Management
Importance of Corporate Strategy
A corporate strategy is an outcome of strategic management that includes strategic planning and provides strategic directions to align business operations and functions to create value for customers and accomplish planned goals and objectives. Large businesses pay special consideration to devise corporate strategies unlike small-scale ventures; however, it should be emphasized that corporate strategy is equally important for growth of small businesses as it could facilitate in converting a small start-up into a medium-scale venture through sustainable growth. In other words, the corporate strategy will help defining a clear path, roadmap and values that deem necessary for small business development and expansion. The researcher would like to argue that corporate strategy is of supreme importance for small businesses in unpredictable and uncertain external environment. For instance, it provides owners a physical and psychological strength to implement their ideas and make effective decisions despite perturbed markets and stiff competition from large-scale businesses. The strategy defines what, when, where and how to achieve in under what circumstances. Indeed, the small businesses need greater preparedness through strategy planning because they don’t have colossal financial resources, economies of scale and subsequently lower costs unlike large competitors. The possible consequences that a small business may experience if it does not have a defined corporate strategy include an unclear roadmap to success and reduced ability to respond and adapt to sudden market changes, fluctuations and competitive rivalry. Moreover, it may fail in utilizing physical, financial and human capital resources efficiently amid lack of strategic planning (Wheelen & Hunger, 215).
Reference
Wheelen, T. L., & Hunger, D. J. (2010). Concepts in Strategic Management and Business Policy Achieving Sustainability, (12th ed). Upper Saddle River, New Jersey: Prentice Hall, Pearson Education
