Strategy Strategy refers to planning and goal setting to reach long-term and big
ID: 395898 • Letter: S
Question
Strategy Strategy refers to planning and goal setting to reach long-term and big-picture objectives, as opposed to tactics, which refers to the execution of strategies. For example a business might create a brand strategy that targets affluent consumers to segment the market, creating a low-volume, high-margin path to profitability. The tactics to create this brand image would include efforts such as setting higher prices to create perceived value and selling only in upscale retail locations.
Corporate Strategy Corporate strategy focuses primarily on profitability. Corporate strategies include: creating an organizational structure, debt reduction to improve the company’s balance sheet, diversifying the product or service line to increase profits or decrease dependence on one product, merging with or buying another business to create economies of scale, accessing new technology and increasing sales volume, reducing overhead costs to increase profit margin, retooling to decrease production costs and reducing overall operating expenses.
Explain how the two strategies will intersect to produce a successful plan for McKesson Corporate Company.
Explanation / Answer
Answer:
These two strategies will intersect to produce a successful plan for McKesson Corporate Company as below
Use of Strategy for the McKesson Corporate Company: We will plan to mix the basic strategy approach and the corporate strategy approach for building the successful plan for the McKesson Corporate Company. The mixing will call for selection of key strategy points from basic strategy and key points from corporate strategy.
Points from Basic Strategy are as below:
Planning and goal setting for the organization
Strategy execution as per plan.
Identify key product options that will attracts customer forlonger duration
Identify key products that are with high margin, so that business gets the breakeven revenue
Create functional excellence so that business growth and success can be achieved.
Points from Corporate Strategy are as below:
Primary focus of profitability
Develop organizational structure to support the business in short term and capable to expand in long term.
Minimize cost and expenses so that company becomes stronger.
Explore product suitable for diversification in long term
Improve profitability of products and service lines
Create competency to manage alternate businesses in long term
Thus these points will be together makes a successful plan for the McKesson Corporate Company, so that they can achieve their target business objectives in their long terms as well as in their short term.