Mariano Marcos State University

College of Business, Economics and Accountancy

Batac City, Ilocos Norte 2906

BA 27- Strategic Management

Second Semester, SY 2021-2022

Performance Task
Corporate Level Strategies

NOTE: READ THE INSTRUCTION CAREFULLY BEFORE PROCEEDING WITH THE PERFORMACE TASK.

Instruction: Identify a company, local or international, that employed the corporate-level strategies
listed in the matrix below. In column 2, briefly describe in 2-3 sentences how the strategy has been
executed by the company. In column 3, explain also the reasons or contributing factors why the
strategy has been adopted by the company you have identified. DO NOT USE EXAMPLES THAT WERE
ALREADY GIVEN IN CLASS. Submit your outputs using the format LASTNAME, FIRSTNAME, MIDLE INITIAL
PERFORMANCE TASK 1 (Example: ADRIATICO, CARMELA G. PERFORMANCE TASK 1) to the email address
BA27.MM2A@gmail.com.

STRATEGIES COMPANY THAT EMPLOYED REASONS/CONTRIBUTING

THE STRATEGY
INTEGRATION STRATEGIES
Forward Integration Myntra- is an e-commerce
company based in India which
offers variety of footwear,
clothing, accessories, and
lifestyle products. The company
recently launched its own
Logistics service called Myntra
Logistics as a way to directly
provide and deliver its products
to its customers without having
the need to hire third party
logistics at a higher cost.
Backward Integration Ford Motor Company- an
American Multinational
automobile manufacturer
established in the early 1920s.
During the first phases of the
company’s operation, it created
subsidiaries or manufacturers
that will create key inputs for its
automobiles in the form of:
rubber, gas, and metals. Having
its own supplier the company
therefore applied backward
FACTORS OF EMPLOYING THE
STRATEGY
Myntra aims to cut costs since
hiring and contracting third
party logistics were costly. The
company also wanted to
improve the turnaround time
and ensure that the products
are delivered to customers at
the right place and right time.
Automobile was a growing
industry in the early 90s and the
rise of global demand for
quality and reliable cars were
one of the main focuses of car
manufacturers. Ford wanted to
make sure that the production
of their cars were not
compromised by suppliers
unstable prices therefore they
created their own supply
factories in order to address this
 integration.
Horizontal Integration Exxon and Mobil- back in the
90s these two companies were
huge rival in the oil and gas
industry. In 1998 both
companies agreed to a merger
agreement which amounted to
73 billion dollars which made
the merged company the third
most valuable company in the
world.
INTENSIVE STRATEGIES
Market Penetration Heinz- an American Food
processing company greatly
known for its ketchup. The
company conducted market
penetration by changing the
promotion part of their
marketing mix by launching a
1.2 million budget in the
intensive promotion of their
products. Heinz applied the
concept of market penetration
as a means of increasing
consumer awareness and
therefore maintaining the
product relevance in the market
place.
Market Development National Basketball Association
(NBA) - the NBA has always
dominated the market for
basketball in the USA. The
company identified the
opportunity to serve televised
game of basketball to different
parts of the world such as China
wherein they invested
significant amount of resources
and years of negotiation just to
bring NBA to the country. By
the year 2008 the NBA
succeeded in the agreement
issue. Ford also wanted to
maintain the quality of cars
manufactured by making sure
that raw materials were in good
quality and meet their
requirements.
Exxon and Mobil decided to
merge as one which is a type of
horizontal integration as a way
to address the falling oil prices
and increasing global
competitive pressures. The
merger has allowed both
companies to operate together
and use each other’s
competitive advantages for the
betterment of the company.
Heinz struggled to maintain
market command especially
when the country which the
company operates was under
recession. The company relied
in their intensive marketing
campaign as a way to maintain
their leadership and dominance
in the market.
NBA has considered China to be
a promising market for their
games and considering the vast
population of the country the
company can generate tons of
sales from it. The organization
wanted to expand its market by
targeting those that are enticing
and promising just like China
whose population and economy
were at the peak of its growth
at that time.
 and brought televised NBA
games to the country which
produced a whopping 4 billion
dollars as revenue for the
organization.
Product Development IBM- one of the world top
manufacturers of computer
hardware. In the early 1993s
IBM faced steep competition
due to rising number of
computer hardware
manufacturer in the market
which made their product sale
decrease as well as their profit.
IBM needed to find a way so
they decided to develop their
product offering by modifying
the hardware into software
manufacturing that focuses on
IT consulting services and
computing research which
brought back the profitability of
the company and also their
leadership in the market.
DIVERSIFICATION STRATEGIES
Related Diversification Honda Motor Company- the
company is famous for its cars
and trucks and a successful
automobile manufacturer in
Asia. The company diversified
its operations thru venturing in
the motorcycle industry and
started creating their own
motorcycles. Honda applied
related diversification since the
company is operating in
automobile and the motorcycle
industry is related to it.
Unrelated Diversification Walt Disney- it is one of the
world’s best known brands and
it operates a wide variety of
businesses. It is considered as a
conglomerate company because
it operates in different business
segments with different
businesses mainly: movies,
music, television production,
live theater productions, toys
Driven by steep competition
which initially resulted in the
decreased in the overall product
sale of IBM.
The company also wanted to
save their falling performance
that’s why they decided to
innovate their product offering
which ultimately led to the
resurrection of the company’s
operation.
The company aims to expand its
product portfolio and they saw
the opportunity to diversify in
the motorcycle industry. With
its high end manufacturing
technologies, Honda aims to
leverage its competitive
advantage in the cars and trucks
manufacturing down to their
motorcycle manufacturing.
Walt Disney aims to diversify its
product portfolio by acquisition
and mergers of different
businesses in order to expand
sales as well as generate more
revenue.
Walt Disney has a huge market
share and control and they are
maintaining it thru diversified
operations that cater different
 and clothing. The company has segments by offering different
managed to entertain and services and products.
satisfy customers as well as
generate income coming from
different business sources.
DEFENSIVE STRATEGIES
Retrenchment Philips Electronics- the
company has been operating in
over 150 countries worldwide
and employing huge numbers of
employees to suffice the scope
of the company’s operations.
The company operates in four
key segments namely:
Consumer Electronics, Medical
Systems, Lighting, Domestic
appliances and Personal Care.
By the year 2012 the company
applied the Retrenchment
Strategy by means of cutting
down the number of human
resources roughly estimated to
more than 2200 jobs from the
lighting and healthcare
segments.
Divestiture Johnson & Johnson- a Johnson & Johnson is a much
pharmaceutical manufacturer
that is diversified and operates
in a global basis. The company
divested one of its division
which is the Ortho Clinical
Diagnostics which makes blood-
screening equipment and
laboratory blood test. The
company sold the division to a
private equity firm Carlyle
Group for 4.15 billion dollars.
Liquidation Pan American World Airways
(Pan-Am) - was considered to
be the largest international air
carrier back in the days. As the
Factors that pushed the
company to apply the
retrenchment strategy were to
address the unstable macro-
economic conditions from
different countries which they
operate in. High Pension cost
was also a reason since the
company employed huge
amount of employee which in
turn took a tool from the
company’s profit as they
needed to pay for pensions of
employee. They decided to cut
off some of the jobs from their
divisions in order to regulate
their finance so as to not waste
huge amount of money.
diversified company and just
like all diversified companies
they face the struggle to
manage different divisions at
once. The company was forced
to divest the division as a way
to lessen the burden of
responding to numerous price
increases, patent expirations,
and pressure from
governments. Furthermore, the
division is considered to be
unfavorable for the company
and is viewed as a slow-growing
business that is why they
decided to divest it and just
focus on those that is
performing well.
One of the reasons that led to
the company’s demise is their
mishandling of investments. The
company over invested in their
 Airline company slowly
crumbles down they filed for
bankruptcy protection in 1991
and sold their remaining
profitable assets to Delta Air
Lines for 416 million dollars.
current operation and did not
consider investing for future
plans and alternatives. The start
of Gulf War initially led to their
downfall because of the drastic
rises of fuel prices which made
their operations costly and they
started to loss customers and
then eventually filed for
bankruptcy protection.

