The term “Corporate Strategy” is gaining importance in the era of privatization, globalization and liberalization. A few aspects regarding the nature of strategy are as follows:
- Corporate strategy is related mostly to external environment.
- Corporate strategy is being formulated at the higher level of management. At operational level, operational strategies are also formulated.
- Corporate strategy integrates three distinct and closely related activities in strategy making. The activities are strategic planning, strategic implementation and strategic evaluation and control.
- Corporate strategy is related to long term.
- It requires systems and norms for its efficient adoption in any organization.
- It provides overall framework for guiding enterprise thinking and action.
- It is concerned with a unified direction and efficient allocation of organization resources.
- Corporate strategy provides an integrated approach for the organization and aids in meeting the challenges posed by environment.