List & discuss different kinds of the Corporate Strategy. The corporate strategy is all about enabling the organization to attain and sustain best performance just by overcoming the business challenges, knowing the industry trends & linking the tangible actions to the clear corporation aim. No matter whether it is pursuing the growth, delivering the innovation, driving the efficiencies and improving the profitability, organizations require strategies they will deliver and implement to drive the successful outcomes. Three main kinds of the corporate strategies are stability, growth, as well as renewal.
Stability – The stability strategy is the corporate strategy where the organization continues doing what it’s currently doing. The examples of the strategy comprise of continuing to serve similar clients just by offering similar product and service, maintaining the market share or sustaining organization’s present business operations. Organization doesn’t grow, however doesn’t fall behind.
Growth – The growth strategy is actually when the organization expands its number of markets that are served and products offered, through the current businesses and through the new businesses. Due to the growth strategy, the organization might increase its revenues, the number of employees and market share. The organizations grow just by using the concentration, horizontal integration, vertical integration, and diversification.
Renewal – When the organization is completely in trouble, then something has to be done. The managers have to develop the strategies, named renewal strategies, which address the declining performance. Two main kinds of the renewal strategies are turnaround and retrenchment strategies. In order, to create the sustainable and long-term success, organisation should first and fundamentally know or relate to the clients. It’s an ongoing encouragement of the understanding that is based on not any specific competitors or temporal objectives that should be at a heart of real strategy. It’s that all objectives must flow naturally. For this reason, lots of companies are now turning to the performance management for improving the budget and to let them to link the corporate strategy to the budget.
Points to think about
1. Take little time to know different requirements of the internal customers, or think very carefully how you will address them. What is an optimum operating model?
2. Think how you will objectively measure value that function delivers. Try and put the broad and clear set of the metrics in right place that everybody will work towards.
3. Make time to secure buy in that you want from different stakeholders. Articulate how they may see benefits of change or bring it with you on your journey.
Being a step removed from cut & thrust of the competition for the customers doesn’t free the support functions from a need for business strategy. The clear & effective strategic direction will benefit the functions like other, driving organisation’s performance & improving alignment as well as morale of the people. Thus put aside glamour of the corporate strategy for one minute, and do not forget importance of the ambitious and clear strategy for Finance, IT or HR function.
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