Five Elements of a Corporate Strategy
There are five elements that consists of a corporate strategy. Corporate strategy deals with the ways in which a corporation manages a set of businesses together (Bowman & Helfat, 2001). The five elements include the following: vision, goals and objectives, resources, businesses and the role of corporate office structure systems and procedures, and the choice of industry (Collins & Montgomery, 1991). According to Collis & Montgomery (1991), a vision is necessary for a corporation but not for a single business unit. The vision provides the corporation with guiding direction that are based on a statement of values and ethics which is motivation to employees (Collis & Montgomery, 1991). An example of company with strong vision is Amazon. Amazon’s vision states, “To be Earth’s most customer-centric company, where customers can find and
discover anything they might want to buy online.” It has lived up to its vision since the firm’s inception. Another vital element of corporate strategy is the setting of goals and objectives that are concrete rather than a broad vision. The goals and objectives are more short term according to Collis & Montgomery (1991).
The authors mention another important element of corporate strategy as being resources. Amazon.com is an example of how to put this element into practice. It may require each unit to justify its proposed objectives, strategies, and programs in terms of how well they satisfy the organization’s overall objectives (Player, 201). A corporation’s resources consist of a set of tangible and intangible assets accumulated over a period of time and cannot be imitated which makes the corporation unique (Collis & Montgomery, 1991). The set of structure, systems and processes of a corporate strategy is another element discussed in the article. Collis & Montgomery (1991), states that this element deals with the formal organizational structuring, capital budgeting, and strategic planning processes of a corporation.
The last element of corporate strategy involves the particular industry that the corporation decides on competing within and also the competitive strategies that were adopted by the various businesses in that industry (Collins & Montgomery, 1991).
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References
Bowman, E. H., & Helfat, C. E. (2001). Does corporate strategy matter?. Strategic management journal, 22(1), 1-23. http://www.wiggo.com/mgmt8510/readings/readings4/bowman2001smj.pdf
Collis, D., & Montgomery, C. (1991). Corporate Strategy: A Conceptual Framework. President and Fellows of Harvard College. 1-9.
Player, R. G. T. H. T. (2014). Amazon. com, Inc. Strategic Management and Business Policy. https://d1wqtxts1xzle7.cloudfront.net/63337726/MBA503_Business_Policy_Strategic_Management20200517-128592-1pdj91b-libre.pdf?1590282503=&response-content-disposition=inline%3B+filename%3DGLOBAL_EDITION_Strategic_Management_and.pdf&Expires=1697482043&Signature=JU5r4k-OW6mfgiW~ZG5GOy~eA9FSTbz8eVm4s2-ttm4hXlc7GomEVyVyszR1MjSoGHrp9wW3z4Nok6eoVWNF9vUD2Kc33nUwqT-ibUGO3Rn4heDK9~Sob6uGPBYkEFBxD7m~4-y4tUyha3TAlhFQWv~2Xc2glaIoxCIaz~Zlf8JDlYfxqjOu2UmHP6BQARL6~uB-mkS2t9pmu~XV6I0QBBsHpiyeeaIAyeYGaPQ4TvmfMTWGbP9C5dJN4G5U6IlXHw07l9XLtnXgUIXx8qFWkvZwxK~kHMGz2ngPLYmihdIHXt~DlmKeTTRSdcym2eon5ztcTrBfgVn~mzzSfx917w__&Key-Pair-Id=APKAJLOHF5GGSLRBV4ZA#page=525
Rothaermel, F. (2023). Strategic management. McGaw-Hill Create.