Instructions
DQ 6.1
1. Corporate strategy is primarily about the choice of direction for a firm as a whole and management of its business or product portfolio. Corporate strategy includes decision regarding the flow of financial and other resources to and from a company’s product lines and business units. Through a series of coordinating devices, a company transfers skills and capabilities in one unit to other units that need resources. In this way, it attempts to obtain synergy among numerous product lines and business units so that the corporate whole is greater than the sum of its parts. All corporations, from the smallest company to multinationals, must at one time or another consider these issues.
a. Why is it important to evaluate corporate strategies and what are 4 ways to evaluate corporate strategies?
b. Briefly describe each of the portfolio analysis matrices including how it is used, the cells in the matrix, and its advantages and drawbacks.
c. Why might an organization’s’ corporate strategy need to be changed? How might it be changed?
d. After reading “Strategic Managers in Action: Judson C. Green, Navteq Corporation,” do you agree with Green’s decision? Can you suggest other ways Navteq could either backwardly or vertically integrate?
DQ6.2
2. Read Strategic Management in Action Cases: Case #4 “Changing the Menu.”
a. Post Describe Kraft’s competitive strategies.
b. What strategic challenges does CEO Rosenfeld face?
c. Which evaluation measures should Kraft use? Explain your rationale.
d. Go to Kraft’s website and evaluate revenues, profits, and strategic initiatives.