Corporate Strategy Analysis
Corporate Strategy Analysis
Kayla Colombo
MGT230
November 10th, 2014
Ronald Sprague
Corporate Strategy Analysis
The four basic alternatives when using corporate strategy in the planning function of management are concentration, vertical integration, concentric diversification, and, conglomerate diversification. After viewing the Destination CEO videos regarding Coco-Cola, Southwest Airlines, VF Corporation, and, Xerox, I can easily identify the strategy used by each CEO. Coca-Cola CEO Neville Isdell retired from Coca-Cola in 2001 after serving 35 years with the company. When Mr. Isedell left Coca-Cola sales began to drop, there was high turnover, and low morale threatened the company’s future. Mr. Isdell recognized the need for a new strategy and change, after seeing what other competitors were doing. He seen that Pepsi had diversified their options and Coca-Cola needed to do the same. I believe vertical integration strategy was used here. Coca-Cola bought the product vitamin water, in order to dive into the non-carbonated beverage sector market and expand within the industry. Coca Cola is trying to control the global market through aggressive strategy and branding campaigns, with its carbonated and non-carbonated beverages.
Southwest Airlines CEO Gary Kelly has managed to keep the company afloat as one of the most profitable airlines in the country. Mr. Kelly always travels at the back of the aircraft, talking to customers and taking notes of their expectations and complaints. I believe that Mr. Kelly used the concentration strategy to focus only on the airline industry to sustain the company’s profitability. In order to maintain profits, CEO Gary Kelly’s strategy was to keep cost low, fly the same 737 aircrafts so that parts and maintenance stay easy, and treat all customers like kings and queens including employees. Business week (2014) However, Southwest Airlines must expand in the future to remain a profitable company.
VF Corporation is the largest
Kayla Colombo
MGT230
November 10th, 2014
Ronald Sprague
Corporate Strategy Analysis
The four basic alternatives when using corporate strategy in the planning function of management are concentration, vertical integration, concentric diversification, and, conglomerate diversification. After viewing the Destination CEO videos regarding Coco-Cola, Southwest Airlines, VF Corporation, and, Xerox, I can easily identify the strategy used by each CEO. Coca-Cola CEO Neville Isdell retired from Coca-Cola in 2001 after serving 35 years with the company. When Mr. Isedell left Coca-Cola sales began to drop, there was high turnover, and low morale threatened the company’s future. Mr. Isdell recognized the need for a new strategy and change, after seeing what other competitors were doing. He seen that Pepsi had diversified their options and Coca-Cola needed to do the same. I believe vertical integration strategy was used here. Coca-Cola bought the product vitamin water, in order to dive into the non-carbonated beverage sector market and expand within the industry. Coca Cola is trying to control the global market through aggressive strategy and branding campaigns, with its carbonated and non-carbonated beverages.
Southwest Airlines CEO Gary Kelly has managed to keep the company afloat as one of the most profitable airlines in the country. Mr. Kelly always travels at the back of the aircraft, talking to customers and taking notes of their expectations and complaints. I believe that Mr. Kelly used the concentration strategy to focus only on the airline industry to sustain the company’s profitability. In order to maintain profits, CEO Gary Kelly’s strategy was to keep cost low, fly the same 737 aircrafts so that parts and maintenance stay easy, and treat all customers like kings and queens including employees. Business week (2014) However, Southwest Airlines must expand in the future to remain a profitable company.
VF Corporation is the largest
References: Bateman, T.S & Scott, AS. (2011), Management: Leading & collaborating in a competitive world (9th ed.); Retrieved from The University of Phoenix eBook Collection database. Business week (2014). Destination CEO video, Southwest Airlines [Video file].Retrieved from http://mhlearningsolutions.com/cs/cs.php Business week (2014). Destination CEO video, VF Corporation [Video file]. Retrieved from http://mhlearningsolutions.com/cs/cs.php Business week (2014). Destination CEO video, Coco Cola [Video file]. Retrieved fromhttp://mhlearningsolutions.com/cs/cs.php Business week (2014). Destination CEO video, Xerox [Video file]. Retrieved fromhttp://mhlearningsolutions.com/cs/cs.php