Atlas Copco Group's Corporate Strategic Audit Essay

Atlas Copco Group's Corporate Strategic Audit - Essay Example Over the past years, Atlas Copco has focused all it recourses in strengthening its position in key market areas like India, China and Brazil. This determination of the company to hold strong of its market region has been the drive to its good performance. A flexible business model, as strong market position and the companies focus in innovation provides a perfect environment for the company to outperform its peers and capturing business opportunities. The stable cash flow of the company has enabled it to be in a position to distribute significant capital to its shareholders while at the same time simultaneously retaining the flexibility to act in its growth strategy. This information was not mentioned in the interview but additional research has been done to support the information. This information that follows was not mentioned in the interview but additional research has been done to support the information. Atlas Copco corporate strategy is to establish a strong business position in various industries and markets. The company also ensures the evaluation and monitoring of all business functional areas while making corporate strategy. The main strategy for Atlas Copco is to discover and expand in the new market. It is determined to capture markets that are unexploited over different demographics to enhance sale of the products. The company is focused in using both the vertical and horizontal integration. This is the reason why the cost of production is always low. Concentration strategy is also used by the company which is part of the growth strategy and all the two are directional strategy to improve the image of its brand. Atlas Copco’s is based on decentralized authority and responsibilities. The operation of Atlas Copco’s is comprised of 22 divisions and is structured in four business areas. Each operation unit is comprised of a business board which reflects the group operational structure. The company has put in