Corporate Strategy
Corporate strategy refers to a company's overall scope and direction, as well as how various business processes collaborate to achieve certain goals. This is mostly for enterprises to make dynamic decisions regarding their diversity and resource allocation. It is always necessary to think about executing any corporate plan that would help the company. Businesses should be consistent in how they construct corporate strategies so that they produce more value than the sum of their business unit strategies (Becker & Freeman, 2006). The purpose of this study is to investigate effective methods for firms to create greater value through the application of corporate strategy. Consistency in the implementation of effective corporate strategy can be achieved if the companies can approach by spending more time developing it and reviewing strategies more frequently. Consequentially, this will create more value as compared to the amount contributed by the business unit strategies (Goold, Campbell & Alexander, 1994). This is because the company will be at a position where it becomes and much better at eliminating barriers to implementation. In the development of the corporate strategy, it is important to take into consideration the financial projections because they are vital for apportioning capital to businesses in the prevailing portfolio. This will add corporate value by innovatively reallocating resources and by altering its composition through mergers, acquisitions, and divestments.<\/p>
The Approach to the Strategy Process
The approach to the strategy process because effective business claim to have been due to the extent in which they integrate the key management processes. Therefore, the approach used makes a difference because integration of the key management processes will always result in the better strategy that will add value to the business. Lastly, the strategy implementation also plays a critical role in determining the effectiveness of a business. This is because it is not always successful as it may be faced by certain barriers that should be overcome so as to be effective. Therefore, companies must develop ways of dismantling barriers to implementation of corporate strategies. This implies that robust corporate strategy can be achieved if the managers obtain resilient links between corporate strategy and the strategic management processes, such as talent management and allocation of capital expenditures, and by developing effective ways of tackling the barriers to strategy implementation so as to ensure that their strategies transform into meaningful action<\/p>
References
Becker, W. M., & Freeman, V. M. (2006). Going from global trends to corporate strategy. McKinsey Quarterly, 3, 16.
Goold, M., Campbell, A., & Alexander, M. (1994). Corporate-level strategy: Creating value in the multibusiness company. New York: J. Wiley.
