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CORPORATE STRATEGY

MANAGING THE BUSINESS

AuthorHouse

INTRODUCTION TO CORPORATE STRATEGY

INTRODUCTION

American and European companies are using different strategies to enter into the emerging market for the expansion of their platform in terms products and services, distribution channels, supply chain management, innovation and technology across the globe to reach ultimate customers. For instance, Wal Mart Stores, Amazon, e-Bay, have been eyeing the emerging retail market. Microsoft, Samsung and Google are prominent players in the international Smartphone market. Multinational corporations are enabling corporate strategies to achieve superiority in products and services, development of the platform, looking for new markets, new customers and innovation of new products and services through strategic partnership, joint venture, mergers and acquisitions, restructuring and turnaround. Corporate strategy is a strategy of an organization. It applies in an organization to achieve and sustain superior performance, to find an organization's challenges and how to be overcoming business challenges. Corporate strategist to find and understanding industry trends, stability, growth, competition, products and services, innovative strength, weakness, opportunities and avoid threats by applying and delivering innovation and enable driving efficiencies in terms of improving profitability, performances. Therefore, an organization bound own corporate strategic department and take responsibility for policy formulation, implementation and control the policy with the help of innovation. It develops system that helps to increase competitiveness and differentiation. It sparks customer spirit and attractive and drives growth of entire business operation in an organization.

Corporate Strategy is an ongoing process in an organization that develops both long-term and short-term objectives at the corporate, business, strategic and operational levels, ready to either establishes and/ or modifies the organizational hierarchy to manage operational processes, and determines the values, brand image, sustainability, growth, survival, development, suitability, feasibility and acceptability of the strategy.

Corporate strategy is the design framework of the firm growth and development. Its main objectives is the growth of the company in a particular direction, extent, pace and timing. Corporate strategy involves the objectives design, implementation, control of the objectives of firms which are helpful for growth of company's. It determines the company's mission, vision and long term development and growth of firms. Corporate policy depends on its corporate strategy management. Company Strategist will be framed the appropriate strategy for business operation.

Corporate strategy focuses on resources oriented such as technologies, assets, facilities, skills, management capabilities, approaches. Use these and develop core competencies to achieve superiority of business goals. CEO frame and design corporate strategy to be executing a new platform for promotion of products and services for develop and promote a brand and its image through social network to attractive existed and new customers. The company always builds a core competence platform which focuses on current industry practice and it creates new customers, clients, vendors, and the attractive market for product and services and look for opportunities within the company and outside of the company environment.

Companies are classified into sector wise operation. Sectors are Auto, Bank, Power, Retail, Software, Pharma, Financial, IT, Metal, Oil and Gas, Public Sector Companies, Reality, Tech, Airlines and Services, etc.,.

Retail companies are retail giant Wal Mart Stores, Carrefour, Metro, Tesco, Lidl Stiftung & Co, The Kroger Co, Costco, Aldi, Home Depot, Target Corp.

Airline companies are Qatar Airways, Singapore Airlines, Singapore Airlines, ANA All Nippon Airways, Asiana Airlines, Asiana Airlines, Cathay Pacific Airways, Cathay Pacific Airways, Cathay Pacific Airways, Etihad Airways, Garuda Indonesia, Turkish Airlines, Qantas Airways, Lufthansa, EVA Air, Indian Airline, Indigo, EVA Air, Malaysia Airlines, Swiss Int'l Air Lines and Emirates.

Software companies are Microsoft, Oracle, SAP AG, Symantec Corporation, IBM, TCS, Accenture, Capgemini, Wipro, Mahindra, Infosys, CA Technologies and Adobe, etc.,.

Media companies are Comcast, Google, The Walt Disney Company, Rupert Murdoch's New Corp, Time Warner Inc, Viacom Inc, Sony Entertainment, Bertelsmann SE & Co, Vivendi, Cox Enterprises Inc, Dish Network Corporation, Thomson Reuters Corporation, Rogers Comm, etc.,.

Automobile companies are General Motor, Ford, Tata Motors, Toytoa Motors, Maruthi Suzuki, Hyndai, Mahindra, Fiat, BMW, Audi, SAIC Motors, Volkswagen, Honda, Daimler, Nissan, and Renault etc.,.

Oil and Gas Companies are China Petroleum, Exxon Mobil, Petro China, Chevron, Shell, BP, Petrobras, Ecopetrol, Total, Gazprom, Sinopec, Bharth Petroleum, Indian Oil Corporation, ONGC, Reliance Petroleum, Essar, Cairn etc.,.

FMCG companies are Nestle, Procter & Gamble, Coca Cola, Anheuser—Busch, Philips Morris International, Unilever, PepsiCo, British American Tobacco, Reckitt Benckiser Group, General Mills, Colgate, and ITC etc.,.

Global Mobile Phone companies are Samsung, Nokia now merge with Microsoft, Apple, ZTE, LG, Huawei, TCL, Lenovo and Sony, Blackberry etc.,. Smartphone operating systems companies are Taizen and Sailfish, Symbian, Bada, Windows phone, Blackberry, Apple's Ios and Android etc.,.

