Corporate Strategy

Not strategy, simply performing similar activities better than rivals.

Is about being different, choosing a different set of activities to deliver a unique mix of value

- long term direction;
- scope of an organization activities;
- competitive advantage;
- strategic fit with business environment;
- organisation resources and competences ;
- values and expectations of power players

Intent: Objectives, focus, motivation;

Analysis: Internal, external;

Decision: corporate, business and functttional level;

Action: Processes, practice, change

• Complexity : you ask everybody for a decision to make and everyone has an other opinion, this is conflicting.
• Uncertainty;
• Operational decisions;
• Integration;
• Relationships and networks : companies go to conferences to have some contacts that help to identify new trends, discuss with people you know that can bring you the right answer;

• Change : it is important when you communicate a strategy early or late

It is really difficult to be friends with everybody while making some decisions.

• Mission
• Vision
• Goal
• Objective 

describes what you’re doing and how you do it.

an abstract picture of the future 

• Corporate level strategy
• Business level strategy
• Functional level strategy

3 levels need to be aligned --> integration in strategy

Strategy that defines all the objectives and positioning of the organisationt, responsible to develop new strategy business units and they decide if they want to outsource a business unit.

Focuses on the head corporate of an organisation that says what they should be doing and what they shouldn’t be doing.

• geographical scope
• diversitty of products/services
• acquisition of new SBU
• How ressources are allocated
• Image of the brand

Focuses on strategic business units. Where the competition takes place, indirect competition with competitors, define the competitive reality with others, they decide the position to adopt to be competitive with others.

Example : Nestlé, Nescafé, Nesquick that all have their own competitors in their own situation even if they come from the same company

• How to compete?
• Innovation;
• appropriate scale;
• Competitors moves

operational strategy, about the different functions of a strategy, need to provide guidelines and suppor for business units.

example: HR help the company to work  

a part of an organisation for which there is a distinct external market for goods or services that is different from another SBU.

includes understanding the strategic position of an organisation, making strategy choices for the future, and managing strategy in action.

Why do we call it strategic management ? because corporate strategy is only about corporate level of strategic management.

We call it strategic management because the management of the strategy is related to strategy, it is a about the implementation of strategy 

• Market-based View - Deliberate strategy;

Point A and you can plan a point B, the better you plan, the better you analyse the situation, the better would be your plan.

• Resource-based view - emerging strategy;

Planning makes no sense, an organisation can learn all the time so there is no sense to make plans for the future it is better to learn over time and then decide or adapt.

Which one is better ? both, you can make plan and then adapt your plans regarding the situation.

Why do we keep the first one ? to attract people, you need to tell them a story to make them believe and strategy is about story telling, we need a plan to attract others.

It is also important for you to know initially what you want to reach.

• Strategy analysis improves decision processes, but doesn’t give clear answers;
• Strategy analysis assists us to identify and understand the main issues;
• Strategy analysis helps us to manage complexity; 
• Strategy analysis can enhance flexibility and innovation by supporting learning;