Preview

Corporate Strategy 1

Powerful Essays
Open Document
Open Document
2320 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
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,

You May Also Find These Documents Helpful

  • Good Essays

    Applied Concept Paper

    • 5805 Words
    • 24 Pages

    The purpose of this paper is to help me to fully understand and expand my knowledge of the concepts four in our textbook. By performing research about recent business world activities, I will be able to link the terms learned in the lecture in order to get the full picture. Although I chose terms that are found in both chapter 6 and chapter 7, most of my terms come from chapter 7, which talks about corporate strategy. Our textbook Strategic Management and Business Policy textbook by Thomas L. Wheelen and J. David Hunger is a great source of information for anyone interested in learning more about business. According to our textbook, the three key issues that corporate strategy deals with are:…

    • 5805 Words
    • 24 Pages
    Good Essays
  • Powerful Essays

    Strategy is a roadmap designed to route the direction of the organization towards achieving its goals. Through an understanding of the organization’s vision and mission and the matching of resources and skills to the environment, the company can formulate and implement strategic plans to achieve long-term sustainable competitive advantage, meet the needs of consumers and satisfy stakeholder’s expectations (Johnson, Scholes and Whittington 2004).…

    • 1718 Words
    • 7 Pages
    Powerful Essays
  • Powerful Essays

    Hershey Corporate Culture

    • 2435 Words
    • 10 Pages

    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".…

    • 2435 Words
    • 10 Pages
    Powerful Essays
  • Best Essays

    In order to survive in the competitive environment and preserve the competitive force, corporate strategy is the strategy used by organisation to discriminate the act domain and the resource distribution. It could be the highest level of strategy in a company. In the organization’s strategic process, prescriptive strategy and emergent strategy are particularly used. (Johnson, G., Scholes, K., Whittington, R., 2005)…

    • 1999 Words
    • 8 Pages
    Best Essays
  • Good Essays

    My Papers

    • 840 Words
    • 4 Pages

    * -Corporate strategy is the overall scope and direction of a corporation and the way in which its various business operations work together to achieve particular goals. 3 issues are the firm’s orientation towards growth, stability and retrenchment, (Directional Strategy), the industry or markets in which the firm competes (Portfolio Strategy), and the manner in which management coordinates activities transfer’s resources, and business units. (Parenting Strategy)…

    • 840 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Corporate Level Strategy directs the organization as a whole toward sustainable competitive advantage. The purpose of corporate strategy is to set direction and guide resource allocations for the entire enterprise.…

    • 999 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Corporate Strategy

    • 1653 Words
    • 7 Pages

    Define corporate-level strategy and discuss its importance to the diversified firm. Describe the advantages and disadvantages of single- and dominant- business strategies. Explain three primary reasons why firms move from singleand dominant-business strategies to more diversified strategies. Describe how related diversified firms create value by sharing or transferring core competencies.…

    • 1653 Words
    • 7 Pages
    Satisfactory Essays
  • Powerful Essays

    Nothing but Everything

    • 2642 Words
    • 11 Pages

    Strategic planning calls for action in three key areas: the first is managing a company's business as an investment portfolio. The second involves assessing each business business's strength by considering the market's growth rate and company's position and fit in that market. The third is establishing a strategy. For each business, the company must develop a game plan for achieving its long-run objectives.…

    • 2642 Words
    • 11 Pages
    Powerful Essays
  • Powerful Essays

    Target Corporation Final

    • 2502 Words
    • 24 Pages

    What, then, is a company’s corporate strategy? The most widespread view is that strategy drives the actions of an organization by improving the operations of the operating units and gives you an understanding…

    • 2502 Words
    • 24 Pages
    Powerful Essays
  • Good Essays

    Corporate Level Strategy

    • 607 Words
    • 3 Pages

    In recent years, more and more people concern about the health and they are order the healthy…

    • 607 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Strategy Formulation

    • 432 Words
    • 2 Pages

    Strategy formulation is vital to the well-being of a company or organization. There are two major types of strategy: (1) corporate strategy, in which companies decide which line or lines of business to engage in; and (2) business or competitive strategy, which sets the framework for achieving success in a particular business. While business strategy often receives more attention than corporate strategy, both forms of strategy involve planning, industry/market analysis, goal setting, commitment of resources, and monitoring.…

    • 432 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    2. Product scope, international scope, and vertical scope are part of corporate level strategy decisions.…

    • 3508 Words
    • 16 Pages
    Satisfactory Essays
  • Powerful Essays

    case anlysis on fdi

    • 4237 Words
    • 14 Pages

    To a certain extent, this view conflicts with the received wisdom of the strategic management literature. It is often claimed that a company’s corporate-level strategy sets the context for its business level strategy. Our position is that if a corporate level strategy is to succeed, the reverse should be the case. That is, the process of establishing a sustainable competitive advantage at the business level defines the set of appropriate corporate-level strategies.…

    • 4237 Words
    • 14 Pages
    Powerful Essays
  • Good Essays

    outsourcing in hrm

    • 1408 Words
    • 5 Pages

    The corporate strategy guides organization’s positioning in terms of responsiveness, cost leadership and product differentiation. In broad terms, corporate strategy is concerned with the broad decision making like choosing the business network, capacity utilization etc.…

    • 1408 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    "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 fulfill stakeholder expectations".…

    • 4021 Words
    • 17 Pages
    Powerful Essays

Related Topics