CORPORATE LEVEL-STRATEGY

GROUP 4 MEMBERS:

Iligan, Marinella & Reyes, Daniel

Meaning

Corporate level-strategy defines the destination towards which a business should move.
That decision shapes all the strategies and activities in every other part of that business.
A firm's management must consider how to gain a competitive advantage in business
areas the firm operates in.

A corporate-level strategy is an action taken to gain a competitive advantage through

the selection and management of a mix of businesses competing in several industries
or product markets.

A corporate-level strategy can be instrumental in outlining your company's goal for the
following year. You need to break down all steps that make it clear for your employees
the path they're supposed to take. The type of corporate-level strategy you select can
be an indicator of the company's financial success and the method they take to
generate profits.
Corporate level strategy is the foundation of your business. It defines the purpose of
your company and affects all the other strategies of your business.

Obani, Arianna

Types of Corporate-level strategy

When you're constructing your company's corporate-level strategy, you're seeking the
best ways to evenly distribute resources to serve the needs of the company to complete
planned objectives. It can also help you come up with a contingency plan, you remain
prepared to work under unforeseen circumstances.

1. Stability strategy- The stability strategy is when you proceed in working with
clients in your industry. This strategy also assumes that your company is doing
well under this current business model. Since the pathway to growth is uncertain,
you should employ a stability strategy to ensure incremental progress that still
brings in revenue, which includes practices such as research and development
and product innovation.
2. Expansion strategy- The expansion strategy is great for you if your company is
planning on creating new products and reaching new audiences. It can also be
used if you're upgrading the level of activity within your business like taking on
new clients and hiring more employees. You can apply this strategy if the region
 you're operating in has a strong economy or if your focus is to enhance your
performance.
3. Retrenchment strategy- A retrenchment strategy requires you to strongly
consider switching your business model. This may involve stopping the
manufacturing of a product or reducing its functionality. You may need to allocate
more energy to accounts receivable to ensure you're still getting payments of
services you provided to maintain your organization's cash flow.
4. Combination strategy- A combination strategy is a hybrid of the previous three
strategies to create your business model. Its main purpose is to increase the
company's performance and find out which areas of your company can grow and
retract based on market conditions.

Bonilla, Khyla & Estante, Kennette

Characteristics of a Corporate-level strategy

Diversification- is when you notice that you need to change the market you're
operating in. Moving into new markets allows you to create new business opportunities
with clients.

Forward or backward integration- is when you take the position of a company that
served a previous role in your supply chain.

Horizontal integration- happens when a business merges with another in the same
vertical.

Profit- This strategy is only dedicated to having more capital to spend once you take
out your expenses.

Turnaround- refers to increasing the effectiveness of existing products, so you can sell
more of them.

Divestment- is a retrenchment strategy that is aimed to resolve problems and enhance

your business results.

Liquidation- is the final option you can take if you own a company. You'll make this
move after you exhausted all options to increase the profits of your business.

Concentration- is an expansion strategy approach that adds more market shares to the
industry you're operating in.

Investigation- The investigation is the process of testing expansion and retrenchment

strategies.
No change- is often correlated with your stability strategy. It's important to highlight
where you need to upgrade your product to ensure usage and brand loyalty from
consumers.

Tobias, Daniela

Advantages of Corporate Level Strategy

1. Increase of the profitability

2. Guides about business optimization

3. Offers a Strategic Direction

4. Improves Decision Making

5. Improves management skills

6. Minimizes the Risk

7. Provides sustainability

Disadvantages of Corporate Level Strategy

1. Complex process

2. Requires huge expenditures

3. Uncertain estimates

4. Difficulty in achieving desired results

5. It is only helpful for Long-Term Problems

Iligan, Marinella & Reyes, Daniel

Examples of Corporate Level Strategy

• If your business has reached market saturation and you need to diversify to
survive, your corporate level strategy would be to spread to new markets. That
becomes the guiding force for everything your business does from now on.
• An example of a corporate-level strategy would be a leadership meeting planning
out 5-year goals.
• Examples include vertical integration decisions, strategies to maintain current
market share, acquisitions to enter a new sector, strategies to increase profit,
and methods to reduce loss.