Corporate Strategy

Corporate Strategy
Ø Corporate strategy deals with three Key Issues in Corporate Strategy:
1. The firm’s overall orientation toward growth, stability, or retrenchment: directional strategy
2. The industries or markets in which the firm competes: portfolio strategy
3. The manner in which management contributes to and coordinates activities of business units: parenting strategy
DIRECTIONAL STRATEGY
Ø Directional Strategy:
· Orientation toward growth
§ Expand, cut back, status quo?
§ Concentrate within current industry, diversify into other industries?
§ Growth and expansion through internal development or acquisitions, mergers, or strategic alliances?
Ø Three Grand Directional Strategies:
1. Growth strategies
2. Stability strategies
3. Retrenchment strategies



v Growth Strategies:
· Most widely pursued strategies – greater market cap, more options, etc.
· External mechanisms...