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Corporate Strategy : Corporate level strategy is the top management plan to direct and

run the
enterprise as a whole. It represents the pattern of industrial actions and goal underlying the
organisations
strategic interest in different business, divisions, product lines, customer groups,
technologies etc.
Corporate strategy emphasises upon the fact that how one should manage the scope of the
various
activities and how the resources should be allocated over the different activities.
The highest level of strategic management involves establishing the corporate-level
strategies.
Corporate-level strategies are concerned with defining how the business will remain
sustainable in the
long term. They are focused on maximising long term profitability and business growth.
Corporate-level
strategies allow you to focus your organisations investment on areas of the business that
will help you
to achieve your long term goals and objectives.
Corporate level strategy fundamentally is concerned with the selection of businesses in
which the
company should compete and with the development and coordination of that portfolio of
businesses.
Corporate level strategy is concerned with:
Reach - defining the issues that are corporate responsibilities; these might include
identifying the
overall goals of the corporation, the types of businesses in which the corporation should be
involved,
and the way in which businesses will be integrated and managed.
Competitive Contact - defining where in the corporation competition is to be localized. Take
the case
of insurance: In the mid-1990s, Aetna as a corporation was clearly identified with its
commercial and
property casualty insurance products. The conglomerate Textron was not. For Textron,
competition
in the insurance markets took place specifically at the business unit level, through its
subsidiary, Paul
Revere. (Textron divested itself of The Paul Revere Corporation in 1997.)
Managing Activities and Business Interrelationships - Corporate strategy seeks to develop
synergies
by sharing and coordinating staff and other resources across business units, investing
financial
resources across business units, and using business units to complement other corporate
business
activities. Igor Ansoff introduced the concept of synergy to corporate strategy.
Management Practices - Corporations decide how business units are to be governed:
through
direct corporate intervention (centralization) or through more or less autonomous
government
(decentralization) that relies on persuasion and rewards.
Corporations are responsible for creating value through their businesses. They do so by
managing
their portfolio of businesses, ensuring that the businesses are successful over the long-term,
developing
business units, and sometimes ensuring that each business is compatible with others in the
portfolio.
2. Business Level Strategy : A business strategy is a report that shows the plans of the
entire business. It
is a plan that is often used so that they can attract financing from big investors as well as
creditors. This
is a plan designed to give information regarding a new venture so that they can convince
financial
backers to invest in the said business. It describes the market opportunities that the
business intends to
develop, the process on how they are going to do it and the resources that are required to
make it
possible.
Business strategy is less a function of grandiose predictions than it is a result of being
able to respond
rapidly to real changes as they occur. Thats why strategy has to be dynamic and
anticipatory. - Jack
Welch.
The definition of business strategy is a long term plan of action designed to achieve a
particular goal
or set of goals or objectives.
Strategy is managements game plan for strengthening the performance of the enterprise. It
states
how business should be conducted to achieve the desired goals. Without a strategy
management has
no roadmap to guide them.
Creating a business strategy is a core management function. It must be said that having a
good strategy
and executing the strategy well, does not guarantee success. Organisations can face
unforeseen
circumstances and adverse conditions though no fault of their own.