Corporate Strategy 101: Defining Your Firm’s Long-Term Direction

Corporate strategy sets the highest level of planning in a diversified organisation. It clarifies where the company will compete and how to allocate resources so the whole exceeds the sum of its parts. Key components include portfolio management, resource allocation, organisational design and strategic tradeoffs. These help leaders decide which businesses to enter or exit, direct capital and talent, structure operations and balance risk. Common approaches range from growth and stability strategies to retrenchment and reinvention. While corporate strategy asks “Where do we play?”, business strategy focuses on “How do we win?” in each chosen market.

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