Chapter 2: DETERMINING CORPORATE

STRATEGY
Corporate Strategy

 Encompasses a firm’s corporate actions with the aim to achieve company objectives while
achieving a competitive advantage.

FIGURE.2. FIVE-STEP PROCESS IN DEVISING COMPANY STRATEGY

Environmental Analysis

 It is a process to identify all the external and internal elements, which can affect the organization's
performance.

 Assesses the business external environment to find out threat and opportunities.
Resource Analysis

 Analysis and Marshalling of company resources towards organizational goal.

 The resources required to support particular strategies, and those needed to gain
'competitive' advantage.

Two Classification of Resources

Financial Resources
 The money available to a business for spending in the form of cash, liquid
securities and credit lines.

Non-Financial Resources

 An asset with a physical value. (real estate, equipment, machinery, Human

Resource, or connections.)
Values Analysis

 The clarification or “Thinking through” of values, beliefs, and aspirations about the nature of
business and its purpose.

 How it defines its business, its competitive posture, its concept of itself.

Matching Process

 Finalize via the development of the company’s distinctive competencies.

 Process whereby, environment, resources and values are put together in such a way that emerges
in the company’s competitive edge or distinctive competence.

Determining Corporate Distinctive Competence

 Distinctive competence of a firm refers to a set of activities or capabilities that a company is able
to perform better than its competitors and which gives it an advantage over them.

 Distinctive competence can lie in different area such as technology, marketing activities, or
management capability.

The Strategy in operation

Specific goal are set

 Motivate you and write them down to make them feel tangible.

 Then plan the steps you must take to realize your goal, and cross off each one as you work
through them.

Specific Time Frame

 A set period of time in which covers certain events or in which certain things are expected to
occur.

Setting Priorities

 To decide which things are most important to do We don't have enough time to do everything.