IntroductionCorporate level strategy refers to the specific activities that an organization undertakes so as to increase shareholder value and to be competitive in the market or industry (University of Arlington, 2008). The strategy is pursued by choosing and managing a range of businesses that compete in different industries or markets. The levels of diversification that a firm can pursue are;
Low-level strategy
Middle to high-level strategy
High level to very high-level strategies.

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Low Levels of Diversification
An organization that wants to undertake a low-level diversification employs either single or dominant corporate diversification strategies (University of Arlington, 2008). Single-business diversification strategy is where an organization gets more than ninety-five percent of its sales profits from its primary business venture (University of Arlington, 2008). A dominant business diversification strategy is where an organization gets from seventy percent to ninety-five percent of its revenue from only one business sector (University of Arlington, 2008).

Moderate and High Levels of Diversification
A business that makes more than thirty percent of its income from other sources apart from its primary business undertaking and whose businesses are linked to each other in some ways makes use of a related diversification strategy (University of Arlington, 2008). A related constrained diversification strategy is said to be in use when the connection between businesses are direct (University of Arlington, 2008). An example of a business that uses this strategy is Procter & Gamble (University of Arlington, 2008). In a case where a business shares its activities between businesses, it uses a related constrained strategy (University of Arlington, 2008). A firm such as Time Warner shares its activities and technological resources across its Internet, phone service, and television programming businesses (University of Arlington, 2008).

High to Very High-Level Strategy
High to Very High corporate strategy uses unrelated diversification (Small Enterprise Strategy Development Training, 2009). Unrelated diversification is founded on the idea that any new firm or business that can be purchased or received when it is in sound financial status and can yield high returns is fit for diversification (Small Enterprise Strategy Development Training, 2009). It is basically a financial technique that is implemented when the research shows that the unrelated diversification in a new sphere of business would yield proportionately higher returns as compared to the related diversification strategy which is based on the similarity of products, markets, or matching strategies (Small Enterprise Strategy Development Training, 2009).

For example, in a period of economic growth, many businesses go into the construction business even though their primary business activity is unrelated to construction. But a lack of knowledge and experience in the construction field can lead to devastating losses or other business pitfalls. At times, unrelated diversification is based on the experience and expertise that is available in human resources that can be effectively put to use in unrelated areas. For example, if the owner of a car manufacturing business is competent in the area of financial services, they can set up a manufacturing plant to increase business portfolio and activity.

Unrelated diversification can be achieved in three ways. First, it can use the extant basic know-how and abilities of the firm and expand current markets into new markets and develop new channels of production (Small Enterprise Strategy Development Training, 2009). Secondly, it can completely penetrate into new markets. These opportunities often come from the primary business of the organization. For example, a large-scale retail owner can start a manufacturing firm to provide its store and other stores with various goods at competitive prices. Thirdly, a firm can get new competencies so as to take advantage of upcoming market opportunities (Small Enterprise Strategy Development Training, 2009).

Reasons that firms choose to diversify operations
Firms choose to diversify to get market power by enhancing its general performance. This is also known as value-creation diversification (Slideshare, 2013). Diversification in firms also aids in the attainment of market power over competitors, usually by way of multiple market competition. Firms also diversify to respond to concerns of a business low performance, doubt about future revenue and other risks. Making optimal use of resources that a corporation has that would create opportunities for diversification is also another incentive for diversification. Lastly, diversification expands the business’ portfolio and minimize employment risk.