1 What is corporate strategy ?
Action plan for conducting business operations
Present situation analysis (swot)
Where to go in the future? Which directions do I take?
Strategy: based on present situation analysis and intended future
direction, the action plan is drafted
1.1 Strategy characteristics
Long term action plans
Unique to each company (based on a unique set of
competencies, resources and capabilities)
Should provide a sustainable competitive edge
over rivals
Strategies evolve overtime
1.1.1 Company strategies – why are they
unique
Unique resources, competencies and
capabilities
Competitive advantage can only be the
result of distinct strategies
Discussion topic: can start up companies
adopt a mini-version of an established
company’s strategy?
1.2 Sustainable competitive advantage
Competitive advantage results from meeting
customer needs more efficiently (similar
products/services at lower cost; more efficiently
(providing product and service features that are
valued more by customers) – refer generic
strategies
Providing lasting reasons for purchase creates
sustainability
1.3 Why strategies evolve?
Market situation evolves: new competitors,
industry trends, market trends
Technological advancements, new ideas
Changing customer preferences and needs
1.4 Strategic actions
Actions to gain market share by enhancing
features, achieving lower costs, focus on specific
segments (generic strategies, value chain
analysis, integration/outsourcing strategies etc.)
1
Summary International Corporate Management
, Actions related to entering new businesses or
closing some to better focus on core business
(diversification/consolidation)
Entering new markets/quitting non-profitable ones
Strengthening marker position and
competitiveness through merger and acquisitions
1.5 Business model
Shows how the money is made in a specific
business.
Compares revenue streams to cost structure to
determine if the business idea and related
strategies are viable.
1.6 Strategy VS business model
Strategy deals with a company competitive
initiatives and business approaches
Whereas
The business model concerns whether revenues
and costs flowing from the strategy demonstrate a
business can be amply profitable and viable
1.7 Strategy test
Does it lead to sustainable competitive
advantage?
Whether it takes into account the competencies,
resources and whether fits well into the firms
situation
Does it improve firms performance (present and
future)
1.8 Strategic vision and mission
A strategic vision concerns a firm’s future
business path – “where are we going”
markets to be pursued
future
product/market/customer/technology focus
kind of company management is trying to
create
The mission statement of a firm focuses on its
present business purpose – “who we are and what
we do”
Current product and service offerings
Customer needs being served
Technological and business capabilities
1.9 Company objectives
Objectives convert vision into specific targets
Are yardsticks to track and evaluate performance
Should be quantifiable, measurable, time-bound
2
Summary International Corporate Management
, 1.10 Financial VS strategic objectives
Financial objectives are focused on improving
financial performance
Strategic objectives are aimed at building
competitiveness and future performance
1.11 Balanced scoreboard
It’s a performance metric that helps to measure
and provide feedback to assist in implementing
strategies and objectives
Presents a mixture of financial and non-financial
measures, each compared to a target value
1.12 Formulating strategy
External factor analysis
Internal factor analysis
Finding opportunities to do new things or seeking
to do things in new/improved ways to create value
Timely response to shifting market conditions
1.13 Strategy making hierarchy
1.14 Corporate level strategy
Allocation of resources across businesses
Diversification/consolidation
Building cross business synergies
Improve performance of individual businesses
3
Summary International Corporate Management
, Decided at top managerial level
1.15 Business level strategies
Improve performance of specific business
Build competitive competences and capabilities to
achieve competitive edge
Uniting strategic activities of functional areas
Applicable to companies operating multiple
businesses
1.16 Functional level strategies
Setting up financial level objectives
Planning for managing key activities in the
respective functional area
Formulating strategies in coordination with
another strategy hierarchy levels as well as other
1.17 Operating strategies
Strategies to manage key operating units
Add detail to business and functional level
strategies
1.18 Implementing strategy
Without proper execution/implementation, even
well-conceived strategies do not produce results
Strategy implementation involves allocating
resources, making effective policies, installing
suitable communication an information systems,
leadership and building and organizational culture
that supports strategy implementation
1.19 Evaluation and control
Strategies evolve due to shift in market
conditions, changes in external and internal
environment
Regular evaluation of performance to judge the
effectiveness of strategies should be carried out to
make desirable changes to strategies.
