Corporate Strategy
A corporate strategy aims to create a unique and valuable position for an organisation, involving the definition of its priorities and a set of activities tailored to these priorities. The strategic positioning of any organisation involves performing different activities from its competitors or performing similar activities in different ways. A fit among the activities is essential not only for competitive advantage, but also for the sustainability of that advantage. Sustainability comes from the activity system as a whole, not from its isolated parts, and is the key to operational effectiveness.
Corporate strategy is the pattern of decisions in a company that determine and reveals its objectives, purposes, or goals, produces the principal policies and plans for achieving those goals, and defines the range of business the company is to pursue, the kind of economic and human organization it is or intends to be, and the nature of the economic and noneconomic contribution it intends to make to its shareholders, colaborators, customers, and communities. In an organisation of any size or diversity, "corporate strategy" usually applies to the whole enterprise, while "business strategy" less comprehensive, and defines the choice of product or service and market of individual business within the firm. Business strategy, that is, the determination of how a company with compete in a given business and position itself among its competitors. Corporate strategy defines the business in which a company will compete, preferably in a way that focuses resources to convert distinctive competence into competitive advantage. Both are outcomes of a continuous process of strategic management.
Corporate strategy is an organisation process, in many ways inseparable from the structure, behaviour, and culture of the company in which it takes place. We may abstract from the process two important aspects. The first of these we may call formulation, the second implementation.
Strategy development and implementation is a process in which different employee groups should be involved. Corporate strategies and operational learning and development processes stand in close interaction. The aim of corporate strategy is to give suitable orientation to all sectors, define framework conditions for medium-term determination of marketing, development and sales activities and to enable the planning of all necessary resources for the implementation of these activities.
Mission statements and visions are central to company development. They show the framework for alteration measures.
This section contains further information about:
- Determination of further training needs, based on the corporate strategy
- Strategy development and personnel planning
- Checklists on corporate strategy
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