Question

1. What is the difference between a corporate strategy and a business strategy?

2.How are the business strategy typologies by Porter and Miles & Snow similar? How are they different?

3.Why might one expect the performance level of midsize business units to be lower than the performance level of either small or large business units?

Answer 1

Solution to 1:

Business strategy is the decision making which helps to achieve goals that will help to successfully run one's business. Business startegies are created by the Mid level management and deals with particular business unit or divison. Usually it involves short term Staregies.

Corporate Strategy on the other hand determines how the corporation as a whole supports and enhance the value of the business. Its usually concerned with the overall purpose of the organization. These strategies are created by the top level management. Plans are long term which gives maximum profitability and Business growth.

Solution to 2:

They are different as startegies they have proposed are different:

Miles & Snow: Prospector, Analyzer, Defender, Reactor.

Defenders focus on improving the efficiency of their existing operations. Prospectors always search for new market opportunities. Analyzers show some characteristics of both prospectors and defenders. They try to achieve efficient production for current lines and, at the same time, they emphasize the creative development of new product lines. Reactors have no systematic, proactive strategy.

Porter: Cost leadership, Differentiation, Focus, Stiuck in the middle.

It suggests that differentiation, cost leadership and focus are the strategies that provide firms with the ability to attain a competitive advantage and outperform rivals in an industry. He defines stuck in the middle as a firm’s unwillingness to make strategic choices and its attempts to compete by every means

Both of these approaches are focusing on the organizational efforts and a given market segment.

Solution 3.

False.