Business Strategy, Corporate Strategy and International Strategy

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nBusiness Strategy, Corporate Strategy and International Strategy

nIntroduction

nFor a business to succeed it needs to adopt effective competitive strategies. Profitable businesses also exploit different strategic advantages. Moreover, companies acquire competitive advantages by outdoing their rivals in some areas of business. However, there are some differences between Business Strategy, Corporate Strategy and International Strategy (Barney and Hesterly 1).

nBusiness Strategy

nBusiness strategy refers to the decisions that a firm initiates on its ways to formulating sustaining and applying its competitive advantages. Following evaluation of the competition, target market and product line, a company is able to identify areas where its competitive advantages exist (Wheelen and Hunger 10). For instance, a company might discover that it cannot effectively compete with its business rivals on the price of its goods. Similarly, small companies are unable to compete with large companies on prices because it benefits from economies of scales; hence, has the ability to offer low prices for its products (Barney and Hesterly 1). In such cases, a small company should select a differentiation strategy that concentrates on the quality, freshness and other qualities that customers will appreciate enough to pay the additional cost. In addition, business strategy has the ability to influence the operational decisions of any organizations (Wheelen and Hunger 11). For instance, different companies will choose their distribution and promotions channels that helps in marketing their products.

nCorporate Strategy

nWhen a firm recognizes the opportunities that exist outside its business, it deliberates on how to diversify. In these cases, extra firms are part of the main business. Corporate strategies refer to decisions that are made in order to manage various small businesses within the same company (Wheelen and Hunger 12). More significantly, corporate strategy assists the umbrella company to improve on competitive advantage, profitability and efficiency in every business unit (Barney and Hesterly 1). Corporate strategy is effective if the original company can initiate and extend an integrate procurement or management over various small businesses.

nInternational strategy

nInternational strategy refers to a global strategy for a multinational company. Such company may adopt a model, which facilitate expansion of business in other countries. Therefore, international strategy concentrates on actions that take place multinational businesses in the private sector. However, international strategy may involve business activities across country boundaries, but it depends on home market resources (Wheelen and Hunger 13). Such companies must initiate strategies that cater for diverse cultures and markets in the world. Additionally, they begin with market analysis and increasing their competition. Similarly, for such strategies to succeed, a firm should identify a strategy of entry and customer base for their product or services.

nThree Dimensions of Corporate Strategy

nThere are three dimensions of corporate strategy, which include geographic scope, vertical integration and business diversification. Specifically, business diversification refers to horizontal expansion, which suggests that any new services or products must provide possibly profitable returns. Additionally, it should offer the firm a strategic advantage (Wheelen and Hunger 13). If a company in a new sector satisfies these qualifications, the firm may raise its profits by implementing a plan to diversify. Secondly, vertical integration refers to backward or forward expansion. It refers to the practice of expanding business operations into new areas with an aim of reducing a companys dependability on other organizations in the process of distribution and production. Vertical integration forces the company to start new areas of business operations (Wheelen and Hunger 15).

nThe third dimensions involve geographic scope or global expansion. It encompasses a formal strategy of the company to expand its functions and operations in different regions, countries or continents across the world. To achieve the global status, a firm must open up businesses in multiple geographical locations (Barney and Hesterly 4). Global strategies of expansion include strategic partnerships, licensing, exporting goods and formulating new facilities.

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nWork Cited

nBarney, Jay B., and William Hesterly. Strategic management and competitive advantage concepts and cases. Pearson, 2015. Print.

nWheelen, Thomas L., and J. David Hunger. Concepts in strategic management and business policy. Pearson Education India, 2011. Print.