Reading Resources:
Forward Integration: Meaning, examples, Advantages and Disadvantages. (2021, December 31).
HARAPPA. https://harappa.education/harappa-diaries/forward-integration/#heading_2
Backward Integration: Meaning, examples, Advantages and Disadvantages. (2021, December 31).
HARAPPA. https://harappa.education/harappa-diaries/forward-integration/#heading_2

Ludwig. S. (n.d.). 10 Hugely Successful Companies that Reinvented Their Business. Good Company.
https://www.uschamber.com/co/good-company/growth-studio/successful-companies-that-reinvented-
their-business/amp

Edwards J. (n.d.) Mastering Strategic Management- 1st Canadian Edition: Diversification Strategies.
https://opentextbc.ca/strategicmanagement/chapter/diversification-strategies/

What is Market Development Strategy? (n.d.). The Startup Finance Blog.

https://www.lightercapital.com/blog/what-is-market-development-strategy-definition-examples/

Ashley P. (April, 18). 10 Businesses that failed to adapt. E-careers. https://www.e-

careers.com/connected/10-businesses-that-failed-to-adapt

Meghan F. (2016, March 14). J&J Continues ‘Strategic Pruning’ With This Divestiture. Wall St. Watchdog.
https://www.wallstwatchdog.com/money-career/jj-continues-strategic-pruning-with-this-divestiture/

The Retrenchment Strategy: Philips Electronics. (n.d.). CRAM. https://www.cram.com/essay/The-

Retrenchment-Strategy-Philips-Electronics/FCWXHND9FG

David S. (2018, October 29). An Example of a Company Conglomerate.

https://smallbusiness.chron.com/example-company-conglomerate-14699.html