CORPORATE STRATEGIC PLANNING

WHY IS CORPORATE STRATEGY IMPORTANT?

 Ultimately, corporate strategy strives to create value, develop a unique marketing advantage, and seize
maximum market share. When clearly defined, a corporate strategy will work to establish the overall value of a
business, set strategic goals and motivate employees to achieve them.
WHAT IS STRATEGIC BUSINESS PLANNING?

 Strategic planning is a systematic process for developing an organization's direction. It also articulates the
objectives and actions required to achieve that future vision, and outlines metrics for measuring success.
TYPES OF CORPORATE LEVEL STRATEGY

 Stability Strategy is a corporate strategy where a company concentrates on maintaining its current market
position. A company that adopts such an approach focuses on its existing product and market.
 An expansion strategy is synonymous with a growth strategy. A firm seeks to achieve faster growth, compete,
achieve higher profits, grow a brand, capitalize on economies of scale, have greater impact, or occupy a larger
market share.
 A retrenchment strategy is the process of aggressively cutting costs in ways that have impact to your
operations and revenue. This is usually done in the context of a turnaround whereby management take drastic
steps to prevent an organization from failing.
 The Combination Strategy means making the use of other grand strategies (stability, expansion or
retrenchment) simultaneously.
WHAT IS THE DIFFERENCE BETWEEN CORPORATE STRATEGY
AND BUSINESS STRATEGY?

 Business strategy addresses how we should compete, while Corporate strategy is concerned with in which
businesses we should compete. Specifically, business strategy. refers to the ways in which a firm plans to achieve
its objectives within a particular business
DEFINITIONS

 Adaptive leadership - An adaptive manager recognizes those various skills and mobilizes, motivates, organizes,
orients, and focuses their team's attention to what is important. The organization is then transitioned in that
direction.
 Core competencies - are the resources and capabilities that comprise the strategic advantages of a business. A
modern management theory argues that a business must define, cultivate, and exploit its core competencies in
order to succeed against the competition.
 Organizational Alignment - is the process of creating unity between the company's ultimate vision of success and
the way leaders and individual contributors drive business results. This business strategy nurtures the importance
of teamwork and clarity in communication
 Participative leadership - is a style of leadership in which all members of the organization work together to make
decisions. Participative leadership is also known as democratic leadership, as everyone is encouraged to
participate.
 Strategic alignment - is a process that ensures an organization's structure, use of resources (and culture) support its
strategy. Strategic alignment contributes to improved performance by optimizing the operation of
processes/systems, and the activities of teams and departments.
 A strategic framework - is a type of structuring method that details how a project or initiative will help reach
important company objectives. From a marketing perspective, it can be used to outline specific marketing projects
or initiatives to make sure they're always in line with the overarching business plan.
 Strategic thinking - is a process that defines the manner in which people think about, assess, view, and create the
future for themselves and others.
 Transformational leadership - is a theory of leadership where a leader works with teams or followers beyond their
immediate self-interests to identify needed change, creating a vision to guide the change. 
MAIN COMPONENTS OF CORPORATE STRATEGY

 Visioning is a technique that is used to support a group of stakeholders in developing a shared vision of the future. It
involves asking the group of participants to appraise where they are now and where they can realistically expect to
be in the future.
 Objective setting - involves the development of an action plan designed in order to motivate and guide a person or
group toward a goal. Goals are more deliberate than desires and momentary intentions. Therefore, setting goals
means that a person has committed thought, emotion, and behavior towards attaining the goal.
 Resource allocation - is the process of assigning and managing assets in a manner that supports an organization's
strategic goals. Resource allocation includes managing tangible assets such as hardware to make the best use of
softer assets such as human capital.
 Prioritization - Establishing priorities is necessary in order to complete everything that needs to be done.
Prioritization is important because it with allow you to give your attention to tasks that are important and urgent so
that you can later focus on lower priority tasks.