Chapter 8 : Corporate Strategy

Salam…

Today I would like to explain  what I have learned in lecture for this week.In this chapter,we have learned about a corporate strategy.What is it?

Corporate strategy can be refer to related and unrelated business.The top management was responsible to do corporate level strategy .To entry into new business can take any of three forms either acquisition, internal startup or joint venture.

Related businesses :possess competitively valuable cross-business value chain and resource matchups.

Unrelated businesses : have dissimilar value chains and resource requirements,with no competitively important cross-business relationships at the value chain level.

There have 6 step process to analyze how good a company diversifications:

• Evaluate the long term attractiveness of the industries into which the firm has diversified.
• Evaluate the relative competitive strength of each of business units.
• Check for cross-business strategic fit
• Check whether the firm resources fit the resource requirements of its present business lineup
• Rank the performances prospects of the business from best to worst and determine what corporate parents priority should be allocating resources to its various businesses.
• Crafting new strategic moves to improve overall corporate performance.

wasalam...