
management, hence, bringing out low cost and speedy decision-making processes.
Conclusion
Corning incorporated is continuously developing to keep its position as a world
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leading material’s company. The four core businesses of Corning Inc. are profitable and
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researchers are always working on the next innovation. Based on the BCG matrix vertical
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integration through acquisition and creation of a new company seem the best strategies for
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Corning Inc. going forward. Investment in research and development especially on
environmental technology also seems as a potential profitable opportunity.

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References
Hanlon, A. (2019, July 16). How to use the BCG Matrix Model. Retrieved from
https://www.smartinsights.com/marketing-planning/marketing-models/use-bcg-
matrix/
Henderson, R. & Reavis, C. (2009). Corning Incorporated: The Growth and Strategy
Council. MIT Sloan School of Management. Retrieved from:
https://mitsloan.mit.edu/LearningEdge/strategy/CorningIncorporated/Pages/default.as
px
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Institute of Physics. (n.d). Liquid-crystal displays. Retrieved from
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https://www.iop.org/cs/page_43666.html#gref
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Ketchen, D & Short, J. (2012). Strategic Management: Evaluation and Execution. This book
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is licensed under a Creative Commons by-nc-sa 3.0 license.
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Running head: CORNING INCORPORATED GSC 1

University of the People

Alvin Menyon, Jr.

Instructor: Prof. Donna Pepper

Corning Incorporated, based in New York, is an American multinational company

worldwide telecommunication crash in 2002 (Henderson and Reavis, 2009).

The firm’s organizational structure is set up to encourage innovation. The company

Corning Incorporated BCG Matrix

of products to decide where to invest, to discontinue or develop products (Hanlon, 2016).

With regards to Corning Incorporated’s four business divisions, the

operates in a high growth market and has a notable market share.

Corning incorporated is continuously developing to keep its position as a world

environmental technology also seems as a potential profitable opportunity.

Council. MIT Sloan School of Management. Retrieved from:

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