Pharma and Healthcare companies are Abbott Laboratories, Johnson & Johnson, Pfizer, Hoffmann-La Roche, GlaxoSmithKline, Novartis, Sanofi, AstraZeneca, Abbott Laboratories, Merck & Co, Bayer, Bristol-Myers Squibb, Wyeth, Amgen, Genentech Inc, Daiichi Sankyo, Sinopharm, Merck KGaA, Sun Pharma, Cipla, Dr. Reddy's Lab, Lupin and Cadila etc.,.

Mobile network operators are China mobile, Airtel, Reliance, Vodaphone, Orange, China Unicom, MTN Group, Etisalat, TeliaSonera, Idea Cellular, Tata Teleservices, Aircel and T-Mobile etc.,.

These are the corporate entities and doing business across the world by providing superior quality of services and products with client platform. Strategist determines the future direction of the company and its performance of existing business and will be a future business operation with business and product lines and evaluate how to maximize profitability and optimum utilize of available opportunities for the company.

Corporate strategy department of companies is enabled to observe similar businesses and evaluates available new opportunities that looking for growth. It will happen through strategic alliance for distribution of serving and products and association of using resources, joint ventures with introducing new products and services to new markets and new customer across the globe. The corporate strategy department takes responsibility for the corporate plan and formulating, execute at a functional level, business level and corporate level. It is the prime responsibility of this department. Usually, CEO of the company takes responsibility to overall strategy design responsibility and middle level managers will take responsibility to execute and lower level authority to work to achieve superior goals of the company.

WHAT IS STRATEGY? STRUCTURE OF STRATEGY

IBM is the world's leading management consulting practices. IBM's business strategy expertise can help define and understand market drivers, innovative value propositions, risks, technology strategies, globalization, Mergers and Acquisition activity and the development of new business models. The business strategy offerings help your enterprise understand and leverage core competencies to drive real value by formulating leading-edge, implementable strategies that result in sustainable growth and profitability. Strategy framework is the most responsible and demanding work in companies. Strategist always makes plans for marketing of goods and services for existing, loyal and new customers from across the globe and enhance to provide quality and innovative advance product features facilities to customers.

An organization is able to enable strategic initiatives to do business operation at national and internationally. CEO bound to know the strategy of the company and Strategy structure application in an organization. CEO and team bound to focus on the mission of a company and look for the vision of a company. The CEO must enable business operating model and execute this model to develop a platform for selling products and services to ultimate customers who are widespread across the world. Strategist always monitor the business performance either who comes business or leave the business and find threats and weakness of a company and ready for action plan how to overcome weakness and threats and develop strong strength and make opportunities for a company. Strategy is the future vision of a company.

Corporate strategy useful to the company and more benefited at the time of diversification, it may be over expansion, either overexpansion or too rapid growth, Inadequate financial controls, either Uncontrollable costs or too high costs, Inability to anticipate & deal with new competitors, Inability to anticipate unpredictable shifts in consumer demand and slow or no response to significant external or internal changes.

Corporate performance decline due to recruit an excess number of personnel, Unnecessary and cumbersome administrative procedures, Fear of conflict or taking risks, Tolerating work incompetence at any level or area, Lack of clear vision, mission, or goals, Ineffective or poor communication within various units and between various units.

Apple and Samsung design different business strategies and models within the marketplace and to establish to sell the highly anticipated high end product and services. Apple is to develop and sell new brand, it is innovative products that blended art and technology in order to provide a simple streamline experience to achieve this goal. Meanwhile, Samsung also makes competitive strategy to deliver high end innovative products to achieve its goals. Both companies are offering a bundle of services to customer to capture market share in iPhone segment.

What is the strategy? Is it a plan like short term or long-term? Does it refer to how we will obtain the ends we seek? Is it a position taken any decision? Just like as military forces might take the high ground prior to engaging the enemy; may a business take the position of low-cost provider? On the other hand, does strategy refer to perspective, to the view of the masters, to the purposes, directions, decisions, and actions stemming. Lastly, does strategy refer to a pattern in our decisions and actions? For example, does repeatedly copying a competitor's new product which offerings signal a "me too" strategy? Just what is the strategy?

Strategy is ideas that sustain and grow its business value into the future. The strategy is based on core principles: A CEO finds value, bring specialized expertise in each domain of the business, to make the company as customer driven and make the company be global and establish a strategic competency at market.

A company strategy is to find business challenges, opportunities, drawback, competitive positions, competitors products and services, technology, core platform, market and customers and intellectual resources management and make value creation as branding.

Strategy is all these-it is perspective, position, plan, and pattern. Strategy is the bridge between policy and high-order goals on the one hand and tactics or concrete actions on the other. Strategy and tactics together straddle the gap between ends and means. In short, the strategy is a term that refers to a complex web of thoughts, ideas, insights, experiences, goals, expertise, memories, perceptions, and expectations that provides general guidance for specific actions in pursuit of particular ends. Strategy is at once the course, we chart, the journey, we imagine, and, at the same time, it is the course, we steer, the trip, we actually make. Even when, we are embarking on a voyage of discovery of facts, with no particular destination in mind, the voyage has a purpose, an outcome, and an end to be kept in view.

