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Question 3 (a) Define corporate strategy and business strategy, and explain how they differ in the context of a diversified company. Definition - Corporate Strategy ~ top management (have power in decision making), overall scope & direction, selection of the market / industry to complete in, resource allocation, ~ focus: managing portfolio in business, long-term growth & profitability - Business Strategy ~ Department / business unit ~ focus: cost leadership, competitive advantages, attract customers / achieve market shares - Differences ~ Difference in Diversified Company ~ Corporate Strategy (merger, acquisition, which market should operate in) ~ Business Strategy (Specific business unit industry ~ 7 types of business unit, example: Great Eastern), adaptation in technology, differentiate themselves with competitors) (b) Define cost leadership and differentiation strategies, and explain how these strategies can impact a firm's value chain activities and interactions with key stakeholders. Define cost leadership ~ cost efficiencies / economies scales, lower prices compare to the competitors value chain influnce ~ Inbound Logistic, Operation marketing scales (cost- effective marketing strategy) stakeholders interactions ~ how to build strong relationship with suppliers * Reduce the cost * Offering competitives prices Differentiation: strategy ~ offering unique products / services ~ focusing in innovation, quality & customer service value chain influence ~ Product Development research & Development ~ marketing & sales premium branding (loyalty / product uniqueness) ~ customer service how they improve customer services Qualities Stakeholders interaction ~ engaging customers / suppliers collaborations \\_/; maintaining premium brand image