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Knowing your business-level and corporate-level strategy can maximize the life of your organization. The business-level strategy focus on creating a value offering that is appealing to consumers while also being cost-effective. The business-level strategies determine who they will serve, what product or service will meet the needs of their targeted customers, and how they will keep their customers satisfied (Harvard, 2012).

Corporate-level strategies help drive an organization and help determine what types of business and functional-level managers will choose to maximize on long-run profitability. Corporate-level strategies allow the organization to select the right pricing option that will allow them to maximize on profits. In general, corporate-level strategy deals with the organization as a whole. It examines what the business does and makes command decisions, including whether the business should diversify into different areas, leave product lines behind or develop specific partnerships with other companies (Lacoma, 2012).

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As we look closer into the organization, we will examine the roles firm’s core competencies play in the decision to diversity into a new business and determine why unrelated diversification have a worse performance record than related diversification. The roles firm’s core competencies play Core competencies are the collective learning in organizations, and involve how to coordinate diverse production skills and integrate multiple streams of technologies. It is communication, an involvement and a deep commitment to working across organizational boundaries.

It plays an important role in the organization because it gives the organization more opportunity to work with other of different skills and background. When the firm incorporate core competencies it give them ability to become more creative and more competitive (Core Competencies, 2012). Unrelated diversification verse related on performance Unrelated diversification is when an organization adds a new, or unrelated, product lines or services to their market. Unrelated diversifications can led to a decrease in profits, especially when a new product or service is being introduced to the market.

This is because new product and service requires additional testing and more advertising expense (The Differences, 2012). Related diversification is when a business adds or expands its existing product lines or markets. With related diversification you have the advantage of understanding the business and of knowing what the industry opportunities and threats are. This is why the performance level on related diversification is higher than that of an unrelated diversification (The Differences, 2012). Reference Core Competencies. (n. d. ).

QuickMBA: Accounting, Business Law, Economics, Entrepreneurship, Finance, Management, Marketing, Operations, Statistics, Strategy. Retrieved October 3, 2012, from http://www. quickmba. com/strategy/core-competencies/ Harvard Business School – Institute for Strategy and Competitiveness. (n. d. ). Harvard Business School – Institute for Strategy and Competitiveness. Retrieved October 3, 2012, from http://www. isc. hbs. edu/firm-corpstrat. htm Lacoma, T. (n. d. ). Business Level Strategy Vs. Corporate Level Strategy | eHow. com. eHow | How to Videos, Articles & More – Discover the expert in you. | eHow. om. Retrieved October 3, 2012, from http://www. ehow. com/info_7900064_business-vs-corporate-level-strategy. html#ixzz28HWKyVa0 The Differences Between Related Diversification and Unrelated Diversification. (n. d. ). More for Small Business: How to do Marketing SWOT Analysis and More?. Retrieved October 3, 2012, from http://www. more-for-small-business. com/related-diversification. html Latoya Scott-Bennett November 9, 2012 The Corporation Introduction Knowing your business-level and corporate-level strategy can maximize the life of your organization. The business-level strategy focus on creating a alue offering that is appealing to consumers while also being cost-effective. The business-level strategies determine who they will serve, what product or service will meet the needs of their targeted customers, and how they will keep their customers satisfied (Harvard, 2012). Corporate-level strategies help drive an organization and help determine what types of business and functional-level managers will choose to maximize on long-run profitability. Corporate-level strategies allow the organization to select the right pricing option that will allow them to maximize on profits.

In general, corporate-level strategy deals with the organization as a whole. It examines what the business does and makes command decisions, including whether the business should diversify into different areas, leave product lines behind or develop specific partnerships with other companies (Lacoma, 2012). As we look closer into the organization, we will examine the roles firm’s core competencies play in the decision to diversity into a new business and determine why unrelated diversification have a worse performance record than related diversification.

The roles firm’s core competencies play Core competencies are the collective learning in organizations, and involve how to coordinate diverse production skills and integrate multiple streams of technologies. Core Competencies deals with marketing activities, marketing competencies, selling and sales competencies. It is communication, an involvement and a deep commitment to working across organizational boundaries. It involves the organization coming together to work as one.

It plays an important role in the organization because it gives the organization more opportunity to work with other of different skills and background. When the firm incorporate core competencies it give them ability to become more creative and more competitive (Core Competencies, 2012). Unrelated diversification verse related on performance Unrelated diversification is when an organization adds a new, or unrelated, product lines or services to their market. Unrelated diversifications can led to a decrease in profits, especially when a new product or service is being introduced to the market.

This is because new product and service requires additional testing and more advertising expense (The Differences, 2012). Related diversification is when a business adds or expands its existing product lines or markets. With related diversification you have the advantage of understanding the business and of knowing what the industry opportunities and threats are. This is why the performance level on related diversification is higher than that of an unrelated diversification (The Differences, 2012). Reference

Core Competencies. (n. d. ). QuickMBA: Accounting, Business Law, Economics, Entrepreneurship, Finance, Management, Marketing, Operations, Statistics, Strategy. Retrieved November 9, 2012, from http://www. quickmba. com/strategy/core-competencies/ Harvard Business School – Institute for Strategy and Competitiveness. (n. d. ). Harvard Business School – Institute for Strategy and Competitiveness. Retrieved November 9, 2012, from http://www. isc. hbs. edu/firm-corpstrat. htm Lacoma, T. (n. d. ). Business Level Strategy Vs.

Corporate Level Strategy | eHow. com. eHow | How to Videos, Articles & More – Discover the expert in you. | eHow. com. Retrieved November 9, 2012, from http://www. ehow. com/info_7900064_business-vs-corporate-level-strategy. html#ixzz28HWKyVa0 The Differences Between Related Diversification and Unrelated Diversification. (n. d. ). More for Small Business: How to do Marketing SWOT Analysis and More?. Retrieved November 9, 2012, from http://www. more-for-small-business. com/related-diversification. html

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