Corporate Strategies August 17, 2018 – Posted in: Essay Help Online, Free Essay Help Online
Corporate strategy regards how organizations strive to achieve value across multiple dimensions. It is intended for identifying the most significant elements and adjusting to increase utility in different scopes (Freeman, 2010). There are various elements of business strategy targeted at improving the operations and nature of an organization.(Corporate strategies)
Growth approaches reveal one of the most critical aspects of the corporate strategies. They concern the expansions into diverse markets. In this instance, the firm is already familiar with its capacity and the underlying threats in the markets (Mello, 2015). As such, it seizes various growth opportunities to increase profitability and the size of the market share. The move also encompasses the introduction of new lines of business, which often call for continuous training and monitoring.
Status Quo Approaches
Status quo approaches regard the cautionary moves taken up by the organization regarding expansion. Specifically, the management opts to keep the size of the market share as it is at a given time, mostly to avoid possible eventuality leading to losses (Mello, 2015). While it may be seen as bad move, status quo strategy means maintaining a certain level of operations to avoid worse scenarios. Some of the principal incentives to the underlying move include adverse competition and a falling market.
Mergers and Acquisitions
Mergers and acquisitions are also critical corporate strategies influencing the operations and the alignment of an organization. They are possibly the most significant processes regarding change in the structure of an organization (Mello, 2015). A merger refers to forming alliances with other firms working in an identical line of business. The move entails a complete restructuring of the organization leading to the introduction of a new name and mannerof operations. On the other hand, an acquisition involves purchasing other businesses including their assets and employees. However, there are no significant changes to the identity of the new organization, other than an increase in size and scope of operations.
Turnaround and Retrenchment Strategies
The move entails dramatic changes to the workforce, mostly requiring the reduction in the number of employees. The strategy results from the need to cut down expenses and to achieve financial stability. Most organizations often avoid retrenchments due to a compromised business image (Mello, 2015). However, the move could involve withdrawing a particular brand or shift from a specific market to cut down operational costs. However, it is a sound move given that organizations can always return to their original formations once there are better standards in the market.
Differentiation strategy regards the nature of the commodities of a given firm. It is a move targeted at containing competition. Businesses establish distinctive featuresin their products to attract more customers and to keep the existing ones.
A focus strategy concerns concentrating on a particular brand or market that is deemed to align with the interests of a given business. It is also regarded as segmentation, where a company delves into the specifications of the customers. The move also helps in the differentiation of products to sustain the profitability of the organization.
Corporate strategies define the moves by the management to increase the competitiveness of an organization. The addition of value influences both the business and various stakeholders. Amongst the most important incentives at the heart of a thriving corporate strategy is a critical set of resources, the establishment of individuals corporate functions, and designing the organization structure.