Assignment-Strategic Mgmnt and Buisness Policy
MB0052
Ques-1-
CORPORATE STRATEGY is the direction an organization takes with the objective of achieving business success in the long term. Recent approaches have focused on the need for companies to adapt to and anticipate changes in the business environment, i.e. a flexible strategy. The development of a corporate strategy involves establishing the purpose and scope of the organization's activities and the nature of the business it is in, taking the environment in which it operates, its position in the marketplace, and the competition it faces into consideration; most times analyzed through a SWOT analysis.
Corporate strategy is often held by very large businesses and corporations. This strategy is ownership oriented (i.e., the chief benefactors of the strategy are the stake holders or share holders of the business). If the company is a corporation, the primary investors (most often forming a board of directors) dictate the driving needs of the investors and it is the job of the president or CEO to meet these needs. If the company is privately owned the owner acts as the primary stockholder. So corporate strategy in these different organisations will be different mainly because of organisational objectives and priorities and also nature of operations. For eg: Coco cola, Inc., has followed the growth strategy by acquisition. It has acquired local bottling units to emerge as the market leader.
Small businesses, for example, generally operate in a single market or a limited number of markets with a single product or a limited range of products. The nature and scope of operations are likely to be less of a strategic issue than in larger organizations. Not much of strategic planning may also be required or involved and, the company may be content with making and selling existing product(s) and generating some profit.
For large businesses or companies—whether in the private sector, public sector or multinationals—the situation is entirely different. Both the
Ques-1-
CORPORATE STRATEGY is the direction an organization takes with the objective of achieving business success in the long term. Recent approaches have focused on the need for companies to adapt to and anticipate changes in the business environment, i.e. a flexible strategy. The development of a corporate strategy involves establishing the purpose and scope of the organization's activities and the nature of the business it is in, taking the environment in which it operates, its position in the marketplace, and the competition it faces into consideration; most times analyzed through a SWOT analysis.
Corporate strategy is often held by very large businesses and corporations. This strategy is ownership oriented (i.e., the chief benefactors of the strategy are the stake holders or share holders of the business). If the company is a corporation, the primary investors (most often forming a board of directors) dictate the driving needs of the investors and it is the job of the president or CEO to meet these needs. If the company is privately owned the owner acts as the primary stockholder. So corporate strategy in these different organisations will be different mainly because of organisational objectives and priorities and also nature of operations. For eg: Coco cola, Inc., has followed the growth strategy by acquisition. It has acquired local bottling units to emerge as the market leader.
Small businesses, for example, generally operate in a single market or a limited number of markets with a single product or a limited range of products. The nature and scope of operations are likely to be less of a strategic issue than in larger organizations. Not much of strategic planning may also be required or involved and, the company may be content with making and selling existing product(s) and generating some profit.
For large businesses or companies—whether in the private sector, public sector or multinationals—the situation is entirely different. Both the