Corporate strategic management refers to issues that are addressed in addresses the following basic questions: -In what businesses will the business compete? - The management of a company can seek to identify the special niche markets the company should concentrate its efforts on. -How can the company add value to its different subsidiaries?- The corporation’s management might consider streamlining its synergies. It can also gather market intelligence through the retail outlets that deal in its products. Market intelligence will provide information about the brands that are popular among consumers; some of which the company can decide to trade in. Corporate strategy is basically about finding ways to generate value when different lines of business under the same company pool their resources. -How can diversifying the corporate operations or launching into a new line of business assist the company in competing with other businesses? Diversification Strategy
Diversification strategies are employed to develop a company’s operations by adding products, markets, production stages or services to the existing business. The aim of corporate diversification is to permit the business to participate in lines of business that are not the same as those in their current operations. Concentric diversification is descriptive of when the new business is strategically connected to the present lines of business. Conglomerate diversification, on the other hand, is descriptive of the situation when there is no familiarity or link between the old and new lines of business. Development strategies usually result in a considerable increase in market share or sales objectives past previous levels of organizational performance (Gerami 2010). Many business establishments pursue different growth strategies on a regular basis. One of the main reasons for this is the fact that most business executives consider that greater investment will result in even bigger results. Increases in sales...
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