Explain the corporate strategy in different types of organization.
Ans. The three main types of corporate strategies are growth, stability, and renewal. a. Growth - A growth strategy is when an organization expands the number of markets served or products offered, either through its current business(es) or through new business(es). Because of its growth strategy, an organization may increase revenues, number of employees, or market share. Organizations grow by using concentration, vertical integration, horizontal integration, or diversification. b. Stability - A stability strategy is a corporate strategy in which an organization continues to do what it is currently doing. Examples of this strategy include continuing to serve the same clients by offering the same product or service, maintaining market share, and sustaining the organization's current business operations. The organization does not grow, but does not fall behind, either. c. Renewal - When an organization is in trouble, something needs to be done. Managers need to develop strategies, called renewal strategies, that address declining performance. The two main types of renewal strategies are retrenchment and turnaround strategies.
Q2. What is the role consultants play in the strategic planning and management process of a company? Is it an essential role?
Q3. What is strategic audit? Explain its relevance to corporate strategy and corporate governance. Ans. In our introduction to business strategy, we emphasized the role of the "business environment" in shaping strategic thinking and decision-making.The external environment in which a business operates can create opportunities which a business can exploit, as well as threats which could damage a business. However, to be in a position to exploit opportunities or respond to threats, a business needs to have the right resources and capabilities in place.An important part of business strategy is concerned with ensuring that these...
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