You may be a key executive or a key manager who is responsible for making strategic decisions in your corporation/organisation. More importantly, you are now looking for some information about the different types of corporate level strategies that you can apply to help you in your strategic decision-making process.
This blog post is prepared to help you quickly and easily understand the different types of corporate level strategies that are used by many key executives and key managers, which you in turn may find useful.
What is a Corporate Level Strategy?
A corporate level strategy defines the future of your corporation/organisation as a whole. This strategy is concerned with the strategic decisions you have to make that in turn will affect your entire corporation/organisation. The strategy is applied to the following business units, departments, etc within your corporation/organisation:
- Financial performance.
- Mergers, or acquisitions.
- Human resource management.
- Allocation of resources.
How can a Corporate Level Strategy help you?
A corporate level strategy can help you in any number of strategic decision-making processes. These include when you are:
- Deciding, which product or services market your corporation/organisation should compete in:
- Deciding, whether you should include a new product or service;
- Deciding on setting up partnering arrangements with other entities; and
- Deciding, whether your corporation/organisation should compete head on with your competitors.
Types of Corporate Level Strategy
Here is a list of the types of corporate level strategy that you can employ in your corporation/organisation:
This type of strategy is used when a corporation/organisation seeks to edge out its competitors, with the purpose of gaining a market share.
The idea behind employing the value-creating strategy is when you are deciding to offer more products to more customers within your market, in an attempt to dominate all or part of the overall market share.
The idea behind employing the value-neutral method is when you are not so much concerned with allocating resources and manpower as you are with securing your corporation’s or organisation’s place within its market. In essence, the value-neutral strategy helps you shore up your corporation’s or organisation’s operations plan.
Your corporation or organisation will sometimes engage in value-reducing strategies, particularly when:
- Your stakeholders or customers perceive that your corporation or organisation is getting too big; or
- It is perceived that only your top-level executives will receive the most benefit.
When Deciding on a Corporate Level Strategy
While it is sometimes evident as to which type of corporate level strategy your corporation or organisation should employ.
What is less clear, is when the market is unsteady or your corporation/organisation cannot afford to waste the resources trying new products or services that may not be profitable.
With the above situations in mind, why not ask yourself a few strategy-level questions that are listed below. When you read the “answers” you will understand which strategy to employ.
Question #1- Does your corporation or organisation feel threatened?
Answer: If your corporation or organisation feels threatened, then the value-creating strategy is the right strategy for you to employ.
Question #2- Does your corporation or organisation need to tighten its resources and monitor its finances more closely?
Answer: If your answer is YES. Consider focusing your efforts on employing the value-neutral strategy.
Question #3- Are there only a few people in your corporation or organisation that will benefit from your corporation’s or organisation’s success?
Answer: If your answer is YES. Consider employing the value-reducing strategy.
In summary, many key executives and key managers make the mistake of not understanding, which types of corporate level strategy to apply:
Seeking More Information
It may be beneficial to employ the services of an expert corporate adviser that can facilitate and guide you through the process.
Someone from outside your corporation or organisation who can see things differently and who can give your independent and impartial advice.
If you require more information, please call our corporate Adviser today on 1300 4 SINGH, or simply click here to send your question.
DISCLAIMER: This blog post is of a general nature only and does not constitute professional advice. I strongly recommend that you seek your own professional legal and accounting advice in relation to your particular circumstances.