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