Corporate Strategy Essay Example | Topics and Well Written Essays - 2750 words

Corporate Strategy - Essay Example Strategy is the direction and scope of an organization over the long term, which achieves advantage for the organization through its configuration of resources within a changing environment and to fulfill stakeholders’ expectations. So strategic decisions are likely to be complex in nature and may be made in situation of uncertainty i.e. they may involve taking decisions with views of the future. It demands an integrated approach to managing the organization. Strategic decisions will very often involves change in organization, which may prove difficult because of heritage of resources and culture. They have to manage perhaps change relationship and network outside of the organization. So strategic decision-making requires special qualities of skills and knowledge. i) Corporate level strategy is concerned with the over all-purpose and scope of an organization. This could include issues of geographical coverage, diversity of products/services or business units and how resources are to be allocated between different parts of the organization. ii) Business unit strategy is about how to compete successfully in particular markets. The concerns are therefore about how advantage over competitors can be achieved; what new opportunities can be identified or created in the markets; which products or services should be developed in which markets; and the extent to which these meet customer needs in such a way as to achieve the objectives of the organization perhaps long term profitability or market share growth. So, whereas corporate strategy involves decisions about the organization as a whole, strategic decisions here need to be related to a strategic business unit (SBU). iii) Operational strategies is at the operating end of an organization, which are concerned with how the component parts of an organization deliver effectively the corporate and business level strategies in terms of resources, processes and people. Strategic management is the management of the