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CORPORATE GRAND STRATEGIES Corporate-level strategists have a tremendous amount of leeway as well as responsibility. Corporate-level strategy decisions are classified into three grand strategies. These grand
strategies involve efforts to expand business operations (growth strategies), decrease the scope of business operations (retrenchment strategies), or maintain the status quo (stability strategies). Analysis: Corporate strategies represent the long-term direction for the organization. The top management has the primary decision making responsibility in developing corporate strategies and these managers are directly responsible to shareholders. They are paralyzed without accurate and upto-date information from managers at the business-level. Corporations are responsible for creating value through their businesses which they do so by managing their portfolio of businesses, ensuring that the businesses are successful over the long-term, developing business units, and ensuring that each business is compatible with others in the portfolio. Example: The Tata group has a wide range of business from cars,software to Insurance .The main strategic responsibilities of Tatas CEO Ratan N.Tata is to i. ii. iii. iv. v. Overall strategic objectives Deciding whether the firm should divest itself from any of its business Allocating resources among different business Decisions on any new acquisitions or mergers for any particular unit Corporate strategies and policies for business which fall under the brand umbrella Tata vi. vii. viii. Managing corporate portfolio of business Maximize corporate responsibility Give a sense of direction to the Corporation
positioning the business against rivals anticipating changes in demand and technologies and adjusting the strategy to accommodate them
influencing the nature of competition through strategic actions such as vertical integration Developing and sustaining a competitive advantage for the goods and services that are produced.
According to Michael Porter three generic strategies-cost leadership, differentiation, and focus can be implemented at the business unit level to create a competitive advantage and defend against the adverse effects of the five forces. Taking again Tata group as an example and in particular Tata consultancy services. The responsibility of the Managing Director,N.Chandrasekharan will be to i. ii. iii. iv. v. vi. Translate the general statement of intent from the CEO into strategies for TCS Formulate strategy for TCS Take strategic decisions regarding the companys market foray Develop strategies against competitors Assess and take appropriate action on the progress of the company in the market Lookout for suitable acquisitions which will help enhance the competitiveness of the company
Implement the general strategic outline provided by the managing director Plan,communicate and implement the strategic outline provided by the MD Determine which products are to be followed up with,products which are to be done with Identifying the right,viable products for R&D Ensure quality conforming to the standards of the organization Ensure smooth running of the product development unit On the look out for new technologies to acquire Staying tuned with the competitiors R&D work Give feedbackto the corporate & business level managers about the sucees of their policies or drawbacks since they are in the frontline of the battle.
Societal strategies
A societal strategy is how the company perceives itself in its role towards the society, in terms of a particular vision / mission statement that it strives to fulfill corporate level strategies are then derived from the societal strategy.
Levels of Strategy
CORPORATE LEVEL
FUNCTIONAL LEVEL
STRATEGIES [CORPORATE]
SBU1
SBU2
FUNCTIONAL
LEVEL STRATEGIES
OPERATIONAL LEVEL