Corporate Level Strategy
Corporate Level Strategy (Video 1)
Corporate Level Strategy describes the entire strategic scope of the organization. This is the panoramic view of the organization. It is the strategy by which an organization decides in which product or service markets to compete and in which geographical regions to operate. Normally the organizations, who have multiple businesses, use corporate level strategy for allocation and distribution of resources i.e. how cash, equipment, staffing, and other resources are distributed . These strategies are established at corporate level.
Corporate level strategy has three levels:
Directional Issue
Portfolio Issue
Parenting Issue
Corporate Level Strategy has four types.
Growth strategy
Stability strategy
Retrenchment Strategy
Combination of above three strategies.
These strategies are called grand strategies, basic strategies or generic strategies.
An organization is a group of people working together for business, political and social purposes. In a business organization every individual plays his role strategically to take the organization step forward and achieve its goal. In an organization top management decides upon the strategy led by the president or chairman of that organization.
In 2003, Thompson and Cats-Baril identified the 4 E’s of corporate strategy that an organization should take care of ;
Extend: It means bring something new in the business by innovation or increase the size of the business or enter into a new business.
Expand: This means an organization should add more products and services with the existing business.
Exit. This is an option organisaion should consider to get rid of those product lines, services and business which are no longer profitable or less profitable to operate.
Enhance: This option means an organization should consider to add more functions in existing product or enhance the existing product by giving it a new look.
For example. In Nike Inc. We can see the combination of all corporate
Corporate Level Strategy describes the entire strategic scope of the organization. This is the panoramic view of the organization. It is the strategy by which an organization decides in which product or service markets to compete and in which geographical regions to operate. Normally the organizations, who have multiple businesses, use corporate level strategy for allocation and distribution of resources i.e. how cash, equipment, staffing, and other resources are distributed . These strategies are established at corporate level.
Corporate level strategy has three levels:
Directional Issue
Portfolio Issue
Parenting Issue
Corporate Level Strategy has four types.
Growth strategy
Stability strategy
Retrenchment Strategy
Combination of above three strategies.
These strategies are called grand strategies, basic strategies or generic strategies.
An organization is a group of people working together for business, political and social purposes. In a business organization every individual plays his role strategically to take the organization step forward and achieve its goal. In an organization top management decides upon the strategy led by the president or chairman of that organization.
In 2003, Thompson and Cats-Baril identified the 4 E’s of corporate strategy that an organization should take care of ;
Extend: It means bring something new in the business by innovation or increase the size of the business or enter into a new business.
Expand: This means an organization should add more products and services with the existing business.
Exit. This is an option organisaion should consider to get rid of those product lines, services and business which are no longer profitable or less profitable to operate.
Enhance: This option means an organization should consider to add more functions in existing product or enhance the existing product by giving it a new look.
For example. In Nike Inc. We can see the combination of all corporate
References: Strategy Levels - organization, advantages, manager, definition, school, model, type, company, business. 2015. Strategy Levels - organization, advantages, manager, definition, school, model, type, company, business. [ONLINE] Available at: http://www.referenceforbusiness.com/management/Sc-Str/Strategy-Levels.html. [Accessed 27 December 2014]. Fundamentals of Strategic Management ' 2007 Ed. - N. Orcullo - Google Books. 2015. Fundamentals of Strategic Management ' 2007 Ed. - N. Orcullo - Google Books. [ONLINE] Available at: https://books.google.com.au/books?id=xr64aks8wCEC&pg. [Accessed 27 December 2014]. Asia Times Online :: South Asia news - Nike bounces back in Pakistan . 2015. Asia Times Online :: South Asia news - Nike bounces back in Pakistan . [ONLINE] Available at: http://www.atimes.com/atimes/South_Asia/IE31Df02.html. [Accessed 27 December 2014] SmartCompany - Officeworks reports $1.57 billion in sales: inside the record result. 2015. SmartCompany - Officeworks reports $1.57 billion in sales: inside the record result. [ONLINE] Available at: http://www.smartcompany.com.au/finance/43357-officeworks-reports-1-57-billion-in-sales-inside-the-record-result.html#. [Accessed 27 December 2014] What is corporate strategy? - Market Business News. 2015. What is corporate strategy? - Market Business News. [ONLINE] Available at: http://marketbusinessnews.com/corporate-strategy/4342. [Accessed 27 December 2014] 2.1.1 Overview - NIKE, Inc.. 2015. 2.1.1 Overview - NIKE, Inc.. [ONLINE] Available at: http://www.nikebiz.com/crreport/content/strategy/2-1-1-corporate-responsibility-strategy-overview.php?cat=cr-strategy. [Accessed 27 December 2014]. Asia Times Online :: South Asia news - Nike bounces back in Pakistan . 2015. Asia Times Online :: South Asia news - Nike bounces back in Pakistan . [ONLINE] Available at: http://www.atimes.com/atimes/South_Asia/IE31Df02.html. [Accessed 27 December 2014].