The 3 Strategies of a Corporation
An Overview on Corporate, Business and Functional Planning
Here are the three strategies of an organisation that represent the master plan in achieving goals and the maximisation of their profits.
In order to work toward maximising profits, organisations need a framework to work by and to move forward in achieving goals that will lead to the maximum profit margin. There are three main strategies that businesses have to adopt to achieve this goal. Of course, strategies will differ from industry to industry and from firm to fim. However, the concepts remain the same and companies customise their strategies to fit their corporate culture, business products as well as functions in the market.
Corporate Strategy
A corporate strategy depicts the corporate culture's perception of progress and growth. The corporate strategy comprises a directional strategy through a corporate vision and a mission statement. The corporate strategy is an important strategy to observe to depict the best image of the company toward its clientele. If the corporation wants to be perceived as a leading clothes manufacturer, its corporate strategies have to incorporate growth in the retail line that will allow them to keep up with the latest trends in fashion and clothes.
Business Strategy
A business strategy accentuates the lines of the different business units. These strategies are developed based on the micro interests of the company. The corporate strategy takes an overview picture of a parenting strategy to ensure that a corporation is on the right track. Collectively, the business strategies ensure that individual business units are able to increase their effectiveness while remaining jived with the corporate strategy. The business strategy concentrates on improving a firm's competitive position by developing their products and services and by continunously exceeding clientele expectations. These business strategies will be based on a SWOT analysis and will recommend strategies to top management, to look into growth opportunities.
Functional Strategy
A functional strategy is one that is implemented and activated by functional areas that support product and service development. These could be human resources, marketing and/or research and development. Their functional strategies have to be customised to ensure that the business strategy adopted by the business team will be able to succeed. The functional strategy therefore supports the business strategy. Effective functional strategies will help the corporation develop competitive advantages for the company.
Lastly, it is important to know that strategies have to be outlined in a flexible manner in order to keep in pace with the different changes that take place in the external environment. From a hierarchial point of view, the corporate strategy is the one that remains the most stable while the functional strategies are those that change to keep in pace with customer needs and aggressive competition in the market.
