Osido, Alyanna Marie T.

CBET-02-807E

Business Policy
January 23, 2015

1. Explain each level of strategy and give a specific example of each.

ANSWER:
a. Corporate Strategy
- Corporate level strategy occupies the highest level of strategic decision-making
and covers actions dealing with the objective of the firm, acquisition and
allocation of resources and coordination of strategies of various SBUs for optimal
performance. Top management of the organization makes such decisions. The
nature of strategic decisions tends to be value-oriented, conceptual and less
concrete than decisions at the business or functional level.
EXAMPLE:
1) Coca-Cola Company focuses on beverage industry.
2) Wrigley Jr. Company focuses on chewing gums.
b. Business Strategy
- Business level strategy is applicable in those organizations, which have different
businesses-and each business is treated as strategic business unit (SBU). The
fundamental concept in SBU is to identify the discrete independent
product/market segments served by an organization. Since each product/market
segment has a distinct environment, a SBU is created for each such segment.
EXAMPLE:
1) Jollibee Corporation
c. Functional Strategy
- Functional strategy, as is suggested by the title, relates to a single functional
operation and the activities involved therein. Decisions at this level within the
organization are often described as tactical. Such decisions are guided and
constrained by some overall strategic considerations. Functional strategy deals
with relatively restricted plan providing objectives for specific function, allocation
of resources among different operations within that functional area and
coordination between them for optimal contribution to the achievement of the
SBU and corporate-level objectives. Below the functional-level strategy, there
may be operations level strategies as each function may be divided into several
sub functions. For example, marketing strategy, a functional strategy, can be
subdivided into promotion, sales, distribution, pricing strategies with each sub
function strategy contributing to functional strategy.

4.

Relate corporate, business, and functional strategies to one another, how do their
relationships to each other help in strategic focus for a company?

Osido, Alyanna Marie T.

CBET-02-807E

Business Policy
January 23, 2015

ANSWER:
Corporate level strategy fundamentally is concerned with selection of businesses in
which your company should compete and with development and coordination of that
portfolio of businesses. A strategic business unit may be any profit center that can be
planned independently from the other business units of your corporation. At the business
unit level, the strategic issues are about both practical coordination of operating units and
about developing and sustaining a competitive advantage for the products and services
that are produced. The functional level of your organization is the level of the operating
divisions and departments. The strategic issues at the functional level are related to
functional business processes and value chain. Functional level strategies in R&D,
operations, manufacturing, marketing, finance, and human resources involve the
development and coordination of resources through which business unit level strategies
can be executed effectively and efficiently.

6. How can a company make the three strategies more flexible in the following scenarios:

an emergency situation, and in an economic crisis?

ANSWER:
When the business case comes with challenges, organizations may be reluctant to
provide the essentialsthat is, total commitment by the CEO and the board (in the short
and long term), allocated resources and, ultimately, ownership by every employee. Also,
changes in management practices have resulted in organizations having little resilience
to cope with emergencies or emerging threats due to flatter organizations, reduced
headcounts, smaller financial savings and less ability to absorb the impact of disruptions.

10. Are we ready for e-shopping? Discuss the dos and donts of e-shopping in the

Philippines. Defend your answer whether you are for or against it.

ANSWER:
DOs
1. DO research before making a purchase.

Osido, Alyanna Marie T.

CBET-02-807E
-

Business Policy
January 23, 2015

Before you enter your credit card information and other details about yourself,
make sure that you made your homework and did research about the store you
are dealing with. This would help you identify safe and secure online business
from fake ones.

2. DO buy from websites with encryption.

-

Encryption ensures secure Internet purchases. It is a feature that automatically

codes your personal data after entering them. To identify websites with
encryption, look for a key icon or a closed lock displayed in the web browser, or
check if the web address or URL begins with https://.

3. DO pay by credit cards or online payment system.

-

In case there is a problem with your transaction, you can always call your credit
card company to explain what happened and they can eagerly investigate the
situation. Thus, fraudulent charges are easily disputable. Same goes with online
payment system.

4. It is important to be aware of an online stores rules and policies before making a

purchase. Good online businesses allow return of merchandise and will not share
personal information to anyone.

DONTS
1. DONT be a victim of fraud.
-

Be wary of scammers and spammers. If the deal is too good to be true or doesnt
sound real, it likely is. A good businessman wont flood your email or make a
hard sell of his product. Most spammers and scammers are often just looking to
make a quick buck. If you deal with such, theres a good chance that you wont
get what you paid for.

2. DONT use debit card

-

When you pay by credit card, you can dispute fraudulent charges and your credit
card company can void the transaction. However, when you use your debit card,
it is your own money that is at risk.

3. DONT trust websites unless it is certified for safety.

Osido, Alyanna Marie T.

CBET-02-807E
-

Business Policy
January 23, 2015

Before giving out any personal and financial information, make sure that the
website you are in is secured against hackers and online thieves. Websites with
the McAfee Secure trustmark have passed the daily identity theft and credit fraud
security tests, so you can be confident in making purchase on websites that
display such trustmark.

4. DONT forget to inspect your new purchase when it arrives.

-

In case there is a problem with the product, notify the seller as soon as possible.