ManagementMania AppMania EduMania JobMania BusinessPages


What is Corporate Strategy
Corporate strategy is the highest strategic plan of the organization, which defines the company goals and defines ways of the achievement within strategic management.

Corporate strategy is hierarchically the highest strategic plan of the organization, which defines the corporate overall goals and directions and the way in which will be achieved within strategic management activities.

It is a long-term, clearly defined vision of the direction of a company or organization. It helps determine the overall value of the organization, sets strategic goals and motivates workers to achieve them. It sets out a basic plan for what is to be achieved and when. This is done by using strategic goals and basic milestones. However, corporate strategy is also a continuous process that must be able to respond appropriately to changing conditions and surroundings - the market situation.

Corporate strategy must include and influence all aspects of the organization and its entire product portfolio.

What should a corporate strategy include and cover?

Clearly named vision and mission should be part of the strategy. Numerous analytical techniques are used to develop the strategy (see PESTLE, SWOT, VRIO). When implementing the strategy, for example the BSC is used in for the implementation.

Corporate strategy influences how a company creates value. This means that it must cover both the product portfolio and the assumptions - resources and organizational aspects.

  • The product portfoliois the basis for the whole company and therefore the strategy. The company needs to be clear about what it wants to deliver, who it wants to deliver, what are the key competitive advantages, pricing strategies and many other things. They are either part of a corporate strategy or are elaborated in detail in separate but subordinate strategic documents such as business strategies, marketing strategy and the like.

  • Company resources are necessary to deliver products and to propel processes. The corporate strategy must include at least a basic assessment of existing resources (eg using VRIO) and a plan of how new resources will be acquired so that the strategic goals can be achieved. Again, this description is either part of the corporate strategy as such or it is elaborated in detail in partial strategic documents (human resources strategy, financial strategy, IT strategy, etc.). Resources are a key limitation of the operation of companies. Most often lacking human resources. Sometimes companies face a lack of financial resources, sometimes they do not have sufficient technology, sometimes they miss a building permit to build a production hall. The most limiting resource is people - the lack of suitably qualified workers is the most common reason for not achieving the company’s business goals.

  • The organizational model then tells how to set up processes, organizational structure and overall operating principles to achieve strategic goals. It is necessary to set rules of operation, the policies, guidelines, organizational structure, management system and powers and responsibilities of people so that they effectively support to achieve strategic goals. In this respect, there is no optimal model - it is always necessary to use a management system, set processes and organization appropriately to the resources, culture and overall situation in the organization and the market. What works great in one company can cause problems for another company.

Thus, corporate strategy must not only define the product and business direction (business, market and financial goals) but also what a firm has to do to achieve these goals. What resources must invest to and how to organize them. What people’s skill profiles need, which competencies must be developed and how they must be used to develop the business.

Related terms and methods:

Related management field:

previous next
Did this article help you?
Rating:
Last update: 29.04.2019

Comments

Kaitlyn John 6 months

I think this is a complete article for a business popular diamond ring settings. Here they have shared Corporate Strategy that should be followed by every businessman. Here they are sharing much about the topic so deeply. A browser will get a clear idea of the topic.

Was this helpful?
Rating:
Atif Sharif 6 months

Thanks for sharing this Corporate strategy post for us. You can also visit my wireless hard drive blog here https://www.cdhpl.com/best-wireless-hard-drive/

Was this helpful?
Rating:
Jones Gilburt 5 months

This post reminds me my management days. Learned and revived a lot! Thanks for this amazing post on corporate strategy. Well, just found a gaming site called no survey no download verification where i found my best trick to use in my dragon city.

Was this helpful?
Rating:
ceckouuuu mecko 5 months

Top-of-the-line weblogs I've come across in a while.
bloons td battles online hack

Was this helpful?
Rating:
Was this helpful?
Rating:
Jen Logan 4 months

It's a nice article but there's some lack of info about the topic but you have to improve just like Cyberpunk 2077 Merch it's such an amazing dude's

Was this helpful?
Rating:
Jen Logan 4 months

Now I feel it's such an amazing post Michael Jackson Billie Jean Jacket keep up the good work....

Was this helpful?
Rating:
Jen Logan 3 months

This Corporate Strategy is awesome i love this article about corporate strategy Top Gun 2 Kindly make sure about some more clarification...

Was this helpful?
Rating:
Atif Sharif 3 months

Thanks for sharing
see my post here 404 wordpress error help

Was this helpful?
Rating:
kronos poker 2 months
Was this helpful?
Rating:
tepim zippiex 2 months

United Parcel Service, Inc. is a logistics and package delivery company, which provides supply chain management services.

upsers.com homepage

Was this helpful?
Rating:
Alex John 27 days

I have heard of so many different weight loss and diet pills, can anyone at all advise me on which are the strongest and most effective?
travel content writer

Was this helpful?
Rating:
Dan Klein 6 days

A great eye-opener
man and van Oxford

Was this helpful?
Rating:


To enter the discussion you must be signed in

Sign in


Related consulting companiesmore...
We can do it