External and Internal Environments

Business Level and Corporate Level Strategies

BUS 499- Business Administration Capstone

Business Level and Corporate Level Strategies

Introduction

In this assignment, the Business and Corporate Level Strategies of the public corporation that was chosen in assignment on will be analyzed to identify the most important strategy of each category for long-term success. Fiat – Chrysler, or FCA, is the public corporation that was selected. In addition to the Strategies being analyzed, the competitive environment will also be scrutinized. To make a suitable and comprehensive strategy on either the business or corporate level, managers cannot depend on just instinct and good guesses. Managers should utilize applicable data that unswervingly flows from the study of their organization’s environment. Most firms will explore the SWOT analysis to determine strategies for the internal and external environments (7). SWOT is an acronym used to describe the Strengths, Weaknesses, Opportunities, and Threats that are strategic factors for a specific company. A SWOT should represent an establishment’s core competencies while also classifying opportunities that the company is unable to currently use for its advantage due to a break in resources (7).

Enquiry and precise data are necessary to detect main problems in an organization’s environment. Especially when operating in a large industry environment such as the auto industry. FCA Operates within the automobile industry (1). The automotive industry, are all the corporations and happenings involved in the manufacture of motor vehicles, including most mechanisms, such as engines and car-bodies. However, it does not include tires, batteries, and fuel (2). The SWOT analysis will assist corporations of choosing business level and corporate level strategies.

Analyze the business-level strategies for the corporation you chose to determine the business-level strategy you think is most important to the long-term success of the firm and whether or not you judge this to be a good choice

A Business Level Strategy is an integrated and coordinated set of commitments and actions to firm uses to gain a competitive advantage by exploiting core competencies in specific product markets. There are five business level strategies that companies will chose from. They include: Cost Leadership, Differentiation, Focused-Cost Leadership, Focused-Differentiation and Integrated Cost Leadership/Differentiation, Involves in engaging in primary value chain activities and support functions that allow a firm to simultaneously pursue low cost and differentiation.

Analyze the corporate-level strategies for the corporation you chose to determine the corporate-level strategy you think is most important to the long-term success of the firm and whether or not you judge this to be a good choice.

A Corporate Level Strategy specifies actions a firm takes to gain a competitive advantage by selecting and managing a group of different businesses competing in different product markets. The primary reason a firm uses a corporate level strategy is to become more diversified is to create additional value. provides to customers for the purpose of creating value for them. Corporate Level Strategies are: Related Linked Diversification, Related Constrained Diversification, Unrelated Diversification and Both Operations and Corporate Relatedness.

Analyze the competitive environment to determine the corporation’s most significant competitor. Compare their strategies at each level and evaluate which company you think is most likely to be successful in the long term

Most significant competitor to FCA is the Ford Motor Company involves research and development, innovation and application of knowledge. For the Demographic Segment, this includes, geographic distribution, brands that all can afford and brands that attract all ages. In the

Determine whether your choice from Question 3 would differ in slow-cycle and fast-cycle markets.

An opportunity is a state in the general environment that if exploited successfully, helps a company attain strategic competitiveness (5). The greatest opportunity is creating a product that is non- substitutable. FCA should establish electric, aerial and solar partnerships to go forward with inventing and manufacturing energy efficient and flying vehicles. If they could be first as they were regarding the 4X4 technology, this will help them move into established differentiation and assist with creating a non-substitutable product.

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