Corporate Summary Analysis Discussion

Corporate Strategy Analysis Discussion Summary

Summer Teeters

MGT/230

January 19, 2015

Matthew Palmer

Corporate Strategy Analysis Discussion Summary

“All corporate strategy identifies the set of businesses, markets, or industries in which the organization competes and the distribution of resources among those businesses.” (Batemen, T.S & Scott, 2011) The three basic alternatives when using corporate strategy in the planning function of management are concentration, vertical integration, and diversification. After viewing the Destination CEO videos regarding Coco-Cola, Southwest Airlines, VF Corporation, and Xerox, the team summarized and discussed the background of each CEO and the corporate strategy used by each.

Coca-Cola CEO Neville Isdell retired from Coca-Cola in 2001 after serving 35 years with the company. After leaving Coca-Cola, sales began to drop, high-turn-over rate became the norm, and low morale threatened the company’s future. The board directors decided to vote on Mr. Isdell’s return as CEO, hoping to reverse the company’s sluggish performance. Mr. Isdell recognized the need for a new strategy and change, after seeing other competitors like Pepsi diversification into the fast food and snacks industry. In addition, Pepsi expanded into new business with Gatorade and Frito-lay. The team agreed by using vertical integration strategy, Coca-Cola bought the product Vitamin Water in order to dive into the non-carbonated beverage sector market and expand a selection within the industry. Coca Cola is trying to control the global market through aggressive strategy and branding campaigns with its carbonated and non-carbonated beverages.

While other Airlines struggle to maintain profits due to the increasing price of oil and gas, Southwest Airlines CEO Gary Kelly has managed to keep the company afloat as one of the most profitable airlines in the country. Although he never wanted to be a CEO, he turned out to be a very...