CONCEPT OF STRATEGY

A strategy is a long-term plan of action. It is designed to achieve a particular superior goal of a company. Strategy applies to many disparate fields such as: Military strategy, strategy, economic strategy, environmental strategy, corporate strategy, business strategy, industry strategy, commerce, science, grand, stability, Expansion, retrenchment, combination, modernization diversification, integration, turnaround, divestment, hybrid, alliance merger and acquisition strategy, etc.,.

Strategy is essentially linked with military science. It implies facing the enemy under war conditions that are to one's advantage. A policy when given a particular meaning under a prevailing situation and in view of the enemy or competitor policy becomes a strategy. So, strategy can be defined as interpretative planning. Strategy includes the determination and evaluation of alternative paths to an already established mission or objectives, and eventually choosing the right alternatives, In common sense, a strategy outlines how management decides and plans to achieve its goal and objectives. Management formulates strategy to shade out the effect of other polices of it's out the overall plan and program's of the competitors, policy to avail of competitive advantage.

COMPANY / CORPORATE STRATEGY

Corporate strategy is the expression of the current hypothesis for what the corporation should be doing. It is, inevitably, a hypothesis, because we cannot get absolute data about matters like customer needs; competitor's plans; the future state of the economy, A company strategy concerns with core values in terms of innovation, excellent customer services and social responsibility, core purposes concerns with updated and new technology, visionary goals are profit, competitive advantages, capturing market share, long term sustains and development and growth, business vision. It is the long term direction of the companies to achieve sustainable development, development platform to sell products and services by using innovative technologies and grab market share by introducing new feature products and services customers across the globe.

McKinsey's Corporate Strategy as "Developing a strategic direction, supported by the necessary reallocation of resources and coordinated business unit plans, and designing a sustainable strategy development process'.

GM's Corporate Strategy as "GM are Focused on a single global vision: To design, build and sell the world's best vehicles. This powers the development of world class products that are winning in the marketplace, and is helping to transform our business and fortify our balance sheet".

The Corporate Strategy exposes identify to the numerous methods that businesses use to create competitive advantage in their marketplace. Consultant learn how to evaluate the competitive implications of broader trends, analyze competitors, identify growth opportunities, and create successful brands. The Corporate Strategy helps to properly approach a vast array of business situations ranging from challenges with starting a new firm with growing revenue in a mature business.

Samsung corporate strategy is different from Apple, Just a few years back, Samsung struggle to capture the Smartphone market. Today capture Smartphone market to apply of corporate strategy. Apple is the world's largest technology company by revenue. Samsung hyped to launch of Galaxy S4 Smartphone, it is the latest step as it tries to overtake Apple, due to a massive and impressive new features. In the same way, Apple launched 5c Smartphone and able to capture the market from Samsung with a rivalry of Microsoft and Google.

Core pillars of Samsung Corporate strategy as outlined:

"Learning from Competitors strategies, products, business lines, product lines, a service line of attracting customers and innovation of new Smartphone. The concentration of research and development to launch and produce Smartphone across the globe, it brings a combination of a phone / tablet, it made hit for Samsung in International market. Samsung is a diverse business with chips, displays, and other technology. It used massive advertising policy for promoting flagship Galaxy phones. Samsung having well supply chain and distribution, it is also corporate advantage. Low cost of Smartphone, it considers past things and make well in future strong capable leader in a Smartphone".

American Global computing software giant Microsoft aggressive and a massive strategic reorganization to try to compete with its two biggest rivals, Apple and Google. Microsoft-Nokia deal is likely to promote growth and competition in the under-penetrated Smartphone space in India, and could lead to potential price cuts in Smartphones—the Lumia series uses Windows 8 system but will no longer be required to pay licensing fee—and quasi-Smartphones like the Asha series, thanks to cost synergies from licensing, patents, intellectual property and R&D capabilities. Microsoft and nokia deal would make revolutionize the mobile market in emerging markets with aggressive competing strategies with Apple and Google.

Corporate strategy is enabling the company strategy. It is integrated growth, profitability, and socio-environmental responsibility is keywords in our corporate strategy. It helps to corporate Strategy department to make and take the right decisions to allow them to take advantage of opportunities while minimizing risks. Combining world-class industry research with decades of hands-on experience, Any company Corporate Strategy activities include that build targeted customer, growth and channel strategies, define a corporate vision linked to tangible actions and goals, improve operational performance, engage in strategic performance measurement and management, conduct market, competitive and industry analysis, design organizational structures and allocate resources, a company strategy is the game plan management, It can be used to stake out market position, company strategy is a long-range blueprint of an organization's desired image, direction and destination what it wants to be, what it wants to do and where it wants to go.

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Excerpted from CORPORATE STRATEGY by B. HIRIYAPPA. Copyright © 2013 B. Hiriyappa. Excerpted by permission of AuthorHouse.
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