Business Model and Corporate Strategy of Textron

Business Model and Corporate Strategy of Textron


Textron Inc. is a multi industry company involved in various businesses including aircraft, finance and industrial businesses. The company major product portfolio includes aircraft and related products, industrial products and a variety of financial services. The company operates in United States with headquarter located in Providence, Rhode Island. Some of the global brand of the company includes Cessna Aircraft Company, Textron Systems, Bell Helicopter, Jacobsen, Kautex, E-Z-GO and Greenlee (Textron n.p).

Business Model of Textron

Business model can be defined as the strategies that are developed and implemented by organizations to enable them meet the specified objectives (Morris et al 732). The main aim of a business model is to enable a company to be productive and profitable.  An effective business model should consist of the major units of organizations and their respective functions. It should also include organizations revenues and expenses.

Textron has a diversified business model that consists of various networks of businesses across the world. The organization structure of the company consists of a number of subsidiaries that operates independently. The subsidiaries of the company offer diversified products and belong to different industries hence make the company to be able to reduce the risks associated with a single product line (Kaplan et al 210). Each of the businesses of the company is managed by separate executives. The executives of the subsidiary companies make independent decisions regarding daily operations of the business units.

The corporate office of Textron is responsible for the provision of the oversight direction and assistance to the various business entities. Corporate office of the company ensures that all the company’s business units apply sound practices of corporate governance in the management of the subsidiary businesses.

Corporate Strategy of Textron

Corporate strategy is the direction and scope of an organization that enables its daily business operations to work as an entity so as to achieve the specified objectives. It is concerned with the creation of value by companies in their daily operations. The corporate strategy considers the overall objective of an organization in achieving its objectives and gives direction to each of the business units in the organizations (Olson et al 52). To ensure an effective corporate management, the company should invest in competitive resources, develop business portfolios and design organization’s structure and systems.

Textron corporate system is composed of different corporate leadership for various business units. The company leadership structure consists of board of directors, executive officers, business unit presidents and corporate officers. The board of directors is the top management organ of the company that provides strategic and management oversight. It also gives the direction of the global business operation on behalf the stakeholders. The chairman of the company acts as the company chief executive and is responsible for the daily operations of the company business across all sectors.  The corporate managements also consist of executive vice presidents, unit presidents and corporate officers.



The Corporate Structure of Textron Company

The corporate structure of the company can be illustrated with the use of the diagram shown below.


Current Challenges

The main challenge faced by Textron is concerned with the maintenance of a workforce that is competitive, flexible and lean so as to ensure that it cope with the ever changing business strategy of the company. One of the major strengths of the company is manifested in its diversification strategy where the company maintains different businesses under one corporate management. The diversification strategy of the company requires employees to be flexible and innovative so as to ensure the growth and productivity of the company. This requires the company to engage in research and development as well as constant training and development of employees. Training, Research and development programs are expensive and this requires the company to spend huge amounts of money in such programs.



Works Cited

Kaplan, Robert S., and David P. Norton. The strategy focused organization: How balanced

scorecard companies thrive in the new business environment. Harvard Business Press, 2001.Print

Morris, Michael, Minet Schindehutte, and Jeffrey Allen. “The entrepreneur’s business model:

toward a unified perspective.” Journal of business research 58.6 (2005): 726-735. Print

Olson, Eric M., Stanley F. Slater, and G. Tomas M. Hult. “The performance implications of

fit among business strategy, marketing organization structure, and strategic behavior.” Journal of marketing (2005): 49-65.Print

Textron Home. “Textron Home, N.P., 2013, Web. 10 Nov. 2013.




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