Corporate strategy is a continuous on going process and extends company wide over a diversified company’s business.
Corporate strategy is a
continuous on going process and extends company wide over a diversified company’s
business. It is a boundary spanning planning activity considering all the
elements of the micro and macro environments of a firm. The following are the
key tasks of the process of developing and implementing a corporate strategy.
1. Exploring and determining the vision
of the company in the form of a vision statement.
2. Developing a mission statement of the company that should in-clude statement of
methodology for achieving the objectives, pur-poses, and the philosophy of the
organization adequately reflected in the vision statement.
3. Defining the company profile that
includes the internal analysis of culture, strengths and capabilities of an
4. Making external environmental analysis
to identify factors as threats, opportunities etc.
5. Finding out ways by which a
company profile can be matched with its environment to be
able to accomplish mission statement
6. Deciding on the most desirable courses
of actions for accomplish-ing the mission of an organization
7. Selecting a set of long-term
objectives and also the corresponding strategies to be adopted in line
with vision statement.
8. Evolving short-term and annual
objectives and defining the cor-responding strategies that would be
compatible with the mission and vision statement.
9. Implementing the chosen strategies in a planned way based on budgets and allocation
of resource, outlining the action programs and tasks.
10. Installation of a continuous
comparable review system to create a controlling mechanism and also
generate data for selecting future course of action The over all corporate strategy of a diversified
company is de-picted in Figure 1.2
Source : Thompson & Strickland (2003), Strategic Management, Tata
McGraw Hill, New Delhi.
The process of developing corporate strategy or the overall mana-gerial
plan for involves the following processes.
1. Making the moves to establish in
different businesses and achieve diversification.
2. Initiating actions to boost the
combined performance of the busi-nesses the firm has diversified into.
3. Pursuing ways to capture valuable
cross-business strategic fits and turn them into competitive advantage.
4. Establishing investment
priorities and steering corporate resources into the most attractive business
Tags : Strategic Management - Concept Of Corporate Strategy
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