Over the years, corporate strategy has made incredible strides in the business world. In other to meet up the general purpose and scope of business with stakeholder expectations, companies choose to develop corporate strategies. In this article, we’re going to discuss corporate strategy, levels, components, jobs and examples.
What is a corporate strategy?
Corporate strategy is a long-term unique plan, designed to gain a competitive advantage over other market participants. It is a continuous process that requires a consistent effort to retain investors in trusting the company with their funds. In a nutshell, Corporate strategy determines a company’s vision and tactics to defeat its opposition.
An effective corporate strategy is established upon honest self-evaluation. Thus this is done by asking relevant questions that will bring growth to your business. They include:
- What is the present status of your company?
- Where will your company be in years to come.
- How will the company get there
Components of Corporate Strategy
However, below are components of corporate strategy that will definitely help to achieve company’s goals.
#1. Visioning
Visioning for a company’s future is an important element of corporate leadership. It is a tool that brings stakeholders mutually to develop a shared vision of the future. In addition, It also answers the question: “What will your company be in years to come.
#2. Objective Setting
Objectives help in mapping out what a business is trying to achieve. In fact, they are mostly based on organisational strategy. Therefore, Setting strategic objectives allow a company to determine its development. Hence, ensure you clearly communicate your objectives to other personnel
#3. Resource Allocation
This involves planning, managing and assigning resources in a form that helps to reach a company’s strategic goals. Apart from making an attempt to increase the value of the firm, leaders must plan how to allocate these resources to the various business units.
Levels of Corporate Strategy
As earlier mentioned, Corporate strategy is the master plan that directs the company towards success. The more appropriate corporate-level strategy is, the more the chances for the success of your organization.
#1. Business-level strategy
The business-level strategy provides a company with a competitive advantage. Little wonder why the Houston Chronicle explains that ”a business level strategy is chosen based on the strengths and weaknesses of the company’s products or services and on how it wants to be perceived by its customers.” While this strategy is what most people are accustomed to. It answers the question “How do we run the race?”, “How do we achieve (a sustainable) competitive advantage over competitors?”.Therefore, as a result, it is pertinent to have a good knowledge of a business and its external environment.
#2. Functional-level strategy
This corporate strategy deals with the question “How do we support the business-level strategy within working departments. In addition, these strategies are aimed at improving the effectiveness of a company’s operations within departments. For example, if this company is offering products for children, then the marketing department should target this audience accurately through their marketing campaigns by choosing the right media channels.
Corporate Strategy Jobs
Corporate Strategy jobs are available in different companies and platforms. However, to avail yourself of a corporate job strategy, you need a bachelor’s or master’s degree in marketing, business, communications, or a relevant field. Although, some employers prefer applicants with experience in branding, marketing, or in a leadership position. Meanwhile, individuals seeking a corporate strategy jobs seeker can work in the position listed below.
- Strategy & Operations Analyst
- Operations Associate, Business Manager, Production Supervisor and more.
- Head Of Marketing
- Head Corporate Planning/Strategy
- Content Strategy & Business Development
What are corporate strategy and an illustration?
The corporate strategy of a business may emphasize sales, expansion, or leadership. For instance, a company may develop a corporate strategy in order to increase its sales to new markets or consumers. It may also leverage company strategy to determine resource prioritization. 11 Aug 2021
What are the three fundamental business strategies?
Typically, corporate leaders follow one of the three corporate-level strategies: stability strategies, growth strategies, or retrenchment strategies.
What is a corporation’s corporate strategy?
Corporate strategy is the level of strategy that focuses on the entire organization, where choices on the company’s general growth and direction are decided. Corporate strategies are likely the most important and comprehensive level of strategy within an organization’s strategy. 7 May 2022
What are the four business strategies?
Visioning, objective-setting, resource allocation, and prioritization are the four most frequently regarded key components of corporate strategy.
Read Also: Corporate Level Strategy- All you need to know (+ examples, Definition and Types)
Corporate Strategy Examples
Firstly, for successful corporate strategy examples, companies and small business owners can Consider these examples of corporate strategies when creating a strategic plan.
#1. Growth
Growth strategy scales revenues to the next level of profits. However, it requires opening new markets, finding new demographics to penetrate as well as rolling out new competitive products. Therefore, all you’ve got to is consider the below growth approaches for a corporate strategy.
Cost leadership
This occurs when a company tries to beat competitors by offering a product for a lower price. For example, Ugo and McDonalds are global brands famed for their competitive pricing. However, it is difficult to maintain this approach due to changing market conditions, although there is a need to re-evaluate pricing when due.
Product differentiation
This is what makes your product or service stand out to your target audience. It’s how you differentiate what you sell from what your competitors sell. An example is Lush and Apple have been successful in differentiating their products in competitive markets. While the cosmetic retailer Lush was famous for its ethical products and corporate social responsibility yet Apple won market share with its smooth designs.
Horizontal integration
This is a corporate strategy that a company modifies when trying to offer its products or services in different markets. Moreover, this action is done to strengthen its position in the industry. Thus it can also be done by either merging with or acquiring another company that offers the same services.
Therefore, procuring businesses that complement your own is the best bet way to extend into new markets as well as capturing an increased market share. For example, Amidst the takeover of Instagram in 2012 for about $1.5 billion, Facebook fastened its place as the market-leading social media platform.
Vertical integration
This approach allows a company to take full control over one or more stages in the production or distribution of a product. An example is the global coffee brand Starbucks who has taken businesses at every step of its supply chain. Thus, allowing it to control the quality of its product and reap the benefits of each level.
#2. Stability
Stability is the ability to endure a temporary problem, such as a decrease in sales, lack of capital or loss of a key employee or buyers. Therefore, try as much as you could to analyze your cash flow and scenarios will help you determine if your business is stable or not.
#3. Renewal
Lastly, this approach occurs when an organization is facing challenging circumstances. However, this approach could include selling part of the business or twisting it off. Besides, in cases where the future of the company is at risk, you can create a leaner business through a dramatic cost-cutting exercise. Howbeit, the goal of this strategy is to get the organization back to normalcy.
Conclusion
Finally, Corporate strategy is the way in which companies strives to create value, develop a unique selling advantage and capture maximum market share. Therefore. without these specific marketing efforts, a business might merely be stirring its activities in hopes of generating more revenues.
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