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Corporate Strategy

Corporate strategy is a long-term plan designed to gain a competitive advantage and deliver value to customers and stakeholders. It can take four forms: growth strategies which aim for significant business expansion; stability strategies which focus on optimizing existing operations; retrenchment strategies which change direction during difficulties; and re-invention strategies which transform industries using new technologies. While every strategy is unique, categorizing them provides a framework for strategic decision-making to guide an enterprise over time in a changing business environment.

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Ella Mae Seña
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73 views

Corporate Strategy

Corporate strategy is a long-term plan designed to gain a competitive advantage and deliver value to customers and stakeholders. It can take four forms: growth strategies which aim for significant business expansion; stability strategies which focus on optimizing existing operations; retrenchment strategies which change direction during difficulties; and re-invention strategies which transform industries using new technologies. While every strategy is unique, categorizing them provides a framework for strategic decision-making to guide an enterprise over time in a changing business environment.

Uploaded by

Ella Mae Seña
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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CORPORATE

STRATEGY
P R E S E N T A T I O N
Corporate strategy
Corporate strategy is a unique
plan or framework that is long-
term in nature, designed with
an objective to gain a
competitive advantage over
other market participants while
delivering both on
customer/client and
stakeholder promises (i.e.
shareholder value).
Though no two strategies are ever
Different types of

the same, corporate strategy can


be classified into four different corporate strategy
groups:
• Growth strategy
• Stability strategy GROWTH STRAT
• Retrenchment strategy, and
• Re-invention strategy Growth strategies aim to
achieve considerable
business growth in the
areas of revenue, market
share, penetration, etc.
Though no two strategies are ever
Different types of

the same, corporate strategy can


be classified into four different corporate strategy
groups:
• Growth strategy
• Stability strategy RETRENTCHMENT STRAT.
• Retrenchment strategy, and
• Re-invention strategy Stability strategies do not have
growth and new business
development in their focus but rather
are geared towards getting “more”
out of the existing business (i.e.
profitability-driven-strategy) or
“stay-as-it-is” (i.e. Status-quo
strategy) because the current
situation already works well for the
organization.
Though no two strategies are ever
Different types of

the same, corporate strategy can


be classified into four different corporate strategy
groups:
• Growth strategy
• Stability strategy STABILITY STRAT.
• Retrenchment strategy, and
• Re-invention strategy This set of strategies is almost the
opposite of status-quo or growth
strategies. It is a defensive strategy
where the main objective is to
change the negative trajectory and
improve the company’s position
either through aggressive changes
or “cutting off” the parts that pull it
down.
Though no two strategies are ever
Different types of

the same, corporate strategy can


be classified into four different corporate strategy
groups:
• Growth strategy
• Stability strategy RE-INVENTION STRATEGIES
• Retrenchment strategy, and
• Re-invention strategy Re-invention strategies often include
taking the existing
industries/businesses which have
not changed for decades and re-
inventing them, often with the
support of new technologies. Here
one can distinguish between
evolutionary strategies and
revolutionary strategies.
Why does it matter?

While still a relatively young discipline,


corporate strategy has made incredible
strides in the business world over the past
40 years. Concerned with the overall
purpose and scope of the business to
meet stakeholder expectations, corporate
strategy is heavily influenced by investors
in the business and acts to guide strategic
decision-making throughout the
enterprise at all levels.
To succeed, a good strategy needs both a
solid foundation and the ability to evolve
and change in real-time. Business is not
static, corporate strategy shouldn’t be
either.

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