What Should A Corporate Strategy Include and Cover?: Organization Goals Strategic Management
What Should A Corporate Strategy Include and Cover?: Organization Goals Strategic Management
What Should A Corporate Strategy Include and Cover?: Organization Goals Strategic Management
overall goals and directions and the way in which will be achieved within strategic management activities.
It is a long-term, clearly defined vision of the direction of a company or organization. It helps determine the
overall value of the organization, sets strategic goals and motivates workers to achieve them. It sets out a basic
plan for what is to be achieved and when. This is done by using strategic goals and basic milestones. However,
corporate strategy is also a continuous process that must be able to respond appropriately to changing
conditions and surroundings - the market situation.
Corporate strategy must include and influence all aspects of the organization and its entire product portfolio.
At the corporate level, top managers have two types of decisions to make when
formulating a strategy. First, they must develop a master plan also known as
“grand strategy” which is consistent with the overall direction for the
organization. Second, they must develop a “portfolio strategy” that will
determine the types of organization activities and allocation of resources to
these activities.
Grand Strategy:
A “grand strategy” is a comprehensive general strategy which provides the
basis for strategic direction that will accomplish the organization’s long- term
goals. Grand strategies include three types of strategies, namely growth,
stability and retrenchment.
Growth Strategies:
Growth means expansion of the operations of the company and addition of
new areas of operation. This would mean more sales, more revenues, more
employees and more of the market share.
This expansion can be achieved by introducing the existing product into new
markets or by differentiating the product or service and increasing the
consumer base in the existing market or new products can be developed to
diversify a company’s product line.
Growth strategies can be very risky and involve forecasting and analysis of
many factors that affect expansion such as availability of resources and
markets. Growth is not only necessary but also desirable since growth is an
indication of effective management and it attracts quality amployees as a
result. However, growth must be properly planned and controlled, otherwise
organizations can fail. This is evident from failure of Laker Airways and W.T.
Grant Company. Both these companies tried to expand without building the
necessary infra-structure and resources to handle such an expansion.
Answer:
The three main types of corporate strategies are growth, stability, and renewal.
a. Growth - A growth strategy is when an organization expands the number of markets served or
products offered, either through its current business(es) or through new business(es). Because of its
growth strategy, an organization may increase revenues, number of employees, or market share.
Organizations grow by using concentration, vertical integration, horizontal integration, or diversification.
Picture the place of work; determine the receptivity and understanding levels
of the receivers; be aware of social climate and customs, question the
information’s timeliness. Ask what, when and in which manner you would like
to be communicated with if you were in a similar environment and position.”
(6) Consultation:
It is generally desirable to consult others in planning communication. This will
provide additional insight and objectivity to the message. An important
advantage of consultation will be that those who have been taken into
confidence while planning communication will lend active support.
Even in an emergency one dare not overlook the situational, psychological and
technical aspect of timing. Moreover, it is also necessary that information
should be given in time as out-of-date information is as bad as or worse than
none at all.
(11) Listening:
A very important aspect of effective communication is that executives and
supervisors should be good listeners. It is dangerous to be inattentive or
indifferent when others are attempting to communicate. The ten
commandments of American Management Association state: “Listening is one
of the most important, most difficult and most neglected Skills M
communications.