Question

Describe the three stages of planning. Explain how they are related.

What is the relationship among corporate, business, and functional-level strategies, and how do they create value for an organization?

What is the difference between vertical integration and related diversification?

Answer 1

Question:- Describe the three stages of planning. Explain how they are related.

The three steps of planning are given as below:-

Determination of different goals and different objectives which are to be accomplished.

Determining the different plans which can be used to accomplish the decided objectives of goals

Implementation of the plan and evaluating the plan for the effectiveness in accomplishing the goals.

Before making any sort of plan, it is very important to determine the different types of objectives of goals which are to be accomplished. If a person has the goals and objectives which are to be achieved but lacks the proper planning, then these goals and objectives are never going to be accomplished. If the plan is developed and executed, it is important that the plans must be evaluated in order to determine the relevance of the plan in accomplishing the established goals and objectives. In any of these three steps is missed, it will not be possible to have the proper execution and efficient plan.

Question- What is the relationship among corporate, business, and functional-level strategies, and how do they create value for an organization?

A corporate level strategy can be defined as a plan which provides the information about which industry and national market are going to be approached by a certain organization. On the other hand, the business level strategy is mainly associated with the determination of the manner in which an organization is intended to compete in the industry against its rivals or competitors. While the functional level plan can be stated as a plan of action which is adopted by the managers of various functional departments so that they can enhance the capability of each function to execute its function related activities.

It is very critical to have the consistency in the all these three strategies while making the plan. Once consistency is accomplished, the efficiency of the organization improves significantly and it can function effectively.

Question:- What is the difference between vertical integration and related diversification?

Related diversification can be seen as a strategy which facilitates the organization to enter in a new business or industry having the intention of developing a competitive advantage by utilizing its current and existing strong points or core competencies. The value addition takes place in case of related diversification when different methods are found by the managers for the various departments or business unit in order to distribute and share the vital capabilities or resources in order to accomplish greater synergy.

Vertical integration can be seen as a strategy which facilitates the new business which can either facilitates the inputs for the products of the organization which is termed as backward vertical integration or help the organization in the selling or distribution of the products which is termed as forward vertical integration