HRM200 Lecture Notes - Lecture 3: Vertical Integration, Vision Statement, Strategic Management

• School: University of Waterloo
• Department: Human Resources Management
• Course: HRM200
• Professor: William Peckham

Document Summary

Vision statement: a general statement of the firms intended direction that shows, in broad terms, what we want to become. Corporate strategy: for example, with a concentration (single business) corporate strategy, the company offers one product or product line, usually in one market. Company (which makes a spray hardware lubricant) is one example: a diversification corporate strategy implies that the firm will expand by adding new product lines. Over the years, pepsico added chips and quaker oats. Thus, apple opened its own apple stores: with consolidation strategy, the company reduces its size, with geographic expansion, the company grows by entering new territorial markets, for instance, by taking the business abroad, as pepsico also did. Competitive strategy: identifies how to build and strengthen the businesses long- term competitive position in the marketplace ex. how pizza hut will compete with papa. Johns or how walmart competes with target: cost leadership means becoming the low-cost leader in an industry.