Corporate Strategy Formulation

‘Strategy is the direction and scope of an organisation over the long term, which achieves advantage in a changing environment through it’

Growth Strategies – is a strategy aimed at winning larger market share, even at the expense of short term earnings. These consist of 4 broad growth strategies:

“That focus on growth includes a number of strategies CEOs are using in an effort to improve their companies” which are:- 1) Formal innovation processes. 2) Mergers & Acquisition. 3) Risk management. 4) Transforming operating models. 5) Increasing focus on customers.

As mentioned previously about corporate strategy focuses on the alternatives of entities in which the organisation will challenge and maintain those organisations and other corporate level assets (Enz, 2010). The corporate level consists of three expansive accesses for example, the concentration, vertical integration, and diversification, which divides into two extensive categories, related and unrelated. Therefore, these strategies exhibit their strengths and weaknesses of the organisation. In addition, Concentration strategy authorise an organisation to concentrate on a particular business, however, this shows disadvantage to the firm as it relies on that one corporation for survival. Whereas, Vertical integration is a strategy that engages the firm becoming its individual supplier therefore, it is less profitable as it minimise strategic adaptability.

The company's strategy is to pursue the company's objectives rather than to defend it's position against competitors. For example, some brands are `below threshold level' there objective is to improve performance to threshold level.

“Strategy can be thought of as a long term plan of action or execution designed to achieve particular objectives, such as achieving competitive advantage for an organisation. It reflects the values, expectations and goals of those who are in power within the organisation.” (RDI course material-Strategic Management module; Unit 1-Nature and scope of strategic management; Lesson 1-Nature)

Today, many organizations struggle with implementing realistic strategies for growth. More than ever leaders are faced with developing and implementing strategic plans that promote organizational effectiveness while addressing potential threats. Through research I have discovered that there are several approaches or perspectives that leaders can take when developing organizational strategies for growth. According to Porter, (1996) in regard to strategy organizations “Must be flexible to respond rapidly to competitive

Expand market share at horizontal which is area level of market expanding which is limiting thinking about new business market. Never thinking about vertical expanding which means expand the customer in the same location.

According to Porter (1985), strategies allow organizations to gain competitive advantage from three different bases: cost leadership, differentiation, and focus and calls these bases the generic strategies.

Concentration, market development, product development, and innovation are the four growth strategies by the porter. It is the method that concentrates on focusing resources on unique products of particular markets, by using dominating technology. Market development is the strategy in which the completed products are promoted by changing the features of the product to attract more customers in locations where they have potential customers.

According to Porter (1985), strategies allow organizations to gain competitive advantage from three different bases: cost leadership, differentiation, and focus and calls these bases the generic strategies.

A strategy is a plan for the company, which has to establish a difference with its competitors, and has to preserve it in order to create a greater value. Strategy positioning is choosing different ways to achieve similar activities from the competitors.

Talking about corporate strategy lead us to talk first about the strategy. Strategy defined as "the art of devising or employing plans or stratagems toward a goal" (Merriam-Webster online, 2007). It is a plan of actions to achieve long-term goals. At any organization, there are three main levels of strategy; Corporate Strategy, Business Strategy and Functional Strategy as in figure1. Figure2 shows an example of my organization with three strategies levels.

“The best strategy for a given firm is ultimately a unique construction reflecting its particular circumstances.”(Michael Porter). This assignment will focus on fabricating fundamental strategies suitable for a particular industry and a specific organization’s situations, and the different dynamics that managers face when implementing them. Mainly looking into two particular industries namely emerging industries which will be addressed in section a, and Turbulent, high-velocity Industries which will be addressed in section b of the assignment discussing extensively the appropriate strategies firm must adopt to achieve their corporate goals.

A Well-formulated strategy is vital for growth and development of any organization—whether it is a small business, a big private enterprise, a public sector company, a multinational corporation or a non-profit organization.