Corporate Level Strategy
This article consists of all the elements that involve corporate strategy and focusing on the bigger picture. There are four strategic initiatives that corporations consider:
● Doing what is required and doing the ground work for different business types to establish the required amount of diversification. An essential part of the corporate strategy is to make the decisions of which type of business lines the company should be in and how many. This could change the amount of diversification the business is involved with by decreasing or increasing the scope which could involve adding or decreasing the business lines or changing the emphasis on each business line.
● Starting activities that will increase the overall functions of the different businesses which have been branched out into. This could involve having to consider each business line separately. Those businesses that are doing well to expand with aggressive growth actions, making sure that the main businesses are kept profitable, having sound turnaround actions for the weaker lines of business and selling off or closing down businesses that are not in line with the corporate structure. To achieve these it could include getting extra finance, a change in management, other resources or going into partnerships with a certain line of business.
● Endeavoring to find solutions with the different businesses and strategical fits and then converting it into a competitive advantage. To achieve this the factors to consider are sharing the relevant technology, the facilities that can be shared, and how the customers and channels of distribution can be incorporated.
Establish where there will be a greater return on investment, prioritize and use an increased amount of corporate resources in these business lines.
There are three main components that are useful to be taken into consideration when a strategy is formulated which are growth, functions, and structure.