4
Summary International Corporate Management
Action plan for conducting business operations
Present situation analysis (swot)
Where to go in the future? Which directions do I take?
Strategy: based on present situation analysis and intended future
direction, the action plan is drafted
1.1 Strategy characteristics
Long term action plans
Unique to each company (based on a unique set of
competencies, resources and capabilities)
Should provide a sustainable competitive edge
over rivals
Strategies evolve overtime
1.1.1 Company strategies – why are they
unique
Unique resources, competencies and
capabilities
Competitive advantage can only be the
result of distinct strategies
Discussion topic: can start up companies
adopt a mini-version of an established
company’s strategy?
1.2 Sustainable competitive advantage
Competitive advantage results from meeting
customer needs more efficiently (similar
products/services at lower cost; more efficiently
(providing product and service features that are
valued more by customers) – refer generic
strategies
Providing lasting reasons for purchase creates
sustainability
1.3 Why strategies evolve?
Market situation evolves: new competitors,
industry trends, market trends
Technological advancements, new ideas
Changing customer preferences and needs
1.4 Strategic actions
Actions to gain market share by enhancing
features, achieving lower costs, focus on specific
segments (generic strategies, value chain
analysis, integration/outsourcing strategies etc.)
1
Summary International Corporate Management
, Actions related to entering new businesses or
closing some to better focus on core business
(diversification/consolidation)
Entering new markets/quitting non-profitable ones
Strengthening marker position and
competitiveness through merger and acquisitions
1.5 Business model
Shows how the money is made in a specific
business.
Compares revenue streams to cost structure to
determine if the business idea and related
strategies are viable.
1.6 Strategy VS business model
Strategy deals with a company competitive
initiatives and business approaches
Whereas
The business model concerns whether revenues
and costs flowing from the strategy demonstrate a
business can be amply profitable and viable
1.7 Strategy test
Does it lead to sustainable competitive
advantage?
Whether it takes into account the competencies,
resources and whether fits well into the firms
situation
Does it improve firms performance (present and
future)
1.8 Strategic vision and mission
A strategic vision concerns a firm’s future
business path – “where are we going”
markets to be pursued
future
product/market/customer/technology focus
kind of company management is trying to
create
The mission statement of a firm focuses on its
present business purpose – “who we are and what
we do”
Current product and service offerings
Customer needs being served
Technological and business capabilities
1.9 Company objectives
Objectives convert vision into specific targets
Are yardsticks to track and evaluate performance
Should be quantifiable, measurable, time-bound
2
Summary International Corporate Management
, 1.10 Financial VS strategic objectives
Financial objectives are focused on improving
financial performance
Strategic objectives are aimed at building
competitiveness and future performance
1.11 Balanced scoreboard
It’s a performance metric that helps to measure
and provide feedback to assist in implementing
strategies and objectives
Presents a mixture of financial and non-financial
measures, each compared to a target value
1.12 Formulating strategy
External factor analysis
Internal factor analysis
Finding opportunities to do new things or seeking
to do things in new/improved ways to create value
Timely response to shifting market conditions
1.13 Strategy making hierarchy
1.14 Corporate level strategy
Allocation of resources across businesses
Diversification/consolidation
Building cross business synergies
Improve performance of individual businesses
3
Summary International Corporate Management
, Decided at top managerial level
1.15 Business level strategies
Improve performance of specific business
Build competitive competences and capabilities to
achieve competitive edge
Uniting strategic activities of functional areas
Applicable to companies operating multiple
businesses
1.16 Functional level strategies
Setting up financial level objectives
Planning for managing key activities in the
respective functional area
Formulating strategies in coordination with
another strategy hierarchy levels as well as other
1.17 Operating strategies
Strategies to manage key operating units
Add detail to business and functional level
strategies
1.18 Implementing strategy
Without proper execution/implementation, even
well-conceived strategies do not produce results
Strategy implementation involves allocating
resources, making effective policies, installing
suitable communication an information systems,
leadership and building and organizational culture
that supports strategy implementation
1.19 Evaluation and control
Strategies evolve due to shift in market
conditions, changes in external and internal
environment
Regular evaluation of performance to judge the
effectiveness of strategies should be carried out to
make desirable changes to strategies.
4
Summary International Corporate Management
