WHAT IS CORPORATE STRATEGY?
Although strategy has different definitions by various authors, to understand Corporate Strategy we begin by defining strategy. "Strategy is the direction and scope of an organization over the long-term: which achieves advantage for the organization through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfil stakeholder expectations” (Johnson, Scholes & Whittington, 2008). From the definition given by Johnson, Scholes & Whittington, 3 critical points are highlighted in strategy, THE FUTURE, CONFIGURATION of the Organization and COMPETITIVE ADVANTAGE. Thus, Strategy is clarifying where the business is aiming for in the long-term, how the business collates its financials, employees, technical competence. It is also identifying the areas in which the business is looking to compete as the Organization realizes that they cannot do everything and be everything. Strategy in itself has 3 contents with Corporate Strategy, Business and Functional level (De Wit & Meyer, 2004). Corporate strategy is seen as the process by which members of the organization envision the future and develop the necessary corporate procedures and operations to achieve the future. http://www.thecqi.org/Knowledge-Hub/Knowledge-portal/Corporate-strategy/Elements-of-corporate-strategy/
Goodstein, Timothy& Preiffier ( 1993, p.23), stated that the essence of corporate strategy at this level is in the activities it puts together for the Organization as a whole. Corporate Strategy asks the question What are the specific actions and answers how the specific actions are integrated to achieve the long term plan of the organization is the core of the corporate strategy. It begins with a definition of the markets and the businesses in which an organization chooses to operate, whilst business strategy defines the basis on which it will compete....
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