Corporate Strategy

We speak about strategy in various contexts. We may therefore understand differently what we mean by strategy. In most cases, strategic decisions are about long-term questions. They deal with the organization’s efforts to become and stay competitive. If a business decision is strategic, we may expect it to include elements of complexity, uncertainty and importance. We should understand the changing expectations of our customers, foresee the actions of our competitors, and outline the avenues of opportunities we may have.

A well-thought corporate strategy represents an integrated statement of the organization’s most important choices. It guides the work the whole the organization and ensures a purpose for all the hard work. A balanced and well implemented corporate strategy is usually a prerequisite for superior business performance.

What is corporate strategy?

Strategies deal with long-term directions of organizations. A corporate strategy is the desired scope and direction of a company over the long term. It explains the ways to use the resources and competences of the company to achieve advantage in a changing environment. The target of a corporate strategy is to fulfill the expectations of shareholders and other stakeholders of the company. A corporate strategy embeds the overall strategy of of an organization. The word “corporate” covers all types of organizations – small and large, commercial enterprises and public services alike.

How good is your corporate strategy?

One size does not fit all: Strategies need to be unique. They reflect the environment, stakeholder expectations and resources of the organization. But a successful strategy typically embeds certain key choices. You can now easily assess the present state of your corporate strategy – click below.

Corporate Strategy Audit is free of charge. You will get your score without subscription.

Start Online Corporate Strategy Audit

Corporate strategies may take many forms. However, certain elements, such as a statement of purpose, strategic capabilities and competitive advantages, are useful in any strategy. The following structure serves as your checklist:

Executive Summary
Strategy One-Pager
Values, Mission and Vision

Strategic Environment
Macro Environment
PESTLE Analysis: Political, Economic, Social, Technological, Legal and Environmental Trends
Future Scenarios
Porter’s Five Forces Analysis
Market Segments
Competitor Analysis

Strategic Capabilities
Unique resources
Core competences
Operational Efficiency and Costs
Knowledge
Analysis of Strategic Capabilities: Value Map and SWOT

Stakeholders
Purpose: Values, Mission and Vision
Owners
Corporate Governance
Employees
Suppliers
Authorities
Other Stakeholders
Stakeholder Expectations
Business Ethics
Social Responsibility

Business-Level Strategies
Competitive Advantages
SWOT: Strengths, Weaknesses, Opportunities and Threats
Unique Selling Propositions (USPs)
Sustaining Differentiation
Sustaining Cost Leadership
Sustaining Focus Strategy

Business Portfolio Strategy
Role of Corporate Parent
Synergies
Consolidation Initiatives
Diversification Initiatives
Innovation and R&D Initiatives
Internationalization and Market Penetration Initiatives
GE/McKinsey Matrix
BCG Matrix

Organization
Structures: Divisions, Functions, Matrix
International Structures
Project Management

Implementation of Strategy
Strategic Initiatives
Must-Win Battles
Key Performance Indicators (KPIs)
Timetable
Change Management Plan
Communications Plan