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A multi-business firm's overarching plan is referred to as corporate strategy. It's not the same as a company plan. It is up to the individual enterprises in the corporate "family" to figure out how to create and maintain a competitive advantage. The role of the corporate "parent" is referred to as corporate strategy, and it entails addressing two unique questions: 1) What types of firms will we have in our portfolio? 2) How would Corporate (i.e., the Corporate office) bring value to individual businesses?
The first of these questions is usually clear, involving concerns such as the volume and breadth of our company and the level of diversification we desire. The second question is usually the most challenging. It entails not just harnessing the synergies across the portfolio's companies but also controlling strategic risk. This training is designed to assist managers to understand corporate strategy and preparing them to develop and implement it.
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The phrases strategy and tactics are frequently misinterpreted, and they are even used interchangeably. Although both strategy and tactics assist you in achieving your objectives, they are fundamentally different, and recognising the distinctions is critical to a successful business plan. Strategies are concepts that you come up with in order to attain your goals. If you operate a chocolate firm, one of your goals may be to make it the world's largest and most lucrative chocolate company. Your plan may be to persuade your target audience that your chocolate is the greatest premium chocolate by obtaining endorsements from high-end organisations and individuals. Offering free samples at high-end boutiques, tucking them under the pillows of luxury hotel beds, or employing a celebrity to advertise your product are all possibilities.
Source - Andrews, Kenneth R. "The concept of corporate strategy." Resources, firms, and strategies: a reader in the resource-based perspective 52 (1997).
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The goal of corporate strategy is to extract higher long-term economic rents from a group of enterprises than they would generate on their own or if they were directly owned by a group of shareholders.
The most important three basics of corporate strategy are growth, stability, and renewal.
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