Business Strategy And Strategic Decisions

917 Words Mar 30th, 2016 4 Pages
2.2 Corporate Strategy (Johnson, 2008)
2.2.1 What is Strategy
Strategy is the direction and scope of an organization over the long term, which accomplishes advantage in a changing environment by its combination of the existing resources and the competencies with purpose of meeting the stakeholders’ expectations. The characteristics of the strategy are as follows:
• Complexity is defining feature of strategy and strategic decisions and is particularly in some multinational companies with various geography or the firms with wide range of products. For example, Yahoo! facing the complexity of both fast- moving environment and poor internal business.
• Uncertainty is inherent in strategy. Since no one can predict the future.
• Integration is required for effective strategy. The leader needs to cross the functional and operational boundaries to deal with strategic issues and agree on other managers who have different interests and priorities.
• Change is particularly an essential part of strategy. Changing is always hard due to the heritage of the resources and the organizational culture.

2.2.2 Levels of Strategy
Strategy have a number of different levels in an institution. The top level is corporate-level strategy, which is considered with the overall purpose and scope of the organization and how the value will be added to the various parts of an organization. This includes the problems of the geographical converge, the diversity of the products and the allocation of the…
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