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University of Phoenix Corporate Level Strategy Discussion
Luz Rosario
Respond in 125 words min
Hello Class and Professor,
Corporate level strategy is focused on providing an overall plan or direction that unifies diversified, related, or a multi-business company. The corporate level strategy is crafted by the CEO and senior level executives of each business segment. A business strategy focuses on developing the competitive advantage of a single entity or a single business unit within a multi-business company. The strategy is developed with the collaboration of senior level executives and functional area managers or key stakeholders.
Unilever is a global company that has over 400 brand names operating in 190 countries employing 149,000 people worldwide. The company is divided according to (3) divisions Beauty & Personal Care, Foods & Refreshment, and Home Care. Unilever owns such brands as Dove, Hellman’s, and Seventh Generation. The corporate strategy for the Unilever company is as follows:
- Develop a portfolio for growth (new developing industries)
- Continue to differentiate their products using innovation and purpose
- Aggressively pursue key growth markets (USA, India, and China)
- Pursue and develop new sales channels (eCommerce and eB2B platforms)
- Develop and cultivate leadership using digital systems, new learning tactics, and diverse representation to implement a growth culture
A business strategy from one of Unilever’s many businesses such as Seventh Generation will support the corporate level strategy of growth, innovation, and inclusivity but will adapt it to create an advantage within that industry or segment. The tactics or strategy employed by Seventh Generation might differ from Dove because they need to adjust their actions to fulfill the company objectives, and service a different consumer base. Seventh Generation’s strategies include:
- Differentiation by providing environmentally friendly goods using renewable energy and recycled materials
- Sustainable sourcing and the use of clean ingredients
- Distribution of products via various websites, natural food stores, mass retailers
- Continue to develop of the environmentally friendly products segment for consumers
Seventh Generation’s efforts support the overall corporate level strategy implemented by its parent company but are customized to fit the business’ purpose and need for resources. Seventh Generation benefits from the resources, economies of scale and scope of its parent company but is marketed in a different way from more mainstream brands such as Dove that can appeal to a wider consumer base and uses different sourcing materials. Unilever achieves consumer portfolio diversification and a stake in a growing industry with its ownership of Seventh Generation.
References
Seventh Generation. (n.d.). About. Retrieved September 2, 2021, from https://www.seventhgeneration.com/about
Thompson, A., Peteraf, M., Gamble, J., & Strickland, A. (2020). Crafting & Executing Strategy: The Quest for Competitive Advantage: Concepts and Cases 23Rd Edition (International Edition) Textbook only (22nd ed.). McGraw-Hill Education.
Unilever global company website. (n.d.). All brands. Retrieved September 3, 2021, from https://www.unilever.com/brands/view-all-brands/?p…
Unilever PLC. (2021, August 18). Strategy. Unilever. https://www.unilever.com/our-company/strategy/
Kassandra Stoeckel
Respond 125 words min
Class,
Business level strategy is focused on the ability to keep the organization competitive. Corporate level strategy is focused on things like diversification and how it can merge into other areas, locations, or different product lines. Let’s consider this: a local coffee shop, which has 20 locations throughout the Midwest, is focused on how to remain competitive in the times of gas station coffee, Caribou Coffee and Starbucks. While it’s main focus is coffee, it also knows that one of things that these large corporations do well is additions to that coffee, such as sandwiches, donuts, scones, and other non-coffee related items. By ensuring that they are continously creating new menu items, they know they will remain competitive locally. Their focus is local, concentrated, and the focus remains mostly on how to stay competitive at the local level.
Starbucks Corporate, however, is not focused on remaining competitive in their local store areas, at the local store level. The corporate part of Starbucks is focusing on how they can expand. This means diversification, adding the acquisition of smaller coffee shops, and expanding into other product lines and physical territories. Corporate Starbucks might be more focused on how to enter Japan, for example, than how to remain competitive within the downtown Rochester, MN market. They already know that they have a competitive advantage and can keep costs low through high distribution.
