Corporate Strategy 1
Corporate strategy
Strategy is defined as 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 fulfill stakeholder expectations. Johnson and Scholes (1982). Strategy can be used to describe an approach, stance, or long term. Strategies exist at several levels in any organization - ranging from the overall business (or group of businesses) through to individuals working in it. There are three levels of corporate strategies namely corporate strategy, business strategy and operational strategy.
Corporate Strategy is concerned with the overall purpose and scope of the business to meet stakeholder expectations. This is a crucial level since it is heavily influenced by investors in the business and acts to guide strategic decision-making throughout the business. Corporate strategy is often stated explicitly in a "mission statement". Issues concerning the introduction of new products or expansion into new markets or segments are all a part of this strategic level. Assessing the value of a business unit in the overall portfolio of activities is also a corporate level decision alongside optimal resource allocation for units.
Corporate-level strategies address the entire strategic scope of the enterprise. This is the big picture view of the organization and includes deciding in which product or service markets to compete and in which geographic regions to operate. For multi-business firms, the resource allocation process, how cash, staffing, equipment and other resources are distributed, is typically established at the corporate level. In addition, because market definition is the domain of corporate-level strategists, the responsibility for diversification, or the addition of new products or services to the existing product/service line-up, also falls within the realm of corporate-level strategy. Similarly,
Strategy is defined as 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 fulfill stakeholder expectations. Johnson and Scholes (1982). Strategy can be used to describe an approach, stance, or long term. Strategies exist at several levels in any organization - ranging from the overall business (or group of businesses) through to individuals working in it. There are three levels of corporate strategies namely corporate strategy, business strategy and operational strategy.
Corporate Strategy is concerned with the overall purpose and scope of the business to meet stakeholder expectations. This is a crucial level since it is heavily influenced by investors in the business and acts to guide strategic decision-making throughout the business. Corporate strategy is often stated explicitly in a "mission statement". Issues concerning the introduction of new products or expansion into new markets or segments are all a part of this strategic level. Assessing the value of a business unit in the overall portfolio of activities is also a corporate level decision alongside optimal resource allocation for units.
Corporate-level strategies address the entire strategic scope of the enterprise. This is the big picture view of the organization and includes deciding in which product or service markets to compete and in which geographic regions to operate. For multi-business firms, the resource allocation process, how cash, staffing, equipment and other resources are distributed, is typically established at the corporate level. In addition, because market definition is the domain of corporate-level strategists, the responsibility for diversification, or the addition of new products or services to the existing product/service line-up, also falls within the realm of corporate-level strategy. Similarly,