Question: 
  1.  Select any multinational corporation of your choice and explain various strategy levels of the same. Explain any two decisions taken at each level in an organisation 

 

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BeingSkilled's picture

Organizations develop strategies at four different levels: 1. Corporate Level Strategy

  1. Process of defining the overall aim, character and purpose of the organization.

  2. How will the business flow be like and how will the resources be distributed within the business.

  3. Top management is involved.

  4. Risky decisions are taken.

  5. Amazon’s Corporate Level Strategy –

i. It is concentric diversification. It leverages different technological capabilities for business success and following a cost leadership strategy to offer maximum value to users for lowest price and form the Amazon a go-to portal for all their shopping needs.

ii.

  1. Their focus has been on economies of scale, leveraging

    technology highly, leveraging business efficiencies from the

    synergies of different resource.

  2. Usage of Big Data Analytics – Data mining to understand the

    trending items and fulfilling the inventories accordingly.

  3. Offering the recommended products which increased the sales dramatically and making users buy more and therefore

    increasing the total revenue of the organization.

  4. Amazon’s strategy is also built around the convenience aspect as buyers don’t need to go to any physical location for the

    purchase.

f. Two decisions taken by the organization were:

  1. Focusing on the pricing model – Having the lowest cost for

    all the products as compared to their competitors.

  2. Focusing on excellent customer support.

2. Business Level Strategy – It involves strategy around managing the interests and operations of a particular unit within the organization.

  1. Functional Level Strategy – It is the process of determining policies and procedures for different functions of an enterprise like marketing , finance, IT, etc.

  2. Production Level Strategy – It is the process of determining the cost, quality, raw material, quantity, etc. Of the product the organization manufacture.