Week 14 Journal
Week 14
1)
In your own words and using referenced
quotes describe the difference between business unit level strategy and
corporate level strategy?
2)
Discuss the corporate parenting style of
Virgin Group?
Answers
1)
Corporate level strategy covers the
strategic scope of the organization as a whole. These strategies occupies the
highest level of strategic decision making and covers actions dealing with the
objective of firm, acquisitions and allocation of resources and coordination of
strategies for various strategic business units for optimal performance.
In
other hand business level strategy is concerned with the way a business seeks
to compete successfully in the particular market. These strategies are
applicable in those organizations, which have different businesses and each
business is treated as a strategic business unit.
For
example, an organization of any size or diversity which use the corporate level
strategy usually applies for the whole enterprise while company with business
strategy, less comprehensive, defines the choice of product or service and
market of individual business within the firm.
2)
Virgin group is a British multinational
venture conglomerate company founded by Richard Branson. Their core business
areas are travel, entertainment, and lifestyles and consist of more than 400
companies worldwide.
Corporate
parenting refers to the level of management above that of the business units
and therefore direct interaction with buyers and competitors. There are
basically three styles of corporate parenting. They are portfolio manager,
synergy manager and parental developer.
The corporate parenting
of Virgin group comes under the synergy manager.
Under synergy manager the role of
corporate parents is to enhance the synergies across the business units. The
synergy managers focus on the freedom of work rather than hierarchy. Virgin
group companies work as a part of one big family rather than hierarchy. They
are empowered to run their own affairs through the coordination and planning
and solutions to the problems are often sourced from within the group. Virgin
group achieved strategic planning through envisioning building a common purpose
and motives, facilitating cooperation across businesses and providing central
resources and services which are even the management style that the company
been adopting.
References:
·
Online available from http://www.scribd.com/doc/12456190/Corporate-Parenting-Fundmentals [Accessed
March 3, 2013]
·
Dahal, R.K & Others., (2008).Strategic
Planning. Khanal Books Publications: Kathmandu.
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