Corporate Strategy

Corporate Strategy

Corporate strategy is the overall managerial game plan for a diversified company. It extends company-wide. It concerns how a diversified company intends to establish business positions in different industries. In addition, corporate strategy is a continuous process that requires a constant effort to engage investors in trusting the company with their money, thereby increasing the company’s equity. It is a hierarchically highest strategic plan of the organization, which defines the global goals and ways of their achieving within strategic management.

Corporate Strategy is concerned with how companies, like Disney, create value across different businesses. It takes as given the RC lessons on competitive strategy and asks how the corporation can add value over and above that which a business unit creates by it. This requires the corporation to invest in a valuable, set of resources, craft the business portfolio, and design the organization structure, systems, and corporate function to share activities or transfer skills across businesses. Corporate strategies are always growth-oriented, seeking to retain a company’s existing customer base while attracting new customers.

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