Corporate Strategy Analysis Discussion Summary
Billie Jo Rose
MGT/230
June 8, 2015
Lastacy Whitman
There are several different corporate strategies used in today’s business environments. Concentration, Vertical Integration, Concentric diversification and conglomerate diversification are the strategies covered in this summary. After team B viewed and discussed the Destination CEO Videos, Summary of Corporate Strategies diagram and discussion on pp. 144-146 of your text, this is the findings for the assignment.
After watching the Coke video, CEO Isdell came out of retirement with the idea coke needed something new to wow the customers with. Not unlike the competitor Pepsi. Vertical Integration and concentration is the strategy employed by Isdell with the new line of non- carbonated beverages to be offer to the public. After my discussion with my team I can also see where Isdell used diversification to pull the company out of its slump by reaching out into the snack foods industry.
Southwest Airlines CEO Kelly has used a concentration strategy for the company. He aims to keep costs down, use the same type of plane (which will lower the cost of maintenance), treat the customers like Kings and Queens and the employees even better. The only part I found wrong in this video was the next sentence. Kelly is asking the staff to work double gates. There are more cost cuts coming in the future just not sure what they are. After my discussion with my team, I am in agreement; Kelly wants to keep airfare down and is trying to find other places to cut costs.
CEO McDonald of the VF Corporation is the largest distributer of jeans. VF Corporation is known for the labels of Wrangler, Lee, North Face, and Nautica. McDonald has not been one to keep on the trendy fashions of the times. He has always stuck with commodity brands. VF Corporation has embraced a concentric diversification strategy and is now leaning towards the lifestyle brands and wants to have 60% of the company focused on this type product. One of our team members believes McDonald is using concentration strategy for VF Corporation. They are under the assumption the CEO wants to focus on the product in hand. I do not feel this way at all. I believe the VF Corporation is venturing into the lifestyle brands as a means to boost revenue. They want to stay with the commodity brands but venture into the lifestyle
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