Strategy Chapter 9 (3)

What business is it in?
the value chain and integration helps to answer the question
Value Chain is easy understand concepts. Integration has forward and backward, When a company operates in ares further down the value chain it is said be forwardly integrated toward the consumer. If a business operates in ares closer to the raw materials, then the company is said to be backwardly integrated. Integration also has vertical and horizontal. Company that participate at many levels of the value chain is called vertcially integrated, If its competitior at the same level in the value chaine, it is called horizontal integration,
Strategy is a big picture, thre levels of strategy Funcitonal strategy, Business strategy and corpate strategy.
Functional strategy is those operational methods and value adding activities that management chooses for its business.
Business strategy is those battle plans used ot fight the competition in the industry that a company currently participtes in. They are on a highter level than functional strategies, but there is obviously an overlap between bow a company opertes and how it cometes.
Corporte stategy looks at the whole gamut of business opportunities.