- How are corporate strategies used in the business world
Corporate strategy can be defined as a set of company objectives and the ways to achieve them. Formulating a corporate strategy usually requires to set long-term company goals, to make assumptions about the future environment and to identify resources and capabilities that the company currently owns or may acquire in the future. These steps could allow further formulation and implementation of the strategy in the business world. Firstly, managers should leverage company strengths and pursue new external opportunities, while mitigating weaknesses and avoiding the potential threats. Secondly, corporate strategy helps businesses to match company resources and capabilities with key objectives and goals (Sutton, 1980).
- What resources are needed for strategy implementation
Strategy implementation is a long-term process that requires several resources. Firstly, the company needs financial and physical capital to enable strategy implementation. Secondly, strong leadership and managerial authority are essential to ensure that the firm follows its strategic path. Strategy implementation also requires employees, who are both committed to the organization and possess relevant skills. In order to execute a strategy it is crucial to create a culture that is consistent with company aspirations and motivates people to achieve common goals. Finally, organizational structure is important, as it facilitates decision-making, empowers people and establishes control mechanisms to monitor strategic progress (Cole, 1997).
- What performance measures are there for business scenarios
Performance measurements are an essential element of strategy implementation that ensures that company targets are achieved. The choice of measures depends on business objectives. One way to classify performance measures is a Balanced Scorecard. It helps to evaluate business scenarios from four different perspectives: Learning and Growth, Internal Processes, Customer Dimension and Financial Performance. The first category measures company progress and continuous improvement. Internal Processes measures evaluate efficiency and effectiveness of company processes. Customer dimension is concerned with customer perception of the company and their satisfaction with products/services. Lastly, Financial Performance measures appraise how well company maximizes shareholder value.
References
Cole, G. A. (1997). Strategic management. (2nd ed.). London, UK: Thomson.
Sutton, C. J. (1980). Economics and corporate strategy. New York, NY: Cambridge University Press.
